Used for customer credit or return items, Credit Invoices update inventory and the Customer’s account balance.
Credit Invoices
At the Select an Invoice screen found at A/R / Invoice, there are two selections related to credit situations: Credit and Reverse. More on reversing Invoices can be found here.
This is used when product is returned or a billing error is made and voiding is not appropriate (such as an Invoice generated in a prior month). Select Credit and fill out the screen like a regular Invoice using POSITIVE quantities.
As this new Invoice is saved, the quantities are negated.
Invoices created by selecting Credit are displayed in blue in the Select an Invoice window.
Note: The Credit Invoice document displays Credit Memo at the top and bottom of the printout, signifying a balance is not due. Additionally, Invoices created using the Credit option display in blue on the Select an Invoice window.
Reconcile Credit Invoices
This function at A/R / Reconcile Credit Invoices allows Credit Invoices and/or Unapplied Cash to easily be applied against open Invoices. It can be run at any time during the month and multiple times if desired. It is recommended to use this utility prior to assessing Finance Charges and printing Customer Statements.
Any Customer with Credit Invoices and/or Unapplied Cash (if selected) as well as open regular Invoices is automatically selected or specific Customers may be selected by using Select or Classification.
If the Preview Payments option is checked when Post is selected, the first Customer is displayed for review. If this option is not selected, zero dollar payments are automatically posted for applicable Customers without further review. All credits are applied (oldest to newest) to open Invoices from the top down in the payment grid (just as Auto Apply does at the regular Payment on Accounts screen).
If the option to Use U/A Cash was selected, then it is applied in addition to the Credit Invoices. The grid loads in Standard order - credits first, finance charges second, then other charges by due date. The Group Customers By Location option orders the Customers by Location ID first then Customer ID as the payments are processed. With this option unchecked, payments are ordered by Customer ID.
A Reconcile Credit Invoices Prescan report is available to Preview or Print. This report includes Unapplied Cash, the Customer ID, Customer Name, Invoice Number, Invoice Date, Due Date, and Unpaid Balance, and is grouped and sorted in the same manner as when previewing payments.
Save creates a zero-dollar payment applying the credits to open Invoices. Skip does no posting and displays the next applicable Customer.
Apply a Credit Invoice to an AR Balance
When the Customer has a credit Regular balance, that credit may be applied to the Customer's open charge. There are multiple scenarios for how a credit Invoice may be applied. The credit may be applied at Accounting / A/R / Payments or by selecting the Payment on Account(s) shortcut icon.
Add a Payment for the Customer. Tag any Invoices in the grid that should be paid by the credit, including the credit Invoice and set the Pay Method to Adjustment. For all scenarios listed below, no Payment Amount should be entered in the top portion of the Payment screen.
Scenario 1: The credit Invoice is for the same amount as the Invoice(s). Select Save to complete the Payment.
Scenario 2: The credit Invoice is for more than the Invoice(s) being paid. Edit the amount of the Payment amount on the credit line to offset the amounts being paid. Click Apply then Save.
Scenario3: If the credit Invoice is less than the selected Invoice(s), edit the amount of the selected Invoice(s) to offset the amount of the credit, or select Auto Apply to allow Agvance to edit the amounts automatically. Click Apply (if not auto applied) then Save.
Once saved, the selected Invoice(s) will be marked as paid and the Customer balance reduced.
