Sometimes when allocating cash to a Accounts Receivable invoice or Job Receivables certificate in Cash Manager (or a source ledger), mistakes are made, and the cash is allocated to the wrong invoice or certificate, or the amount of the allocation is wrong. You can use Adjust Cash Receipt Allocation to correct the wrong allocation, without changing the overall Cash Manager check value or source ledger check value.
You can reverse the original allocation and select one or more different open invoices or open certificates for payment.
You can adjust the amount of the original allocation for an invoice or certificate to a different amount, and allocate the difference to one or more other open invoices or open certificates.
Any adjustments have no effect on the General Ledger.
There are some restrictions:
The adjustments are restricted to the same customer or job; that is, you cannot adjust an amount from an invoice for one customer to an invoice for a different customer. The same applies for certificates and jobs.
Inter-Company, Bad Debt, Tax At Pay and Pre-Paid Invoices are outside the scope of this functionality. Any invoices and certificates that fall under these categories are excluded.
The check fiscal date must be in an open Accounts Receivable or Job Receivables period and an open General Ledger period.
There can be no adjustment across sectors.
To adjust an allocation
Go to Cash Manager > Cash Transactions > Adjust Cash Receipt Allocation.
Click Add.
Use the lookup to choose the check analysis you want to adjust. The lookup shows all posted check analysis lines of type AR or CS which meet the criteria for adjustment.
Click Save.
Click the link on the Check Reference column.
This screen lets you adjust the original allocation.
The Payments tab shows the check details.
The To Adjust tab initially displays the original allocations for the cheque.
The Adjustments tab shows all adjustments made.
An adjustment may involve only invoices or certificates that the check has already been allocated against, or can include invoices or certificates not allocated to previously.
To add an invoice or certificate that has not already been allocated to, on the To Adjust tab click Add.
Select the invoice or certificate using the lookup on the Internal Reference field.
Click Save.
If the adjustment is straightforward – for example if you want to move the full allocation from one invoice or certificate to another – select both lines, choose Adjust Allocations from the action menu and click Apply Action.
You can also use Adjust Allocations to reallocate the original allocation to two or more invoices or certificates with total balances that equal the original allocation. You cannot use it for part allocations.
To adjust the allocation for a line manually, click Open, change the value in the Update Allocation field, and click Save.
The Unallocated field in the header shows how much you still need to allocate.
When you have adjusted the allocations, click Next.
This returns you to the Check Analysis Lines screen.
If the original amount allocated for any check analysis line has not been fully re-allocated, the line Status column shows Adjustments Incomplete.
If the adjustments for a line are complete, that is, the original amount allocated has been fully re-allocated, the line Status column shows Adjustments Ready to Process.
Select the lines that are ready to process.
In the action menu, choose Process Adjustments and click Apply Action.
When the adjustments have been processed, the check analysis line status changes to Processing Adjustments Complete.
The process generates new check analysis lines in the original batch. You can see the history of changes to allocations on the Analysis Lines tab of the check details. The Adjustment column highlights the adjustments made. For example:
