Understanding Negative Receipts

Circumstances might occur when you have to enter a negative receipt. For example, you have to record a credit card refund to a customer that is greater than the credit card payment. You can enter a negative receipt for the refund amount and offset it against a credit memo so that the general ledger accurately reflects the credit to the bank account and the debit to the A/R trade account. When you enter a negative receipt, the system generates a receipt detail record (F03B14) and updates the pay status of the credit memo to P to prevent it from being refunded again.

You can also enter negative receipts to:

• Make a negative adjustment directly to the general ledger, such as a cash transfer.

• Enter an outgoing wire transfer.

• Record an NSF receipt as a general ledger receipt.

You use the Standard Receipts Entry program (P03B102) to enter negative receipts. You set a processing option to enable the entry of negative receipts.