This is typically done when a customer has made an overpayment and because the amount is so low you will not issue a refund, but rather write the amount off since it is such a small amount.
E.g.: Customer #1001 has overpaid $0.04 to their account. You do not wish to apply this amount to an invoice(s), you would rather write the amount off since it is such a small mount.
Important Facts to Know
Reference - This field corresponds to the number given to the cash on account at the time of its original entry.
A customer inquiry, batch balance report, or open credit report will show you what this reference number is.
Date - This date field is very important when you are adjusting items at year end. This date should reflect the
last day of your year-end if these entries are being made at a later time. The reference field must reflect the invoice number and the date field must reflect a date within the accounting period entered on the first screen.
How To Adjust An Invoice (Gst Only)
E.g.: Customer 1001 was charged $596.75 ($535.00 + $30.00 GST) on invoice #1216. The customer should not have been charged the GST.
Screen #2
The GST amount was filled in on the first entry. The second entry is the reversal of the revenue account only.