Invoice Adjustments (Credit Memos)

Updated Feb 12, 2020

Table Of Contents

Why Credit Memos ? Most of the time once the invoice is processed it is locked and cannot be further modified.

There are valid reasons for that such as the invoice month might have been closed and that the invoice might have been paid and pushed to the general ledger already.

Most of the time, once an invoice is processed it is locked and cannot be modified. At some point, you may need to modify an invoice. Now with credit memos, you can. A credit note or credit memorandum can be issued by the service provider to the client. The service provider usually issues a credit memo for the same or lower amount than the invoice, and then repays the money to the buyer or sets it off against a balance due from other transactions

1.     Go to [Sites (Client)] and pick the site you would like to issue a credit memo

2.     Click [Billing] Tab

3.     [New Credit Memo] is to apply a Credit Memo from scratch

4.     [Credit Memos] is to display a list of all the credit memos issued against this Site (Account)

Permissions to Create/Edit Credit Memos

           Ensure to have 'Create/Edit Credit Memos' option is checked at Roles & Permissions

           1.     Go To [Roles & Security]

           2.     Click on the role you wish to grant access to this feature

           3.     Go to permissions [Billing]

           4.     Make sure to check [Create/Edit credit memos]

Applying a Credit Memo To An existing Invoice

  1. Click [Sites (Client]] to view and select the site
  2. Select the [Billing] tab.
  3. From the Sub-menu, click [Invoices]
  4. All the invoices issued against this Site (Account) will be displayed accordingly
  5. Choose the invoice you wish to edit by clicking [Credit]
  1. Draft Invoice will include default bill items you can choose from the drop-down menu. Enter the quantity of the bill item along with the Rate credited  Note :  The quantity of each line item should always be positive, and the rate of each line item should always be negative
  2. Select the service location, if applicable.
  3. A memo is mandatory free type text field where you will be required to put some information before saving your changes
  4. Click [Save] and exit    

Applying a Credit Memo From Scratch

As well as crediting/editing an existing invoice, you can create a 'New Credit Memo'

As well as crediting/editing an existing invoice, you can create a new credit memo.

  1. Click [New Credit Memo] under [Billing] Tab
  2. Select bill items and service location from the drop down menu.
  3. [Memo] is mandatory free type text field where you will be required to put some information before saving your changes
  4. Click [Save] and exit

List All Credit Memos For A Site (Client)

  1. Click the [Billing] tab int the Client (Site) you would like to view all the credit invoices
  2. From the sub-menu, click [Credit Memos]
  3. All the credit memos issued against this Site (Account) will be displayed accordingly
  4. Click [View] to launch and electronic copy of the credit memo in .pdf format

Few things to remember : 

  • Credit memos are negative invoices
  • Taxes are calculated like a regular invoice to balance the due taxes
  • When calculating the revenue of a company, credit memos are included.
  • Credit memos can be applied as payment
  • Most of the time a credit memo is linked to an invoice.
  • Credit memos are synced as invoices
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