Prerequisites
Before beginning the adjustment process, ensure you have:
- Appropriate system permissions for Accounts Payable module
- The original invoice number
- The vendor number
- The correct adjustment amount
- The appropriate general ledger account numbers
Accessing the Adjustment Feature
To begin adjusting a posted invoice, follow these initial steps:
- Navigate to Accounts Payable > Main > Invoice Data Entry
- Enter the vendor number for the invoice requiring adjustment
- Input the original invoice number that needs modification
The Adjustment Process
When you enter the invoice number, the system will display an "Adjust Invoice on File" window, indicating that the invoice has already been posted. This is where the actual adjustment process begins.
Step 1: Initiating the Adjustment
Click the "Adjust" button in the bottom left corner of the "Adjust Invoice on File" window. This action will open the A/P Invoice Data Entry window with the adjustment options.
Step 2: Entering the Adjustment Amount
In the A/P Invoice Data Entry window, locate the Adjustment Amount field. Here you can:
- Enter a positive number to increase the invoice amount
- Enter a negative number (using the minus sign) to decrease the invoice amount
Step 3: Assigning General Ledger Accounts
After entering the adjustment amount, you must properly allocate it to the appropriate general ledger accounts:
- Click the Lines tab
- In the G/L Account field, enter the general ledger account number where the adjustment should be posted
- Verify the amount field shows the correct adjustment value
- Click Accept to proceed
Updating the System
The final phase involves updating the system records to reflect the adjustment:
Step 1: Register Updates
Two important registers must be updated:
- Invoice Register
- Daily Transaction Register
The system may be configured to update both registers automatically, eliminating the need for separate update processes.
Verification Process
After completing the adjustment, it's crucial to verify that the changes were properly recorded:
Checking the Vendor Account
- Navigate to Vendor Inquiry
- Locate the adjusted invoice
- Review the transaction details
You should see:
- The original invoice entry
- The adjustment entry below it
- The updated net amount reflecting both transactions
Common Scenarios for Invoice Adjustments
Several situations may require invoice adjustments:
Vendor Credit Memos When you receive a credit memo from a vendor, you can use the adjustment feature to reduce the invoice amount accordingly.
Correction of Errors If an invoice was entered with an incorrect amount, the adjustment process allows you to modify the balance to reflect the proper amount.
Best Practices
To ensure accurate adjustments:
- Double-check all amounts before processing
- Maintain proper documentation of the reason for adjustment
- Verify the correct general ledger accounts are used
- Review the adjustment in vendor inquiry immediately after processing
- Print and file relevant reports for audit purposes
System Requirements
The adjustment feature is available only for:
- Invoices that have been updated through the Invoice Register
- Unpaid invoices
- Invoices that haven't been fully applied to other documents
Troubleshooting
If you encounter issues during the adjustment process:
Invoice Not Found
- Verify the correct vendor number
- Confirm the invoice number is exact
- Check if the invoice has already been paid
Unable to Adjust
- Ensure the invoice hasn't been paid
- Verify system permissions
- Check if the invoice is on hold
Impact on Financial Reports
Understanding how adjustments affect your financial reports is crucial:
- The adjustment appears as a separate line item in vendor history
- General ledger accounts are updated to reflect the change
- Financial statements will show the modified amounts
- Audit trails maintain records of both original and adjusted entries
Regular Maintenance
To maintain system efficiency:
- Regularly review outstanding adjustments
- Update registers promptly
- Archive completed adjustments according to company policy
- Maintain clear documentation of adjustment reasons
Additional Considerations
When working with invoice adjustments:
- Consider the timing of adjustments in relation to month-end closing
- Coordinate with accounting staff to ensure proper approval processes
- Maintain consistent procedures for different types of adjustments
- Keep detailed notes about the reason for each adjustment
The ability to adjust posted invoices in Sage 100 provides necessary flexibility in managing accounts payable, but it should be used judiciously and with proper controls in place. Regular review of adjustment procedures and maintaining clear documentation helps ensure accurate financial records and smooth audit processes.
Citations: [1] https://www.dwdtechgroup.com/sage-100-mas-90-200/adjust-an-accounts-payable-posted-invoice-in-sage-100/ [2] https://www.acutedata.com/how-to-change-the-amount-on-an-ap-invoice-after-it-has-been-posted/ [3] https://www.youtube.com/watch?v=srXQ_QJVDa4 [4] https://www.youtube.com/watch?v=glG5JPt5_Qg [5] https://www.rklesolutions.com/blog/how-to-un-apply-credits-from-a-posted-invoice-in-accounts-receivable [6] https://www.dwdtechgroup.com/webinar/oops-i-did-it-again-how-to-correct-common-mistakes-in-sage-100/ [7] https://www.swktech.com/adjust-ap-invoice-sage-100-tips-and-tricks/ [8] https://help-sage100.na.sage.com/2024/Subsystems/AP/APMAIN/ADJUST_INV_ON_FILE_OVR.htm [9] https://www.youtube.com/watch?v=_U_ZrXnbBVA
