A User may enter a Credit Request and specify a particular customer invoice for which a credit memo will be generated. This may be done for invoices that have or have not been partially paid with a customer payment or a Credit Memo. For the User to be able to create a Credit Request for a partially paid invoice, the Ability to Credit Off Partial Invoices User Security Option must be activated for the User Group assigned to the User creating the Credit Request.
For invoices where no payments or credits have been applied, once the Credit Request has gone through the sign-off process, the Credit Memo is created and automatically applied to the invoice number entered in the Credit Request form. User Group Security controls the amounts that will be allowable for the final Credit Memo. An actual Credit Memo is not posted to the general ledger until a User with the appropriate permissions approves and presses the Save button to generate the Credit Memo.
For invoices where payments or credits have already been applied, once the Credit Request has gone through the sign-off process, the User generating the credit will be prompted to write off the balance of the invoice to a miscellaneous G/L account number. If your company does not want to allow Users to write off an invoice to a Miscellaneous G/L Account, the Credit Template method should be used in partially paid invoice situations.
There are three ways to begin a new Credit Request for a specific Invoice; all options are listed below.
1. Begin The Credit Request:
a. Navigate to the Main Application Tree and select Accounts Receivable/Credit Request option, then click the New button located at the lower right of the Credit Request List.
b. Navigate to a Customer Explorer record; select Credit Requests from the customer tree; right-click and select the New Credit Request option.
c. Navigate to a Customer Explorer record; within the Active Pane, highlight an open invoice then right-click and select the New Credit Request option. If this option is used, ignore steps 2 and 3 and proceed to step number 4.
2. Select the Customer - Once the Credit Request form is displayed, select the Customer number for the request. If the Credit Request was started from the Customer Explorer, the customer number will automatically be populated.
3. Select the Invoice Number - In the Invoice# field, select the Invoice to be credited off from the drop-down list.
4. Fill in the Credit Request form – Once the invoice number has been selected, the Requested Amount will automatically fill in with the amount of the Invoice balance. Enter the remaining information on the Credit Request form.
Reason – This is a required field; select the Credit Reason from the drop-down list in this field.
Memo – The User may enter a note in the Memo field to describe why the invoice balance is being requested for a credited-off. This field is optional. If the Credit Memo is to be printed and sent to the Customer, this information will be printed.
Assigned To – This may automatically fill with the next User who is responsible for signing-off on the Credit Request. If this field does not auto fill, the User may select a name from the drop-down list to which the Credit Request will be assigned for further processing. If the User creating the Credit Request has the appropriate permissions, the credit memo may be generated by pressing the Save button located at the lower right of the form.
5. Credit Request Sign-Offs - On the Sign-Off tab of the Credit Request, the User will click the Sign Off 1 button on the Credit Request then the Save button located at the lower right of the form to complete the Credit Request. If the User creating the Credit Request has the appropriate permissions to generate credit memos and that User’s credit memo limit is equal to at least the total amount of the Credit Request, clicking the Save button will prompt the User with a message asking if they are ready to create the Credit Memo. If the User’s credit memo limit is less than the requested amount, the Credit Request will remain in the Credit Request List until a User with the appropriate credit memo limit opens the Credit Request and clicks the Save button to create the Credit Memo.
6. Generating the Credit Memo - The Credit Request will be displayed in the Credit Request List if the credit memo was not generated by the User in Step 5. If this is true, the User assigned to the Credit Request will be responsible for monitoring the list and moving the Credit Request on through the sign-off process. Once all sign-offs have been completed (according to your company policies), the Credit Memo may be created and posted to the customer’s account.
The User who will generate the credit memo will open the Credit Request and click the Save button located at the lower right of the Credit Request form. A message is displayed asking the User if they are ready to create the credit; click the Yes button to accept. Once the Yes button is selected, the application creates and posts the Credit Memo which is now available on the Customer Explorer record to apply to an invoice.
