Workflow: Offsetting an Invoice Balance to "Other" GL Accounts

Use this feature to offset the entire or part of an invoice balance to another GL account. This may be necessary to offset a bad debt or to offset a balance resulting from a rating error that the agency decides to absorb.

You may also use this feature to zero an invoice when a small balance adjustment applied through the receipt process does not completely clear the balance.

 

The JE action button used to access this form is enabled only for users with the proper security level.

  1. Open the Customer Register for the desired customer.
  2. Expand the policy header row that contains the invoice you want to offset, and click the Journal Entry action button for that invoice.
  3. The Customer Journal Entry form displays with the following defaults:
    • The Division assigned to the selected invoice. This cannot be changed.
    • Journal Date that defaults to the current system date. This can be changed.
    • Invoice information (policy number, invoice number, invoice effective date, and invoice balance). This cannot be changed.
    • A Journal Memo based on the default Action option. This can be changed.
    • The Action option defaults to Offset Invoice Balance to Other GL Account(s).
  4. Click New on the Other GL Accounts voucher section menu.
  5. Select the desired general ledger account number (GL#) from the list.
  6. Enter the Amount of the adjustment to be made to the invoice.
  7. Change the Description if desired.
  8. The division assigned to the invoice defaults to the Division field.
  9. If the selected GL# is an income or expense account, select the desired department. Otherwise, this field is disabled.
  10. If the selected GL# is subledgered (grouped) by insurance, brokerage, finance, fee company, vendor, broker, or commission person (Comm. Person), select the appropriate subledger entity.
  11. Click Add. The Other GL Accounts header row displays a running total of the amount to be offset to the AR, for the selected invoice, and to the other GL account(s).
  12. Repeat steps #4 through #11 to add additional general ledger accounts where the offset is being distributed.
  13. Click Post.