Credit Entry

Occasionally vendors will issue a credit toward invoiced charges. This may be due to incorrect billings, disputes over amounts, or any number of other reasons. When this happens it is necessary to reduce the balance of an invoice in order to assure that the check for payment of the invoice is the proper amount and that the General Ledger reflects the proper amount of the debt and corresponding expense. To enter Credits:

Select:

Invoice/Credit Selections -> Credit Adjustments -> Enter New Credit

In the first step for entering credits you must select the Vendor from whom the credit was received (the same vendor who issued the original invoice). Double click the Vendor block to select the vendor's name. Today's date will be automatically entered. You may override this entry. After selecting the Vendor enter the Credit Issue Date (the date the Vendor issued the credit) and the Original Amount of the credit. You may also enter up to two lines of comments about this credit. These comments are for your own information only and are not used anywhere else in the program.

Figure: Credit Entry Window

When you have entered the data about the Credit click the Save button to save the credit memo in the database. After you have saved the credit the bottom half of the screen becomes active and you may now apply the credit against invoices from the vendor or you may exit and apply the saved credit at a later time. As you apply the credit against a vendor's invoices the balance due on the invoice and the remaining balance of the credit will be automatically reduced, until the credit reaches zero.