Modify a Cash Receipt

This table summarizes the purposes and related details for modifying a Cash Receipt (CR).

Purpose for modification	Method details
Reclassify unearned revenue as earned revenue	Automatic - To have the system automatically generate a modification transaction that reclassifies revenue, you must fill in the Reclassification field on the original Cash Receipt transaction. You can also specify that the automatically generated transaction be put on hold to allow for further review or changes by checking the Hold Transaction indicator on the original receivable transaction. Manual – You can manually modify a cash receipt to reclassify collected revenue by reducing the amount of the affected accounting line and adding a new line with the new event type.
Netting credit balance	Automatic - If the automatic netting option is in use, the system can automatically apply overpayments tracked by the Unreserved Credit Balance to a customer account. The system subtracts the amount of money being applied to the new obligation from the accounting line on the cash receipt that created the overpayment and creates a new vendor/customer line to record an equal positive payment to a customer account. The system uses Auto Apply to reference the receivable lines in order. Manual - you can manually apply netting to either the Unreserved Credit Balance or to the Reserved Credit Balance. Do this by making the above entries manually to a Cash Receipt transaction.
Increase collection amount	Follow common transaction rules for modifying a transaction. Select the appropriate adjustment reason.
Decrease collection amount	Follow common transaction rules for modifying a transaction. Select the appropriate adjustment reason.
Change accounting distribution	Follow common transaction rules for modifying a transaction. Select the appropriate adjustment reason. For accounting lines specifying a line type of Principal, the system will warn you to make potential modifications on the existing interest and late fee lines to match what you changed on the principal line.

The following scenario illustrates correcting a clerical error that results in liquidating the incorrect receivable. The scenario will illustrate the creation of a cash receipt modification that represents correction to the original entries reference to a receivable (reduce original receivable reference and reapply to a different receivable reference).

You determined that the CR transaction that applied the $150.00 payment to RE 10A EXTERNAL_RE_2 was incorrectly applied. There is another RE transaction (RE 10A EXTERNAL_RE_3) for $150.00 that needs to be liquidated first.

To modify a RE, perform these steps:

Open the CR transaction that requires modification in the Transaction Catalog.
Perform the Edit action.
Reduce the incorrect reference/payment.

Go to the Vendor line that applied payment against the wrong RE transaction.
Select the Auto Apply check box.
Enter 0.00 in the Line Amount field.
Enter a Reason.

Apply the payment towards the correct reference.

Insert a new Vendor Line.
Select the Auto Apply check box.
Enter 150.00 in the Line Amount field.
Enter the correct RE transaction Code, RE transaction department code and RE transaction ID.

Perform the Auto Apply action at the Header level.
Navigate to the accounting line(s) of Vendor Line 1 to ensure that the payment has been reduced. The Line Amount should be $0.00 and the reason code should be inferred from the vendor line. If the Ref Type field is equal to Final, change it to Partial.
Navigate to the accounting line(s) of Vendor Line 2 to ensure that the payment has been applied to the correct RE.
Perform the Validate action.
If errors exist, fix the errors and repeat Step 8. If no errors exist, then continue with Step 10.
Perform the Submit action to submit the transaction.