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
- Amount — The amount the customer is paying
- Suggested Balance — aACE's calculation of the amount due
- Amount — The amount you are receiving towards the invoice's balance
- Adjustment — The amount you are applying to the invoice's balance as a discount of some sort (see Adjustment Code below)
- 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.
- 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.