AR Credits (aka Credit Memos) are used to record a reduction in Accounts Receivable. An AR Credit is created as its own document for a particular Customer, but is never applied against a particular Invoice. It's essentially a negative invoice. These are typically used for amounts owed to Customers or to offset existing Invoices.
This is different from a Cash Receipt, which is used to reflect a payment received for a particular Customer. A Cash Receipt is then applied directly against an Invoice in the Receive Cash tab of the Cash Management module.
Manage AR Credits from navigating to AR>AR Credits:
Add AR Credit
Enter all required fields and click submit. You can also click the down arrow next to the submit button and click 'Submit and New' to open a new blank AR Credit to complete.
Customer - AR Credit's Customer (click the + icon to Add New Customer)
Template - Template to use when creating a PDF of this AR Credit. See this article for more information: Templates
Invoice Date - Date of the AR Credit
Posting Date - Journal posted date of the AR Credit. This value is used as the transaction and posted date of the linked Journal.
Due Date - optional date the AR Credit is due
Type - optional type field for AR Credits. You may type to create a new type on the fly.
Location - Location to post the AR Credit in
Intercompany Location - Intercompany Location to post the AR Credit in
AR Account - Ledger Account to use as the Accounts Receivable side of the journal entry
Currency - currency AR Credit is created in
Reference - optional reference text field.
- Item/Description/Kit - click the clipboard dropdown to toggle between a description/item/kit line item.
- Cost Center - The line items associated cost center
- Job - The line items associated job, only the selected Customers jobs will be available
- Product - The line items associated product.
- Invoice Account - if the line item is a description type, this will be required as the alternate side of the journal entry from the AR Account
- Quantity - Number of items (multiplier for amount to create total)
- Amount - Price per item
- Tax Code- Select the tax code to apply a percentage tax to the AR Credit
- Tax Amount - Populated from the Tax Code or manually entered
- Total - Calculated by taking (Quantity * Amount) + Tax Amount
Notes - Long form text field for extra information regarding this AR Credit
- When an AR Credit is created, its status is 'created', and associated journal entries are created in 'draft' status.
- An AR Credits journal entries cannot be modified, you must edit the AR Credit itself and the associated journals will be updated.
- Once an AR Credit is Issued, the journal entries will be posted.
Details - Click the AR Credit number to view the AR Credit's detail page. For more information see this article: AR Credit Details
Attachments - Click the blue paperclip icon on the AR Credit row to view a list of the AR Credit attachments and download.
PDF - Click the PDF icon to bring up a PDF preview of the AR Credit. Click anywhere on the preview to download the AR Credit.
Issue - Click the issue icon to issue the AR Credit. This does the following
- Sets the AR Credit to status 'issued'
- Posts AR Credit associated journal entries
- If System Settings "Email On AR Credit Issued" is On then a PDF of the AR Credit will be emailed to the Customer's email address if set.
Email - Click to (re)send the AR Credit to the Customer's email address.
Create IC Document Journal - Click to create an IC document journal entry for this AR Credit
Edit - Update AR Credit fields
Void - - Void AR Credit. This does the following:
- Sets the AR Credit to status 'voided'
- Posts a journal entry reversing the issued entry.
Delete - Delete this AR Credit
Select multiple checkboxes next to the AR Credits and then click Actions:
Delete Selected - Any selected AR Credits will be deleted. If an AR Credit is selected that cannot be deleted it will be skipped.
Issue Selected - Any selected AR Credits will be issued. If an AR Credit is selected that cannot be issued it will be skipped.
Update Selected - Allows you to bulk edit the date fields of one or more AR Credits. Any AR Credit that cannot be updated (issued/voided/etc.) will be skipped.
Get PDFs Selected - All selected AR Credits will generate PDFs which will then be downloaded. Ensure your browser's security settings allow you to download multiple documents.