AR QUERIES: 2

[k.khan]

1-In the miscellaneous receipt window, in the activity region different non invoice items like donation is available, I want to add a new item in this LOV.

2-I have made a new tax code (sales tax) of inclusive nature @ 10% but at the Time of calculation for 100 USD it is calculating 9.09 tax amount and leaving 90.91 as the line amount which is definitely not correct

3-In the receipt window two options are available
*Chargebacks
*Adjustments
What is the functionality of it?

4-If we have book invoice of amount 10000.64 and we receive receipt of amount 10000 then remaining 0.64 is outstanding so I want to write off this minor amount What I have to do???

[ahmadbilal]

In the miscellaneous receipt window, in the activity region different non invoice items like donation is available, I want to add a new item in this LOV.


<b>Define Receivable Activity</b>

In the receipt window two options are available
*Charge backs

<b>Use charge backs to create a new debit item for your customer when closing an existing debit item. For example, your customer sends payment of $75 for a $100 invoice. You can apply the receipt to the invoice, then create a charge back for the balance due.</b>

*Adjustments

<b>Create adjustments to increase or decrease the balance due for an invoice, debit memo, charge back, or commitment. For example, you apply a receipt to an invoice, but there is still an open balance of two dollars. You can create an adjustment to write off the remaining amount and close the debit item</b>

[k.khan]

thanks alot Ahmed Bilal but my 2 and 4 questions are still intact.

[k.khan]

While entering the chargeback it is giving the error

Gl account is not defined for the chargeback adjustment activity

I have checked it out in the receivable activity adjustment category Gl account is there.plz let me know where i have commit mistake

[muskan]

Is the chargeback or bad debt is same

[muskan]

what is the difference between writeoff and adjustment

[muskan]

where our think tanks has gone,No body is responding to it...I always has found good accountants,consultants giving valueable suggestions ,why dont they go for this.

[mansuman]

Hi,

The adjustment is same as writeoff.

Incase Invoices we use the term as adjustment and it is used to adjust big amounts which are uncollectible from the customers or what we say as bad debt.

Where as writeoff term we use incase of receipts.Whenever we apply receipts if a small amounts still remains we writeoff the that amount against the same customer account to close the receipt.

e.g We have applied a receipt of amont $105 to an invoice of amount $100 so $5 remained unaplied,in that case we writeoff $5 to the same customer account.

Incase of invoice when we are not able to collect the overdue amount or whcih are overdue for a long time we generally don't want to show that amount as sales revenue because we have to pay tax against that sales which is actually not recognized.So we go for the adjustment of that amount to a differnt account.

Hope the above things are clear.

Thanks

[muskan]

Here you go..Thanks alot for ur great explanation.
God Bless u

[GreenChain]

Difference Between Write Off and Adjustment:

Write Off: This is used for Receipts only for overpayments. For example, invoice amount is USD 999 and Receipt is USD 1000. Then we will be left with USD 1, which we can writeoff.

Adjustments: This is used for both positive and negative amounts. Positive Adjustment example: Any Charges to be applied on invoice. Negative Adjustment example: Discount.

Both Adjustment and Receipt Writeoff require approvals in Receivables.

[k.khan]

I have made a new tax code (sales tax) of inclusive nature @ 10% but at the Time of calculation for 100 USD it is calculating 9.09 tax amount and leaving 90.91 as the line amount which is definitely not correct

whats wrong with this...plz let me know where i have commited mistake