Credits with Items

This assumes you want to create a credit for an item with a payment applied to it.  The credit may be for both the client and the vendor, or one or the other.

We always suggest that a credit be created whenever money have been received/paid for a specific item rather than just moving the payments to an alternate item.

This creates an audit trail that's easy for the client (and you) to see.

 

There are two options when creating a Credit item:

  1. Create a Credit Item for Invoiced Item
  2. Create a Credit For An Item That Has Not Been Invoiced

 

1. Create a Credit Item for Invoiced Item:

  • Select Items
  • Select Edit to view the Item you want to create a credit for
  • Select the Create Credit Invoice link
  • “Credit” will automatically be added in the beginning of the description
  • This will cause Purchase and Selling Amounts to be a negative (credit)
  • Manually change any "Other Costs" to negative
  • If you need to add restocking fees, add to "Other Costs" as a positive amount (this will reduce the credit amount)
  • Change the component number to the next item in sequence
  • Select Save
  • Confirm that the amounts of the credit items = the original items (less any restocking fees or changes in freight, etc.)

 

2. Create a Credit For An Item That Has Not Been Invoiced

 If the item has NOT been invoiced, the item must be Cloned to create a Credit item.  

  • Select Items
  • Select Edit to view the Item you want to create a credit for
  • Select Clone (the new item will not have a proposal, order or invoice#)
  • Add “Credit” to the beginning of the description
  • Change the Selling and Purchase Quantity to a negative
  • This will cause Purchase and Selling Amounts to be a negative (credit)
  • Manually change any "Other Costs" to negative
  • If you need to add restocking fees, add to "Other Costs" as a positive amount (this will reduce the credit amount)
  • Select Save

Confirm that the amounts of the credit items = the original items (less any restocking fees or changes in freight, etc.)

Add the new item to the original Proposal (if the item was on a Proposal)

  • Select to View the New Credit Item
  • Enter the Original Proposal # in the Add to Proposal field
  • Click the Add to Proposal link (the words Add to proposal underlined)
  • The Item list will be displayed

 

Add the new item to the original Order

  • Select to View the New Credit Item
  • Enter the Original Order # in the Add to Order field
  • Click the Add to Order link (the words Add to Order underlined)
  • The Item list will be displayed

 

Vendor Invoice

  • Select to View the New Credit Item
  • Enter the Credit Invoice # from your vendor in the Vendor Invoice #
  • Enter the Order # if your vendor didn’t provide a Credit Invoice #
  • Select Save

 

Apply the Credit

  • When you print the next check to the vendor select the Vendor Credit item also
  • This will reduce the amount of the check to the vendor by the credit

Alternate

To apply the credit to an item with an open balance

  • Post a negative manual check to the credit item
  • Post a positive manual check to the item you're applying the credit to

 

OPTIONAL when you invoice the client

  • Invoice the Client for the Original Item, Credit Item, and New Replacement Item all together (or add the Credit Item and New Replacement Item to the original invoice)
  • This will show a clear accounting of all items

 

Alternate

To apply the credit to an item with an open balance

  • Post a negative payment to the item with the credit balance
  • Post a positive payment to the item with the open balance

Note: A 0.00 transaction will not post.  You must apply the payments separately.

 

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