M5-AR-1110 Cash Receipts Writeoffs and Chargebacks

From BlythecoDev Wiki

Jump to: navigation, search



This enhancement allows the user to perform multiple Write Offs and Additional Charges based on each entry in cash receipt. This enhancement will create a new AR Invoice Batch based on the additions or deductions to the Chargeback input.

Installation Requirements

Prior to running this application, you will need to have Sage 500 installed. (Various versions of Sage 500 are, or can be, made compatible. For more information please call (800) 425-9843). It is recommended to have a complete and tested backup prior to installing any application on your Sage 500 platform.

Reinstalling or Installing an Update

You must first uninstall any custom (non-Sage) client/server installs via “Add and Remove Programs”. This will not uninstall any database objects, but will permit the update install to run its SQL package to update the necessary database objects. Once the previous install has been removed, you may then run the new client and server installs.

Components to the Installation

Server Installation

This adds the database stored procedures and tables required to run the integration. Run the Install Shield on the Sage 500 database server.

Client Installation

This is used to install the client components of Sage 500. Run the Install Shield Application on each appropriate workstation that the enhancement will run.

Task Setup

No additional tasks need to be setup before using this enhancement.

Data Setup

Go to Inventory Management, Maintenance, Maintain Items, and setup a non-inventory item for each writeoff or chargeback that you want to classify. These items will be used as “Reasons” when entering a Cash Receipt Write-off or Chargeback. Note: a descriptive item ID and description will help to identify these items as a Write-off, Adjustment, Chargeback or another Reason Code. See the example provided below.


Go to the GL Accounts tab and setup the applicable GL Accounts just as you would with any other non-inventory item. (For example, the same as a finance charge).


Once the non inventory items have been defined, go to Process Cash Receipts and begin to use this enhancement.

Process Cash Receipts

1. Go to Accounts Receivable > Activities > Process Cash Receipts.
2. Begin a new batch then select the Enter Cash Receipts button.
3. While on the Payments tab, select or enter a Customer.
4. Enter a Payment Reference.
5. Enter the payment details


6. Select the Application Tab
7. Note the new Writeoffs/Chargebacks button on the right side of the form.
8. Select any invoices to which the payment will be applied.


9. Select the Writeoffs/Chargebacks button and the Payment Application Detail form will load (see next image).


10. Select or key-in a Reason (one of the items defined in the item maintenance section of this document).
11. Select or key-in an Item (the Invoice Number and CharOff GL Account columns are auto-populated).
12. Enter an Amount (positive or negative amounts may be entered).
  • a) When a negative amount is entered in the Payment Application detail of the Charge Back/ Write Off screen, a corresponding Credit Memo will be created.
  • b) When a positive amount is entered in the Payment Application detail of the Charge Back/ Write Off screen, a corresponding Debit Memo will be created.
13. Enter an optional Comment.
14. Note, any number of rows may be created and if a row is no longer wanted, it may be deleted by going to the ‘DEL’ column and selecting the checkbox to the left of the row you no longer wish to keep then clicking on the Delete Selected button.
15. When finished click on the “OK” button and you’ll be returned to the main Cash Receipts screen.
16. The Cash Receipt transaction is completed as usual. Select the Finish button (green check) then close the form.
17. Once back on the batch form, select the Register / Post button.
18. After the Cash Receipts batch has been posted, you will see a confirmation message letting you know that the Chargeback Invoice was created successfully.


Process Invoices

Once the Chargeback has been created, a corresponding invoice will automatically be created. If the chargeback/writeoff amount is positive, a corresponding debit memo will be created. If the chargeback/writeoff amount is negative, a corresponding credit memo will be created.

1. Go to Accounts Receivable > Activities > Process Invoices.
2. A new batch is automatically created with the description “Generated by Cash Receipt Batch xxx”.
3. Select the Enter Invoices button. Once the form loads, select the lookup and then select the associated invoice. Note that a comment was automatically added to the header tab with the content “Cash Rcpt Charge Back”.



4. Select the Detail tab. Note the item is the reason code that was selected when the writeoff/chargeback was created in Process Cash Receipts.


5. Select the Finish button then close Enter Invoices to go back to the main batch form.
6. Once back on the batch form, select the Print Invoices button.
7. Note that a debit memo is created in cases where the writeoff/chargeback amount is positive and a credit memo is created when the writeoff/chargeback amount is negative.


8. Continue to Register/Post the batch as usual.
Personal tools
MediaWiki Appliance - Powered by TurnKey Linux