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Create Credit Towards a Specific Invoice

Updated

Write-offs are generally used when an invoice is considered "bad debt". However, if a contact chooses not to pay because they simply have changed their mind about the "product" (i.e. membership, event registration, store item, etc.) this may not be considered bad debt.

 

In this case, you can create a credit against that particular invoice. This will act like a write-off in terms of how the transaction works in the accounting but by creating a credit against a specific invoice it will properly reverse the revenue recognition of that invoice when the credit is applied and allow you a way to show this not as bad debt.


 

To create a credit against a specific invoice:

 

  1. For the desired member, click the Billing tab

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  2. Click the ellipsis button adjacent to the invoice you wish to credit
  3. Click Create Credit

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  4. Credit  Date: The date will default to the current date. You may change this if needed.
  5. Notes (Visible to Recipient) - Enter notes describing the credit. These will be visible to the recipient in the Info Hub
  6. Credit Template: Choose the template you wish to use for this credit memo. If no template is selected the default you have configured under your Finance General Settings will be used.
  7. Purchase Details: Read only. Displays the details of the original purchase and invoice.
  8. Credit Items: The list will display all Fee Items (goods/service items) that were charged on the invoice
    • Description (Read Only): Description of the Fee Items (goods/service items) sold
    • Debit Account: Choose the account that you wish to be debited when this credit is created. The system will default to the income account associated to the Fee Item (goods/service item). 
    • Item Total: Total amount for this Fee Item (goods/service item)
    • Item Balance: Total remaining balance for this Fee Item (goods/service item)
    • Amount: This will default to the amount for this Fee Item (goods/service item). You can provide a credit for the full amount or a partial credit. 
  9. Click Done

 

NOTE: You can also create a credit against a specific invoice under Billing > Sales/Invoices