Using the Adjustment Field in Receipts

The Adjustment field in Receipts can be used to account for early payments and other discount-given scenarios. The Adjustment Code (#4 in the screenshot below) 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 to for $5999.90, 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 $5,879.90. The receipt entered in aACE would look like 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 of some sort (see Adjustment Code below)
  4. Adjustment Code — A dropdown menu that becomes active after an amount is entered in the Adjustment field. This allows you to specify the reason for each adjustment.
  5. Total — The total value you are applying to the invoice's balance (amount + 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 selected adjustment code.
  • The Total will be applied towards the related invoice's balance. If the invoice is fully paid, it will be automatically closed.