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.