How to Setup your Credit Adjustment GL.

Before you process payments in the system you need all your tran codes and gl numbers assigned for good history.  The system handles payments and adjustments.  When an overpayment occurs, it can result in a credit balance and that money needs to be accounted for.  You can setup as many or few credit accounts as desired.  When an overpayment occurs, the user selects the CREDIT account entry from the list below.  (WHEN a credit occurs in a BATCH posting the system automatically defaults to the first CREDIT entry from this list). 

I credit typical effects cash and a liability account.  We have seen users substitute a revenue account if a liability account does not exist in their chart of accounts.  That is a decision to be made with your accountant.

When a credit occurs the system will make an Debit and Credit entry with the gl numbers you enter below.  When that credit is APPLIED (used), the system will reverse the original entry and apply it to the charge being paid.

1. First,  click system setup on the navigation tree. Click "Credit-Adjustment GL Setup" just like the following picture:
2. Once you click on "Credit-Adjustment GL Setup" this Browse Window will appear:

3. The only thing users need to worry about is having your DEBIT and CREDIT fields changed with the actual accounts. This needs to be finished BEFORE processing payments.

All of your credits (overpayments) are not yet assigned to specific trancodes so when a credit recieved (cr rec), the extra money must be held somewhere (liabilities perhaps) and the money matching the amount due is assigned to CASH (your main account for revenues) because cash increases with a debit.

REQURED entries for:
CREDIT - as many as you want but at least 1
REFUND - This is used to record a refund zeroing our a credit balance on a customer's account.  So the entry is typically Debit CASH and Credit a "refund liability" account.  That allows you to write a check from your accounting software that will reduce CASH and offset the Refund Liability account.
DEPOSIT - If you plan on using the system to pull bank deposit entries then you need to create as many DEPOSIT entries for the various banks you deposit monies into.
OVERSHORT - If you maintain an over/short account for balancing differences then you should enter gl numbers for that as well.

DO NOT DELETE all the DEPOSIT or OVERSHORT entries.  There MUST be at least one of the required entries in this list.

Entries Not Needed