Using the Adjustment Column in Receipts

This guide explains how to make adjustments to the amount on a receipt. It is intended for basic users.

Adjustments on a receipt record can be used to account for early payments and other discount-given scenarios. The Adjustment Code column allows you to drive the discount to the applicable GL account. (Note: Your system administrator manages the adjustment codes.)

As an example, suppose you had an outstanding invoice for $5,300.00, with terms of Net 10 2%. The customer opts to take advantage of the early payment discount, sending a check for the discounted amount of $5,194.00. Your A/R rep would create a new customer payment in aACE similar to the following screenshot:

Payment Info Section

  1. Amount — The amount the customer is paying

Invoices Section

  1. Suggested Balance — aACE's calculation of the amount due
  2. Amount — The amount you are receiving towards the invoice's balance
  3. Adjustment — The amount you are applying to the invoice's balance as a discount
  4. Adjustment Code — A dropdown menu to specify the reason for each adjustment
    Note: This field becomes active after you enter an amount in the Adjustment field.
  5. Total — The total value you are applying to the invoice's balance (amount + adjustment)

Additional Examples

Another common scenario comes from an ecommerce provider that levies a fee on each order. If you sold $500.00 worth of product on an online order, but the ecommerce provider charged $25.00 for that order, you would only receive $475.00. The ecommerce fee should be recorded as an adjustment:

Accounting Impact of Adjusting a Receipt

When you post an adjusted receipt:

  • The Total will credit the A/R Account.
  • The Amount will debit the Bank Account.
  • The Adjustment will debit the Receipt Adjustments (Discounts Given) Account associated with the specified adjustment code.
  • The Total will be applied towards the related invoice's balance. If the invoice is fully paid, it will be automatically closed.