Managing Non-adjustable Differences by Recording on Account

This document explains how you manage customer payments that for some reason cannot be entirely written off or allocated to invoice during the entry session by recording them on account.

Outcome

Payment differences or entire payments are recorded on account in accounts receivable. An accounting journal and a customer payment journal are printed.

On account records are listed in 'Payment Received. Record' (ARS110/F) for the customer in question and available for later allocation or adjustment.

Allocate or adjust the on account records later on in (ARS110/F).

Accounts receivable and the general ledger are updated. The following account entries are created:

Accounting Rule Account Debit Credit
AR30 – 100 Customer   x
  Bank x  

Before you start

Follow These Steps

  1. Decide That the Payment Should Be Allocated Later

    The reason for deciding to record a payment or payment difference on account can be:

    • The payment cannot be adjusted or allocated during the entry session due to insufficient information or incorrect records
    • The payment must be recorded directly in accounts receivable for report or auditing purposes, for example, and there is no time for allocating or adjusting it right now.
  2. Record Customer Payment On Account

    Record the entire payment or any non-adjustable payment differences on account against a specific customer when you at present cannot process the payment. The temporary on account payment is then displayed as an accounts receivable record.

    You do this in 'Payment Received. Record' (ARS110).

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