You can do a Debit memo to zero out the open deposits.  When in Distribution, the system defaults to the Sales Adjustment account (defined by your company in AR, Utilities, Maintain AR Parameters-Posting Accounts)

1. Select A/R, Transactions, Debit Memos. Enter the customer ID or use 'Lookup'.
2. Enter the date and reference.
3. Select the down arrow next to "Apply to". Debit Memos can be applied to invoices, finance charges, open credits or deposits. If the Debit Memo is applied to an invoice, enter the invoice number or use 'Lookup' to select the invoice number from the list.
4. Enter the dollar amount and click 'Distribution'.
5. Distribute the amount to the appropriate accounts, click 'OK' when fully distributed.
6. Select 'Post'.

It is an accounting decision on your part where you want to distribute – it you want Sales adjustment, Bad Debt, or a particular Sales account you have defined.  If you are not sure where to distribute for your company, please consult with your accountant.

If you would like additional information on Debit memos or credit memos please go to SageKB.com and search on the following articles.

How to write off open credits or open deposits not used by customers (39650)

How to enter debit memos and credit memos in Accounts Receivable (18245)

Sincerely,

Coleen

You can do a Debit memo to zero out the open deposits.  When in Distribution, the system defaults to the Sales Adjustment account (defined by your company in AR, Utilities, Maintain AR Parameters-Posting Accounts)

1. Select A/R, Transactions, Debit Memos. Enter the customer ID or use 'Lookup'.
2. Enter the date and reference.
3. Select the down arrow next to "Apply to". Debit Memos can be applied to invoices, finance charges, open credits or deposits. If the Debit Memo is applied to an invoice, enter the invoice number or use 'Lookup' to select the invoice number from the list.
4. Enter the dollar amount and click 'Distribution'.
5. Distribute the amount to the appropriate accounts, click 'OK' when fully distributed.
6. Select 'Post'.

It is an accounting decision on your part where you want to distribute – it you want Sales adjustment, Bad Debt, or a particular Sales account you have defined.  If you are not sure where to distribute for your company, please consult with your accountant.

If you would like additional information on Debit memos or credit memos please go to SageKB.com and search on the following articles.

How to write off open credits or open deposits not used by customers (39650)

How to enter debit memos and credit memos in Accounts Receivable (18245)

Sincerely,

Coleen

I couldn't have said it better Coleen.  Thanks for the details.

Thank you!

Hi Siglia, if the above suggested answer helped, please do mark it as verified  for the benefit of others in this forum . Thank you!