Credit Memos (Invoices)

□	Credit Memos are simply Sales Invoices that have minus Quantities.

•	The final Total of a Credit Memo in a Minus Value.

•	This is because any positive value - the Price of an item - that is multiplied by a minus value - the Quantity - will result in a minus value.

•	As such, you eventually must Allocate a Credit Invoice to an existing Sales Invoice, thereby "paying it off", just as you would a Receipt.

•	So, Credit Memos are generally used to "Write off" a Sale, or to provide a Subscriber with a "Credit" in the form of an Invoice adjustment, to resolve a dispute.

□	Creating a Credit Memo (Invoice)

•	The Automatic Way - Crediting an Existing Invoice:

•	Locate the correct Invoice using the Invoices look-up list on the left of the Invoice Form.

HelpFilesInvoice2Credit

Original Invoice to be Credited

•	After locating the appropriate Invoice, Click Credit Invoice Icon on the specific Invoice for which you want to issue a Credit.

HelpFilesCreditInvoiceIcon

•	If the selected Invoice has a Receipt - representing a Full or Partial Payment - that has already been Allocated to it, you will see an Allocation Applied message.

HelpFilesInvoiceHasReceiptApplied

▪	Click OK and the process will be abandoned.

▪	You will have to use the Manual Way method explained below to manually create the needed Credit Memo (Invoice).

•	Otherwise, the Create Credit Memo? dialogue box will appear.

HelpFilesCreateCreditMemoDialog

•	Select one of these two generation options:

Check the Auto Generate option (as shown in the illustration above) and Click Yes to reverse all of the Detail Line Item entries on this Invoice by creating a new Credit Invoice with all of this Invoice's prices the same - but with all of the quantities reversed - and then automatically Allocate this new Credit Invoice to the selected Sales Invoice, and finally display the Credit Invoice showing that it has been fully Allocated.

HelpFilesInvoiceCreditMemo

Automatically Generated Credit Memo

2.	Check the Selective Generation option on the Create Credit Memo? dialogue.

HelpFilesCreateCreditMemoDialogSelective

▪	Click Yes which allows you to select one or more (even all) of items from this Invoice that will be included in the Credit Invoice and the option to apply the selected items automatically to Invoice or leave this new Credit Invoice as an "on account" (UnAllocated) credit.

▪	The Credit Memo Generation Form will be displayed.

HelpFilesInvoiceCreditMemoSelect

Credit Memo Generation Form

▪	Check or Uncheck the items on the Credit Memo Form based on your needs.

o	As an example: If your intention is to provide a credit on the Parts but not on the Service Call charge you would Uncheck the Service Call item (it will NOT be credited) and leave the Parts item Checked (it WILL be credited).

▪	Choose how this Credit Memo will be posted.

o	Post - Create credit memo and leave unapplied on account - creates a Credit Memo (Invoice) containing credit line item(s) for the specific items you've checked and it is not Allocated to any existing Invoice.

o	Post & Apply - Create credit memo and apply to invoice - creates a Credit Memo (Invoice) containing credit line item(s) for the specific items you've checked and Allocates it to the selected Invoice.

•	The Manual Way - Manually creating a Credit Memo (Invoice).

•	Because Credit Memos are simply Sales Invoices that have negative Quantities, a Credit Invoice is created exactly as a Sales Invoice, except that the Quantity column for each item is modified to show a negative ("-") value.

•	The only exception to this is: If an item had a negative Quantity (like a Discount given - see the example below), the negative Quantity for that item is entered in the Credit Memo (Invoice) as a positive Quantity.

HelpFilesInvoice2Credit

Original Invoice to be Credited

•	In the example Invoice above:

o	Four items were charged to the Subscriber and a 10% Discount given.

o	Those Sale items originally had positive Quantities

o	The Discount had a negative Quantity.

•	The resulting Credit Memo (Invoice) has negative Quantities for the Sale items and a positive Quantity for the Discounted item.

HelpFilesCreditMemo

Manually entered Credit Memo

▪	This manually created Credit Memo (Invoice) must then be Allocated to the appropriate Sales (Invoice) to complete the transaction.