Accounts Receivable - Clearing Amounts from AR and AP Aging Reports

Overview

Small amounts may accumulate on aging reports. These amounts are either overpayments or underpayments. An invoice will continue showing on an aging report if there is one cent outstanding. Or, if an invoice was overpaid by a cent, the remaining cent will remain in the system, waiting to be linked to the next invoice for the vendor or customer.

Overpayments

When an invoice is overpaid, this will also create a deposit. A pop-up window will appear stating that the amount not applied to an invoice will be registered as a deposit, to be tied to a future invoice. For more information, please refer to Accounts Receivable - Applying Overpayments to Invoices.

To clear overpayment amounts, create a new invoice and then link it to the outstanding deposit, whether in AR or AP. For more information, please refer to Applying an Invoice to a Deposit.

Alternatively, the invoice amount can be increased to match the initial check, but most users are more familiar with invoice entry.

Underpayments

In most cases, paid invoices remain on aging reports due to underpayments not being written off (in AR) or discounted (in AP) the first time that the check was entered. The solutions are as follows:

• AR Invoice: Write off the remaining amount. For more information, please refer to Accounts Receivable - Writing Off Underpayments.

• AP Invoice: Using either of the payment programs in AP, the remaining amount of a nearly entirely paid invoice can be discounted and then paid with a $0 check.

• Non-Job Billing Generated AR Invoice: The invoice can be reduced in AP or AR by entering a debit/credit memo so that the invoice no longer has an outstanding amount. For more information, please refer to Accounts Receivable - Entering Debit and Credit Notes or AP – Enter Debit/Credit Memos.

  NOTE: If the write-off is substantial, do not follow this method, since by following the write-off process, the accounts specified for write-offs in the AR or AP Control File will be used and this is important for significant write-offs.

Outstanding Retainage

If there is outstanding retainage which is not going to be paid, using a debit/credit memo to reduce the retainage will not work. The solutions are as follows:

• Simple Invoice: If the invoice is a simple AR or AP invoice, create a retainage release invoice and then write off the invoice with a $0 check. For more information, please refer to Accounts Receivable - Releasing Retainage of AR Invoices Not Generated Through Job Billing or AP – Retainage Release.

• Subcontract Related Invoice: If the invoice is an AP invoice that was created through the Enter Request for Payment screen in the Subcontract Management module or the Request For Payment screen in CMiC Field, either one of those screens should be used to release the remaining retainage. Then, the resulting retainage release invoice can be discounted to have no outstanding amount and then paid with a $0 check. For more information, please refer to Subcontract Management - Entering Request for Payment or CMiC Field - Request For Payment.

• Job Billing Generated AR Invoice: If the invoice is an AR Invoice that was generated from the Job Billing module, use Job Billing to reduce the retainage. For more information, please refer to Job Billing Generated AR Invoices.