When looking at a Customer or Supplier Masterfile Transaction List (Trans F5) it can be difficult to see how Credit Notes (and Payments, although not covered in this article) have been applied to invoices. This can be made easier by looking at a report that displays all the allocations for a Credit Note together.
The allocation of credit notes can be viewed by:
Go to either:
Customers, Reports, Old Reports, Sales Register.
Suppliers, Reports, Transactions, Purchases.
If running the Customer Sales Register report, select Allocation Detail in the Options box.
Enter any ranges required for the report, for example: the Customer Range or Supplier code and perhaps a Date Range.
Accept F9 to run the report.
Note that for each Credit Note listed, the invoice or invoices to which it has been applied will be listed.
The above reports will make it easy to see if an allocation is not correct. For example, if a credit note was given for $100 and $110 was applied to one invoice, then -$10 will be shown as applied to a second invoice. The second invoice balance will therefore be increased.
A problem like the example above can be fixed by either:
If the credit note itself is correct, by entering a zero Adjustment transaction to fix the allocation.
If the credit note is incorrect, then it should be reversed (enter a negative credit note), along with its allocation. Then a new credit note entered in its place.
If the Credit Note is correct and the problem is just a misallocation, then do the following:
Go to either:
Customers, Transactions, Adjustments, Enter Adjustments.
Suppliers, Transactions, Adjustments, Enter Adjustments.
The order of the fields varies between Customers and Suppliers, but the following guidance is provided for fields listed:
Adjustment Date: enter a date for the adjustment, the date of the Credit Note you are adjusting would be best.
Adjustment Number: can be entered manually or left with the existing Attaché suggested number which is the next Adjustment Number. If blank, enter a number.
Adjustment Amount: Leave as 0.00.
Details: Enter a description about why you are entering the Adjustment.
G/L Account [Customers]: For a Customer Adjustment just accept the code entered, the transaction will have a zero amount anyway.
General Ledger Dissections [Suppliers]: can be left blank.
Click or press Accept F9 to move to the Invoice Allocation screen.
Enter the values you need to correct the allocation against each invoice. To do this, enter a positive or negative number as you need. For example:
if the balance of an invoice is showing as negative, meaning too much value from a credit note has been applied, then enter a positive number to reverse the current negative balance.
if you need to reduce the value of an invoice, enter a negative number.
Ensure that the three totals (Total, Allocated and Balance) at the top of the adjustment allocation screen are all zero when you are finished allocating.
Accept F9 to save the Adjustment.
Check that the result is as you expect by going to the Masterfile and checking transactions at Trans F5.