How to Add a Credit and Allocate to Invoices

Overview
Allocating simply means assigning a credit or payment to an open balance on one or more invoices. Credits can be created using any of the following methods:

  1. Account Ledger
  2. Invoice
  3. Invoice Detail

Credits via Account Ledger

Step 1. Select the Account Ledger to which the Credit will be added

Navigate to the Account Ledger section under the Accounting tab and select the billing entity you would like to apply the credit towards. Once you have the entity selected click the Credits link in the left side menu, and then click the new button. This will invoke a wizard that will guide you through the following steps to create a credit and allocate it across invoices.

 

Step 2. Add Credit Information and Optionally Allocate to Invoices

This step presents the invoice search results grid as well as the basic fields for entering the date of the credit, the amount, the unallocated amount and the credit type (the types defined for your company). Enter the amount of the credit as well as you can check the 'Auto‐Allocate' box if you would like the system to Auto‐Allocate your credit starting with the oldest open balance, otherwise if you would like to allocate the credit manually leave this box unchecked. Under the credit type select the reason for the credit. Now enter the ‘Credit Notes’, this should just be a brief description of why this credit is given to ensure that the credit can be verified. Click “Save”.



Field Name Description
Amount Enter the total amount for the credit.
Auto-allocate Checking this box will allocate funds to the oldest invoices with a remaining balance. This will use funds from the credit until none remain, working from the oldest to the newest invoices with outstanding balances.
If there are funds from the credit remaining after all invoices have been brought to a zero balance, the remaining credit amount will remain as unallocated until a new invoice is closed with a balance.
Credit Type Use this drop down to log what type of credit this is. New types can be added in the Setup tab under System Types.
Allocation to Invoices This table will display all invoices meeting the criteria for the search in the previous step. You may alter the "Allocated Credit" column to manually allocate funds from the credit to whichever invoices you need.



A detail page will now load showing the credit you have logged.



Credits via Invoice

Credits can be added while viewing an invoice regardless of whether the invoice is closed or not.

Step 1. Select an invoice

Navigate to Accounting > Manage Invoices > Invoices and select the invoice where the credit will be created for. From there, click the "Select an Action..." picklist and select Add Credit.

Step 2. Add Credit Information and Optionally Allocate to Invoices

This step presents the invoice search results grid as well as the basic fields for entering the date of the credit, the amount, the unallocated amount and the credit type (the types defined for your company). Enter the amount of the credit as well as you can check the 'Auto‐Allocate' box if you would like the system to Auto‐Allocate your credit starting with the oldest open balance, otherwise if you would like to allocate the credit manually leave this box unchecked. Under the credit type select the reason for the credit. Now enter the ‘Credit Notes’, this should just be a brief description of why this credit is given to ensure that the credit can be verified. Click “Save”.



Field Name Description
Amount Enter the total amount for the credit.
Auto-allocate Checking this box will allocate funds to the oldest invoices with a remaining balance. This will use funds from the credit until none remain, working from the oldest to the newest invoices with outstanding balances.
If there are funds from the credit remaining after all invoices have been brought to a zero balance, the remaining credit amount will remain as unallocated until a new invoice is closed with a balance.
Credit Type Use this drop down to log what type of credit this is. New types can be added in the Setup tab under System Types.
Allocation to Invoices This table will display all invoices meeting the criteria for the search in the previous step. You may alter the "Allocated Credit" column to manually allocate funds from the credit to whichever invoices you need.

A detail page will now load showing the credit you have logged.

Credits via Invoice Detail

This feature allows you to generate Credit records while viewing an invoice detail record. This also automatically populates the Credit amount with the cost of the invoice detail record for easy reference.

Step 1. Select an invoice and invoice detail.

Navigate to Accounting > Manage Invoices > Invoices and select the invoice where the credit will be created for. Click the Invoice Details child node on the left navigation pane and select an invoice detail record from the list. From there, click the "Select an Action..." picklist and select Add Credit.

Step 2. Add Credit Information and Optionally Allocate to Invoices

This step presents the invoice search results grid as well as the basic fields for entering the date of the credit, the amount, the unallocated amount and the credit type (the types defined for your company). Enter the amount of the credit as well as you can check the 'Auto‐Allocate' box if you would like the system to Auto‐Allocate your credit starting with the oldest open balance, otherwise if you would like to allocate the credit manually leave this box unchecked. Under the credit type select the reason for the credit. Now enter the ‘Credit Notes’, this should just be a brief description of why this credit is given to ensure that the credit can be verified. Click “Save”.

A detailed page will be displayed showing the Credit record that was created.

 

 

 

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