Total
Legal Accounting 3
SECTION 5.3.3 - CREDITOR
ADJUSTMENTS
USAGE: To apply ad hoc debits and credits to Creditors.
This is useful for shifting balances between accounts, and for making entries that
do not affect the bank. This function is capable of shifting balances from
Creditor to Creditor and Creditor to General Ledger.
DISCUSSION: Creditor Adjustments or Journals are used in many
procedures or adjust or fix balances. There are several examples:
·
If
you wish to write off a Creditor’s balance you could enter a Creditor to
General Ledger adjustment where the General Ledger account is the Creditor
Write-off account.
·
Special
Charges such as interest can be applied via adjustments.
·
If
you have purchased from the wrong Creditor, you should normally enter a Return
and a new Purchase, but if the Purchase has already been paid, you can shift
the balance to the correct Customer by a Creditor to Creditor adjustment.
When you start the CREDITOR ADJUSTMENT
program, the computer will initially ask for a Creditor code. Insert the code
and press <Enter>.
To return to the CREDITOR DATA ENTRY MENU, press <ESC>.
To search for a Creditor, press <F9>. For further details on searches, see SECTION 1.2.
Having chosen a Creditor, the screen will display
the name and address and recent balances, in full at the top of the screen. The
screen will appear as follows:
By default T.L.A. will offer the Creditor to General
Ledger option. If you wish to continue, enter a General Ledger account number
(eg Creditor Write-off) and press <Enter>. You can also use <F9> to search for a General Ledger account.
There are certain accounts that T.L.A. will stop you
from posting to, eg Bank, Trade Creditors. These are only posted to via other
programs, eg Purchasing.
If you wish to enter a Creditor to Creditor
adjustment, press <F2>. The screen will change to:
Here you can choose a second Creditor to post to.
You can use <F9> to search for a Creditor. This
must be a different Creditor account to the first one.
Irrespective of whether you are posting to a General
Ledger account or another Creditor, when you choose the second account, T.L.A.
will display the current balance of that account. The format depends on what
kind of account it is.
The screen will now split into 3 parts. The top
section is the Creditor details, the middle section shows the second account’s
details, and the bottom section allows you to enter the details of the
transaction.
An example is:
The fields available are:
DATE This is date you wish to make the transaction apply.
The date does not have to be in the current period, but if you backdate a
transaction, T.L.A. will not let you choose a date in a closed period. To close
a period, use the CALENDAR function.
(See SECTION 7.1.6.)
COMMENTS Here you must enter the reason for the Adjustment.
VALUE This is the value of the transaction. By default, this
is a credit amount, ie it will increase the balance of the first Creditor. To
change it to a credit value, press - . When you leave this
field, T.L.A. will update the NEW
BALANCE fields on both accounts (sections 1 and 2 of the screen) to show
you what the effect of you entry would be, but the balances will not actually
be changed until you choose to update.
<F8> If you wish to return to section 2 of the screen,
press <F8> or <CsrUp> at the date field. This may be more efficient than
pressing <ESC> and restarting the
transaction.
<F9> This will initiate T.L.A.’s calculator. When you
press <ESC> from the calculator, the
result will be inserted into the value field.
<ESC> To abort the whole transaction, press <ESC>. You will then be returned to the Creditor code
entry routine.
To finally update your transaction, press <F10>. You might be asked if you wish to allocate the
transaction depending on the transaction type. If you choose Y, you will be transferred to the relevant allocation program and on completion,
you will be returned to the adjustment program.
Files updated by the Creditor Adjustment program:
Creditor
master-file: The first Creditor’s balance
will be increased by the value of the transaction. If you are entering a
Creditor to Creditor transaction, the second Creditor’s balance will be
reduced.
Creditor
transaction-file: A transaction is
created to match each balance updated.
Creditor
master-file: If you are entering a
Creditor to Debtor transaction, the Debtor’s balance will be increased.
Creditor
transaction-file: A transaction is
created to match the balance updated.
General
Ledger master-file: If you are entering a
Creditor to General Ledger adjustment, the relevant General Ledger account will
be updated. If you are entering a Creditor to Creditor adjustment, no General
Ledger involvement is required. However, if you are entering a Creditor to
Creditor or Creditor to Debtor adjustment, the Trade Creditors and, where
relevant, the Trade Debtor’s accounts are adjusted.
General
Ledger transaction-file: A
transaction is posted for each transaction line.
