At the beginning of this month we received an email from Sage saying we could no longer apply commission credits we received against invoices unless the commissions were used in the same month they were issued. (They sent the email on October 1st, when it was too late to take those credits in the same month they were received...off course! No prior notice whatsoever.) And that Sage would be issuing a check for any outstanding commissions/credit memos instead.
Most folks have already thought about a solution to clear those credits, but this is new for us. I really didn't want to do an AR to AP Clearing - that just never has worked well for us. And I didn't want to take the time to "adjust" the 23 credits off of their Vendor File. So instead, when the check was received, we credited it to a clearing account in Cash Receipts. Then I set up a new bank account, using that same clearing account as the GL account for the bank, and labeled the new checking account as "Sage Clearing Account." And proceeded to use the new checking account in manual check entry to "pay" those outstanding credits, with the check number from the Sage check issued to us, and using a negative amount as the check amount. Finally I let the system select the credits automatically. I did have to delete a few invoices, but that turned out to be a MUCH easier solution than almost anything else I could think of. Plus now I have a bank account set up where I can keep track of not only the Commissions Sage has paid for, but also the checks we are receiving from Sage.
Probably you have your own process in place already, but if you don't, this was an easy way to clear a lot of credits all at once!
------------------------------
Sue Bennett
Jack of All Trades, Master of 1
Bennett/Porter & Associates, Inc.
Tigard OR
503.620.3484
------------------------------