Credit Invoices

The Credit Invoice option on the "Account Adjustments" submenu on the A/R menu program, is similar to Miscellaneous Invoices, except that the word CREDIT INVOICE rather than INVOICE prints at the top of the invoice, and the date range is controlled by the dates assigned to module RSCM in Date Range Control.

The invoice number "AUTO ASSIGN" uses the same numbering sequence as the standard invoice numbering.
This means credit invoices and standard invoices can be filed together in the same filing system for greater convenience.

Complete the details screen as outlined in Invoice Details with respect to the following guide for generating credits.

When issuing credits for products, enter the quantity as negative and the amount as positive.
When issuing credits for services, such as delivery, the total must be negative.
When issuing credits for taxes, the total must be negative.

Enter the appropriate value as NEGATIVE. This program will NOT do it automatically.
If the final invoice amount is NOT negative, then it is NOT a credit invoice, even though those words will appear at the top of the printed invoice.

Credits for Sales Items

When entering credit invoices for sales items, reference the original invoice number in the Invoice Comments. Use the same product numbers as the original invoice, same description and same price each.
The quantity each must be entered as NEGATIVE to create the credit.
When a negative quantity is entered, indicating the product is being returned, a restocking fee can be charged to the customer.
Setup the restocking percentage and service code for billing in the Divisional Miscellaneous Parameters.
When the invoice is totalled, the applicable taxes will automatically be credited back.

Credits for Rentals

When entering the credit invoice, reference the original invoice number and contract number in the Invoice Comments and indicate why the credit is being issued.

The Invoice Details should be set as follows:

PRODUCT #

Use the SAME product # as the original invoice.

DESCRIPTION

Use the SAME description as the original invoice.

R/S

Type R for issuing a credit for a rental.

QTY

Type the same quantity as the original invoice, but enter it as NEGATIVE.

EACH

Window to enter the time period which applies to the rental credit.
Change the Rental Rate amount to equal the amount of credit Each. Enter this amount as positive.
On exiting the window, the correct amount of credit per unit should appear on the screen as positive. If not, over-type with the correct amount.

EXTENDED

The negative quantity multiplied by the amount Each will equal the full credit issued for this product. This amount should be negative. When the invoice is totalled, totalled, applicable taxes will automatically be credited back.

Note: Credit Invoices do not prevent invoicing of a rental product with a Status code prohibiting rentals, even if quantity on credit invoice is a positive value.

Credits for Services:

When entering the credit invoice, reference the original invoice number and contract number in the Invoice Comments and indicate why the credit is being issued.

Window at the prompt Services prompt on the Totals and Services screen and select the appropriate service.

• If the service is a flat amount:
  e.g. DELIVERY

  EACH

  Enter the total credit amount as NEGATIVE for this service.

  EXTENDED

  The extended amount will equal the total amount of the credit for this service. It should be negative.

• If the service includes a quantity:
  e.g. FUEL at $1.50 per gallon

  QTY

  Enter the quantity as NEGATIVE.

  EACH

  Enter the same charge per unit as the original invoice as POSITIVE.

  EXTENDED

  The extended amount will equal the total amount of the credit for this service. It should be negative.

Credits for Rental Equipment Sold:

If rental equipment was sold (disposed of) incorrectly on an invoice, follow this outline to issue the credit invoice.
When entering the credit invoice, reference the original invoice number in the Invoice Comments and indicate why the credit is being issued.

Use the same product numbers as the original invoice, same description and same price each.
The prompt R/S should be set to S for Sale.
The quantity each must be entered as NEGATIVE.
When the invoice is totalled, the applicable taxes will automatically credit back.

When the Daily Close 2 is run, because this is a reversal of an earlier disposal a record will be written to the Allocate Bulk Disposals requiring that staff select the correct original disposal to reverse.
The earlier disposal must be manually selected, to determine the correct cost to post back to the General Ledger and to the Fixed Asset Tags.

Credits for Sales Tax:

If a customer was tax exempt or was charged the incorrect amount of tax, issue the credit invoice referencing the original invoice number in the Invoice Comments, and indicate why the credit is being issued.

To issue a tax credit, follow these steps:
The Prevent Change To Document Tax Totals flag must be NOT be set in the Company Taxing Parameters and the operator must have permission to change the Tax Codes as controlled in the Security Role Permissions.
Window on the tax field, and because there are no products or services the Document Taxes window will be empty.

TAX CODE

Enter the tax code that applies to this credit or look it up in the Window.

DESCRIPTION

The description of the tax displays.

TAXABLE AMOUNT

Leave the taxable amount at zero. This is used if the tax is being calculated automatically.

RATE

The tax rate displays on the screen.

TAX AMOUNT

Enter the total amount of tax credit as NEGATIVE.
The ability to over-ride the tax amount to be charged on a document is controlled by the Company Taxing Parameters flag Prompt For Document Taxes.

After the credit has been completed, be sure to correct the tax status of the customer in Customer Information, so that future activity is correctly taxed. If the customer has outstanding contracts, these will have to be corrected to prevent future billing problems.

To determine any outstanding Contract numbers that may need tax corrections, use Contract Inquiry By Product.
Only the open or outstanding contracts need correcting.
Fix the contracts using Contracts by correcting the tax codes on each item OUT and each service.
Tax codes can be accessed in the expanded product and services details, by pressing <F9> or clicking EXP/CON.

Issuing A Refund For A Credit Account Balance:
If a customer has a credit account balance and would like a check issued to them to clear the account, follow the steps below.

1. Use G/L Manual Checks to issue the refund to the customer.

   ACCT #

   Enter the A/R Control Account number, which triggers the Customer # window as follows:

   CUSTOMER #

   Enter the customer # to receive the refund, or look it up in the window.

   DOCUMENT

   Enter the word REFUND or a meaningful number/name.
   (e.g. the invoice number to be credited prefixed with 'R')

   SITE

   Enter the site number if relevant, or look it up in the window.

   CURRENCY

   Enter the currency code for the transaction or select it from the drop-down list.

   AMOUNT

   Enter the Check amount as positive.
   This will credit the Bank, and debit Accounts Receivable for the amount of the Refund.

2. Run Post G/L Manual Checks to post the Refund entry to show up in the Bank and also on the Customer's Account in A/R.

3. Run Clear Unapplied Balances to have the Customer's refund applied against the outstanding credit.

Posting Credit Invoices:
Any invoices entered using the Credit Invoice program must be posted with:

1. Daily Close 1 - Credit Invoice Edit
2. Daily Close 2 - Generate Credit Invoices
3. Standard Daily Close 3, with the regular invoices.

ACTIONS:
Additional actions provided by buttons on the Credit Invoices header screen include:

• Delete an Invoice:
  The DELETE button is only active when the role assigned to the operator Operators has permission to delete invoices.
  The role permission is setup in Security Roles on the Security tab of Configure System Settings.

  To delete an existing Current or Batch invoice, click the DELETE button before selecting the document number, as outlined in Delete a Single Invoice.

  This delete utility makes permanent deletions of the entire invoice selected and should only be used if the contract was voided.

  If an invoice is deleted, an audit record is generating tracking the Operator and the Date when the invoice was deleted. This can be viewed in Delete Log for function RSIH99.

• Reverse an Existing Invoice with a Credit:
  The CREDIT INV button provides the ability to generate a new credit invoice to reverse an existing invoice as outlined in Create Invoice From Existing Invoice.

  This button is only active when the role assigned to the operator in Operators has permission to Create Credit Invoice from Existing.
  The role permission is setup in Security Roles on the Security tab of Configure System Settings.

• Unlock an Invoice
  The RESET IN USE button provides the ability to release a locked invoice to allow posting as outlined in Reset Invoice in Use.

  This button is only active when the role assigned in Operators has permission to Invoice - In Use.
  The role permission is setup in Security Roles on the Security tab of Configure System Settings.