A User may enter a Credit Request and specify a particular customer invoice (where credits or payments have been applied) for which a credit memo will be generated. For the User to be able to completely process 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 partially paid invoices, 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 invoice to a Miscellaneous G/L Account, a Credit Template should be used in partially paid invoice situations. This is also controlled by the User Group Security. For these User’s, make certain their User Group permissions do not include the selection of the “Ability to Credit Off Partial Invoice”.
Note: Once this process is complete, a credit memo is not created and applied to the invoice, rather a journal entry is made to credit the customer’s accounts receivable and debit a miscellaneous G/L account to pay off the invoice balance.
There are two ways to begin a new Credit Request, both options are listed below.
- Navigate to the main module tree and select Accounts Receivable/Credit Request then click the New button located at the lower right of the Credit Request List.
- Navigate to a Customer Explorer record. In the list of open invoices, highlight the invoice you want to credit off, right-click and select the New Credit Request option.
- Select the Customer - Once the Credit Request form is displayed, the User will select the customer number for the request. If the Credit Request was started from the Customer Explorer, the customer number will automatically be populated.
- Enter the Invoice Number – If the Credit Request was initiated from the Accounts Receivable/Credit Request List, in the Invoice# field, click on the drop-down arrow to the right of the field and select the invoice number for the credit request. If the Credit Request was initiated from the Customer Explorer record following the instructions on the previous page, the invoice number field will auto-fill.
- Fill in the Credit Request form – Once the invoice number has been entered, the Requested Amount will automatically fill in with the invoice balance amount. 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.
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 must 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 clicking the Save button located at the lower right of the form.
- Fill in the Credit Request form – Once the invoice number has been entered, the Requested Amount will automatically fill in with the invoice balance amount. 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.
- 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 must 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 clicking the Save button located at the lower right of the form.
5. Sign-Off – Navigate to the Sign Offs tab. If the User creating the Credit Request does not have permission to generate the credit memo, click the Sign Off 1 button. The sign-off amount will automatically fill in depending on the Users security permissions. Click the Save button located at the lower right of the form. The Credit Request will now appear in the Credit Request List accessible from the Accounts Receivable menu for further processing by the User assigned to the Credit Request.
If the User creating the Credit Request has the appropriate permissions, the credit memo may be generated by first clicking on the Sign Off 1 button on the Sign Offs tab then clicking the Save button located at the lower right of the form.
6. Credit off the Invoice Balance - Once all sign-offs have been completed the Credit Memo may be created and posted. If the User creating the Credit Request has the appropriate permissions, the credit memo may be generated by first clicking on the Sign Off 1 button on the Sign Offs tab then clicking the Save button located at the lower right of the form.
The User signing-off and creating the credit memo must select the GL Account to which the invoice balance will be applied.
The User generating the Credit Memo will first sign-off on the Credit Request then click the Save button located at the lower right of the form. Once the Save button has been clicked, the User will be presented with a confirmation message for crediting off the invoice. Click the Yes button to complete the credit.
After clicking the Save button, the Credit Off Invoice Balance form will be displayed. The user must select a G/L Account and Category for writing off the invoice balance. A note may be entered into the Memo field. When finished, click on the OK button located at the bottom of the form.
A confirmation message will be displayed. Click the Yes button to proceed.
