Eliminating Residual A/R Balances

Before you generate any financial statements, use the Residual A/R Balance Eliminations utility to eliminate any residual A/R balance amounts that were created by exchange rate fluctuation and currency rounding differences. Residual balances show up as open items in receivables. This utility eliminates the residual balance amounts by generating debit memos or credit memos to offset the balance.

In addition to currency rounding differences, this utility can be used to eliminate any residual balances. For example, if an invoice of 100.20 USD is issued and the amount paid is 100.00 USD, you can use the utility to eliminate the .20 USD balance.

Note: This utility only generates debit and credit memos for individual customers and not for corporate customers.

In the Residual A/R Balance Eliminations utility, specify the search criteria ranges for the residual balances.
Select Preview and click Process.
The lower grid displays the results based on the criteria you selected:
- For open item customers, the utility searches their open accounts receivable records and invoices net balance due. If the net amount is a positive balance, a Credit Memo will be created for each of the invoices. If the net amount is a negative balance, a Debit Memo will be created for each of the invoices.
- For balance forward customers, the utility searches their open accounts receivable records and net amount from their invoices. If the net amount is a positive balance, a Credit Memo will be created as an open credit and the invoice number will be zero. If it is a negative balance, a Debit Memo will be created and the invoice number will be zero. The words "Balance Forward" display in the Invoice column on the lower grid. The Invoice Date in the grid will be blank.
Select Commit and click Process.

If the open invoice amounts are positive numbers, the utility generates Credit Memos; if the amounts are negative numbers, the utility generates Debit Memos.

Note: The Debit Memos and Credit Memos generated here are similar to those entered using the Invoice, Debit and Credit Memos form except they will use the general ledger account number defined in this utility. You can still run the Delete A/R Posted Transactions utility to set the customer balance forward to zero.
After the utility generates the debit or credit memos, use the Invoice, Debit and Credit Memos form to modify the transactions and then post using the Invoice Posting Utility.