Adjusting a Customer’s AR Balance

If you need to adjust a customer’s balance, make an AR journal entry. For example, you can make an AR journal entry to write off a customer’s bad debt.

Note: For information about customer historical and AR ledgers, see Customer Ledger/History Tab.

To adjust a customer’s AR balance

1. Look up the customer whose balance you want to adjust. The Customer Maintenance screen appears. For more information, see Looking Up a Customer.

2. Click the Ledger/History tab.

3. Click Open Item. The Open-Item Ledger screen appears.

4. Click AR Journal Entry. The Customer Balance Adjustment screen appears.

5. Select the date on which the adjustment should be applied, along with the discount date and payment due date from the pop-up calendars.

6. Type a reference for the adjustment if needed.

7. Create the offset entry:

a. Click Add. A journal-entry line appears in the Offsets area.

b. If you use the customer department method, click the Dept# column, press , and select the appropriate department.

c. Click the Major column, press , and select the account that the offset entry will post to.

d. Type a description for the entry.

e. Type the amount of the adjustment.

Note: A positive amount increases the customer’s balance. A negative amount reduces the customer’s balance. You can disregard entering a value in the Disc $ field.

8. To finish the adjustment, click OK. A confirmation message appears.

9. Click Yes.

You can apply the adjustment to an invoice or another document right away or later. For more information, see Applying ROAs.