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Sage 100 Steps to Transfer Customer Credit to Vendor for Payment

This article is a compilation of Sage 100 Help instructions.


Perform Accounts Payable from Accounts Receivable Clearing


The clearing process is used for Accounts Payable vendors that are also Accounts Receivable customers. You can apply the Accounts Receivable balances automatically or individually to the Accounts Payable balance. After the clearing process is completed for a vendor/customer, transactions are recorded in both Accounts Payable and Accounts Receivable.

Warning If you linked multiple customers to a single vendor, you must verify that the amount being cleared from the customer to Accounts Payable does not exceed the vendor's balance, or the vendor's account may have a negative balance.

The clearing process applies the Accounts Payable balance to the Accounts Receivable open invoice balance; it clears the oldest invoices in the account first and applies the Accounts Payable balance until it is zero. This process creates payments in Accounts Receivable with a check number of CLEARING.

Note Bank code Z is used during the clearing process.


  1. Create a Vendor (if not previously created)

  2. Like the Vendor to Customer

To link vendors to customers

* Select Accounts Payable Setup menu > Vendor and Customer Link

* In the Customer No. field, enter the customer number to link.

* In the Vendor No. field, enter the vendor number to link to the customer

entered.

* Click Accept.

The vendor is linked to the customer.


3. Select Vendor/Customers for Clearing

To select linked vendor/customers for clearing

* Select Accounts Payable Period End menu > AP from AR Clearing

* Select the A/R Transfer Amount Cannot Exceed A/P Balance Due check

box to limit the transfer amount to the balance amount.

* Select the Include Invoices on Payment Hold check box to apply the

vendor balance also to invoices on payment hold.

* In the Customer Number fields, enter the values to select customer

numbers for clearing, and click Proceed.

The vendor/customers are selected for the Accounts Payable from Accounts

Receivable clearing process.


4. Adjusted Clearing Amounts

To adjust clearing amounts

* Select Accounts Payable Period End menu > AP from AR Clearing Entry.

* In the Customer No. field, enter the linked customer number.

* Click the Select Invoices button.

* In Select Customer Invoices, select the Show Zero Balance Invoices check

box to also select invoices with zero balances.

* Select the invoices to adjust clearing amount, and click the Add Invoices

button.

* In AP from AR Clearing Entry, enter the Discount Amount and Posted

Amount fields to adjust the clearing amount for each invoice, and click

Accept.

Register and the general ledger entries posted from this register to

complete the clearing process. Note Depending on your security setup, the Daily Transaction Register may be automatically printed and updated.

Warning Do not interrupt the update process.

The adjusted amounts are cleared for the selected invoices, and a credit memo is created in Accounts Payable for the amount cleared from Accounts Receivable.

On the Vendor Maintenance Invoices and Transactions tabs, the invoice number for the clearing transaction appears as ARM-MMDD-X (where ARM represents an Accounts Receivable merge, MMDD is the month and day of the clearing transaction, and X is the sequence number for the transaction cleared on that day for that vendor). A debit amount, the total dollar amount cleared to Accounts Receivable, appears in the Trans Amount field.


Please call us for personal support at Accounting Technology LLC 703-913-3500

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