Debit Line Items
•Apply customer initiated debits at time of payment entry, creating a debit memo(s) for the amount(s). •Debit amount plus check amount can be applied to open invoices, referencing check number. •Once approved, apply credit memo(s) to the debit memo(s).
This presentation walks you through the proposed changes to the Pacioli/400 Accounts Receivable Cash Entry process to add a feature called “Debit Line Item” support.

Scenario:  You have issued invoices, the customer is paying invoices and you continue to issue new invoices.  The customer determines that there is an issue (maybe defective material) with a previously paid invoice.  As the customer is preparing a new check, he includes a debit item for the previously paid invoice on the new remittance.  As you enter the payment information, you want to record the amount the of this debit and include the amount as you apply payments to invoices.  You will deal with the debit later.

For tracking purposes, you want to keep the customer’s reference number of their debit and the details of when this occurred.  These transactions will appear on customer statements, in the aging report and in the inquiries.