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I'm on an accrual basis and just getting started with Accounts Receivable. How do I enter beginning balances for customers with a credit balance without affecting General Ledger?

To enter beginning balances for customers with a credit balance without affecting General Ledger, you must first switch to cash basis. Once you have switched to cash basis, you can enter the payment credits, post payments, then switch back to accrual basis. If you try to enter the credits while on an accrual basis, the credits affect General Ledger.

What is a miscellaneous fee, and what is it used for?

A miscellaneous fee holds unapplied payments that are not designated for a certain area. If you use this fee, ACS finds the oldest outstanding invoice and pays it. If you want the unapplied payment to affect a specific area, use the fee for that area.

Sometimes the numbers on the miscellaneous fee do not match the Unapplied Payments Journal. This could occur for several reasons, such as:

  • If you use cash-basis accounting, payment credits do not affect General Ledger but display on the Unapplied Payments Journal.
  • If the payment is from a prior year, the Unapplied Payments Journal may not reflect it due to fees closing at year-end.
  • Transactions from other modules, such as refund checks, affected the account.

How can I attach discounts to several invoices at one time?

When attaching a billing code to a customer, the billing code has a discount field. This lets multiple discounts affect one customer. You can only see discounts under the Billing Codes option under Add/Edit Invoices. When the invoice is generated, it takes the discount into consideration.

How do I handle a payroll adjustment in Accounts Receivable?

In Accounts Receivable, issue a credit against the invoice. In Payroll, if there is one Accounts Receivable account, the deduction should have that account as the credit. If there are multiple accounts, the deduction goes to a liability account. Then, create a journal entry to debit the liability account and credit the corresponding revenue/designated accounts affected by the payment.