How to Remove an AR Credit
A customer recently asked “I have a customer that has credits on their account that will not be used. The credits will not be refunded, etc. Is there a way to delete these credits? The customer still has an outstanding balance and will continue to be a customer in the future but the credits will not be used.” Here is what Kevin had to say:
This is what you want to do:
If you are going to just reverse the credits before the end of the year, then copy down all the credits you want to reverse and the dates of when they were entered. (the dates are important as you will see below)
Leave GL integration on if you want the transactions to show and a balance to go to the AR line on the GL. If not, turn off the GL in the AR Module Preferences – but don’t forget to turn the integration back on when finished!
Go to the AR Transaction Codes window and make two new codes: “3BAL” or “3REV” going back to your AR GL code the customer is using. The code must begin with a 3!
Now open the AR Enter Payments/Adjustments window and enter each credit reversal:
Now you can take all credits off with one transaction, but I would do however many reversals with how many credits you have on the customer just to keep it clear. Let’s say our customer has a $78.98 balance and has 2 credits one for $12.15 and one for $10.00. The credits were given in September and November of last year. Take one at a time and reverse the credit with the day after the date you copied from the list. In the example above the credit was given on 9/5/2008. The reverse will look like the day after when we are done. Each would be done separately. Now post this and the credits will be reversed.
Now the secret so that the customer doesn’t see what has happened: (unless you want them to)
Run the Purge open item report for just that company.
When doing so run the date after the last reversal date on the statement:
Now the history is still on YOUR books, but not on the statement and the balance has been corrected. The statement is updated and looks very clean for the new year.
Kevin
System Trainer
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