Understanding AR Invoice Adjustments
An accounts receivable invoice adjustment is necessary when you need to modify an existing invoice amount, whether to increase or decrease the total. Common scenarios include correcting billing errors, applying additional charges, or accounting for customer overpayments.
Prerequisites
Before beginning the adjustment process, ensure you have:
- Valid login credentials for Sage 100
- The original invoice number
- The customer number
- The adjustment amount
- Appropriate general ledger account codes
Step-by-Step Adjustment Process
Accessing Invoice Data Entry
- Open the Modules menu in Sage 100
- Select Accounts Receivable
- Navigate to Main menu
- Click on Invoice Data Entry
Locating the Invoice
Enter the Invoice Number you wish to adjust in the designated field. The system will display a message indicating "Invoice Number already used" - this is normal. Click Accept to proceed.
Customer Verification
Input the Customer Number associated with the invoice. When prompted with "Invoice Already Exists. Adjust?" click Yes to continue.
Reviewing Original Totals
The system will display the Original Totals for the invoice. Take a moment to verify these amounts before proceeding with any adjustments. Click OK after confirmation.
Making the Adjustment
Positive Adjustments
To increase the invoice amount:
- Enter the change as a positive number
- Use the appropriate sales code (typically miscellaneous for G/L account adjustments)
- Verify the invoice date
Negative Adjustments
To reduce the invoice amount:
- Enter the change as a negative number
- For credit memos, use the opposite sign (positive to reduce, negative to increase)
- Double-check the posting date before proceeding
Date Modifications
You have the flexibility to modify both the Invoice Date and Invoice Due Date during the adjustment process. To change dates:
- Make desired changes within the data entry window
- Click the Totals tab
- Accept the entry
- Update the A/R sales journal
Special Considerations
Split Commissions
Invoices with split commissions require special handling. These cannot be adjusted directly and must be modified through the Sales Order module using either a credit or debit memo.
Credit Memos
When adjusting credit memos, remember:
- Enter negative amounts to adjust positively
- Enter positive amounts to adjust negatively
- Verify all totals before finalizing
Updating the Adjustment
Sales Journal Processing
After completing the adjustment:
- Navigate to Modules > Accounts Receivable > Main menu
- Select Sales Journal
- Print and update the adjustment
Verification Process
To confirm the adjustment has been properly recorded:
- Access Vendor Inquiry from the main folder
- Select the relevant vendor number
- Review the Invoices tab
- Verify the adjustment appears with the correct amount
Best Practices
Documentation
Maintain clear records of all adjustments by:
- Adding detailed comments to explain the reason for adjustment
- Keeping supporting documentation on file
- Recording the adjustment date and authorized personnel
Timing Considerations
Process adjustments in a timely manner to:
- Maintain accurate financial statements
- Ensure proper period closing
- Facilitate accurate customer statements
Quality Control
Implement these quality control measures:
- Double-check all amounts before processing
- Verify G/L account codes are correct
- Ensure proper authorization is obtained
- Review adjustment reports promptly
Troubleshooting Common Issues
System Messages
If you encounter error messages:
- Verify all required fields are completed
- Check for proper date formats
- Ensure you have proper security clearance
- Confirm the period is open for posting
Data Validation
Before finalizing any adjustment:
- Compare the original invoice amount
- Verify the adjustment calculation
- Check the resulting balance
- Confirm the correct G/L accounts are affected
Post-Adjustment Procedures
Reporting
Generate these reports to maintain proper documentation:
- Adjustment register
- Updated customer statements
- G/L transaction detail
- Sales journal updates
Record Keeping
Maintain accurate records by:
- Filing adjustment documentation
- Updating customer records
- Recording audit trail information
- Archiving supporting documents
Conclusion
Proper AR invoice adjustment in Sage 100 requires attention to detail and adherence to established procedures. By following these steps and maintaining appropriate documentation, you can ensure accurate financial records and maintain proper customer account balances. Remember to verify all adjustments and maintain clear documentation for audit purposes.
Citations: [1] https://www.acutedata.com/how-to-adjust-an-accounts-receivable-invoice-or-credit-memo/ [2] https://ahrefs.com/blog/seo-writing/ [3] https://blog.hubspot.com/marketing/blogging-for-seo [4] https://www.linkedin.com/pulse/bullet-points-good-seo-mirza-baig--xk9cc [5] https://www.youtube.com/watch?v=glG5JPt5_Qg [6] https://help-sage100.na.sage.com/2018/Subsystems/AR/ARPROCED/ADJUST_THE_INVOICE_OR_CREDIT_MEMO.htm [7] https://getgenie.ai/how-to-optimize-write-bullet-points/ [8] https://www.incrementors.com/blog/how-to-write-seo-friendly-blog-posts/ [9] https://contentwriters.com/blog/seo-basics-how-to-write-an-seo-friendly-blog-post/ [10] https://www.growthmarketingpro.com/how-to-write-a-blog-post-that-will-increase-seo/
