AR Credits

Created by Travis Lander, Modified on Thu, 18 Feb, 2021 at 9:49 AM by Travis Lander

Description

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.

Note: 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.

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.

Required AR Credit Fields:

Customer - AR Credits Customer (Click the + icon to Add New Customer).
Template - Template to use when created 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 - Date the AR Credit is due.
Location - Location to post the AR Credit to.
AR Account - Ledger Account to use as the Accounts Receivable side of the Journal Entry.
Currency - currency AR Credit is created in.

Optional AR Credit Fields:

Type - optional type field for AR Credit. You may type to create a new type on the fly.

Intercompany Location - Intercompany Location to post the AR Credit to.
Sales Order - Link to an existing Sales Order.
Reference - Optional reference text field.
Notes - Long form text field for extra information regarding this AR Credit.
Attachments - Add one or more files to the AR Credit.

AR Credit Line Item Fields:

Item/Description/Kit - click to toggle between a description/item/kit line item.
Job - The line items associated Job (only the selected Customers Jobs will be available).
Product - The line items product.
Invoice Account - if the line item is a description type, this will be the alternate side of the Journal Entry from the AR Account.
Quantity - Number of items.
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)- Quantity * Amount + Tax Amount

AR Credits Individual Actions

The following are available from the Actions column on the far right of the table:

Attachments - Click to view a list of the AR Credit attachments and download.

PDF - Click to bring up a PDF preview of the AR Credit. Click anywhere on the preview to download the AR Credit.

Issue - Click to issue the AR Credit. This does the following:

Set the AR Credit to status 'issued'
Posts AR Credis 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 send or resend 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.

Details - Click the AR Credit number to view the AR Credit's detail Page. For more information see this article: AR Credit Detail

AR Credit Bulk Actions

Issue Selected - Any selected AR Credit will be issued. If an AR Credit is selected that cannot be issued it will be skipped.
Delete Selected - Any selected AR Credit will be deleted. If an AR Credit is selected that cannot be deleted it will be skipped.
Void Selected - Any selected AR Credit will be voided. If an AR Credit is selected that cannot be voided it will be skipped.
Get PDFs Selected - All selected AR Credit will generate PDFs which will then be downloaded (Ensure your browser's security settings allow you to download multiple documents).
Update Selected - Allows you to bulk edit the date fields of one or more AR Credits. Any AR Credits that cannot be updated(issued/voided/etc.) will be skipped:

AR Credit Table Actions

Filters - Filter what appears in the table based on one or more fields available in the table.
Saved Views - You can create a set of filters that you would like to save to be able to quickly filter a table.
Column Selector - Hide and reveal extra columns and the number of rows visible in the table per page.
Export - Table data can be exported using the export button at the top of the table.

Important Considerations

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'.