Reset AR Cleared Items
Okay, now we will see this topic, which is reset AR cleared items. Now I’ll let you know what it is.
Okay, I have to post a document for that, invoice document, let me quickly post it. Select the customer, put in the invoice date, put in an amount of 1,000, no tax, choose the sales-laptop, and 1000, put it here, save it, just press enter. It’s saved.
18009 is the document, so let me settle this invoice. Go to the payment screen. This will serve as a good revision for you, so just bear with it. I’m going to make a full settlement of 1000 for the account. Process. Open accounts. Ending with 9. This is the one, right? I’m going to make a full payment. I need to clear this. I don’t want to make any. Okay. Now, zero. No cash discounts. I post it. I need to enter the invoice, the due date, now I can simulate again. Okay, it is simulated. Have you ever wondered what is the other simulate option, which is simulate in a general ledger?
Let me just show you. It will show you the recon account of the customer account. I think I have told you earlier. See here, the normal simulate, this option will show you the customer account number which is not a G/L account number. The recon account which is tied to customer B can be seen if you go to, simulate general ledger. See this? This is the recon account which is tied to the customer account which is 500001.
Go back, there’s a difference between normal simulate and simulate general ledger. It doesn’t really matter which one you choose. Okay, let us post this so that it is settled. Okay, now it is settled and that is supposed to be settled, let me go here, refresh. Alright, where is the document which is ending with 9? This is the one, $1000 is set as cleared. It was appearing in the open item list here. Once I make the payment, now it is cleared.
What is the payment document? 140003. This one. Here. How do I know this document is related? Do you see this document here? It is an invoice document, right? You see the clearing document? This field, that clearing document will show which payment document was used to settle this invoice, which is 143, ending in three, which is this document here, payment document. So how this both documents are cross-linked using the clearing document number here?
So now our topic is reset AR cleared items, right? What it means, just assume that you’ve wrongly posted this payment. This payment shouldn’t be posted to this account. So how are you going to reverse this payment document and make sure this invoice document is moved back to the open item list with a red flag? There’s one option here. Let me go here. That’s what you call reset cleared items. Meaning, you are reversing the cleared items back to the uncleared state. Let’s do it now. Click over here, document, reset cleared items. Okay, this is the clearing document, right? You must always put a clearing document to reset it. Now if I save, this document will go back to the original state, only resetting. Reset and reverse means you will also reverse this posting. The payment or postings will be reversed. We don’t want to do that. We only want to reset it. Now it’s reset.
Let me refresh to see the impact. Alright, see this, this is the document we reset here, ending in three. It has come to the open item list, which is red and also the invoice document, which is nine, has come from here to open items here. So now these two documents are not linked together. It is stored as separate documents. Okay, the other thing you can do is you can reverse this document totally so that the G/L balance is adjusted by 1000. You can do that by copying this. Resetting doesn’t mean the reversal. Resetting only changes this red light flag, but the document is still there so your G/L account balance still stays intact. The resetting will not adjust with G/L account balances. Do you get what I mean?
See, the G/L account balances is still here, so in order to totally reverse it, you have to go to this option here, reverse, individual reversal, put in the document and put in the reversal reason and reverse it. Only after that, the reverse postings will be posted. Okay, this is still this, right? Once you post the reverse posting, this will be debited and this will be credited. Now let us go to the cash in bank. Let’s go here. Okay. I think that’s one more zero. It doesn’t really matter. Cash in bank.
Oh, this is because I think I’m choosing the wrong one. Now, why just now I was not able to see? Because I was looking at the old report. We are supposed to look at the new report. That’s why it’s new. Since we are using new G/L, so now you can see the 1000 posted here, right? Let me just choose all items.
Alright, so the balance is 10700. So, just now when I reset, it didn’t adjust its balance here, still 10700. So, now I’m going to do a reversal, see, the balance will be reversed. Posted.
Now, let’s take note of this document. You can also display if you want to. See, the reverse postings have been made, so the cash in bank has been introduced by 1000, so let me just refresh this. See, it has become 9700, because this document has come into the picture here, so negative 1000, so it will offset this. That’s the difference between resetting and reversal.
Resetting does not adjust the G/L account balance. It only makes sure that document goes to this list, open item list, resetting the GL account. But the reversal will actually post an offsetting posting to actually adjust the G/L account balances, so this is the difference between reset and reverse. Just now, when you do the resetting, remember, the system asks you whether you want to only reset or reset and reverse. I chose only this option, right? That’s why it just reset. It didn’t post a reversal entry. So, if you want to reset and also post a reversal entry, you can choose this. So, this will turn the green light to red, and also, post a reversal entry to adjust the G/L account balances. Alright.
