Posting a Credit Adjustment
You may need to amend the fee charged to an applicant if a service has not been fulfilled as intended. For example, a piano class may need to be cancelled. If a payment schedule is associated with an invoice this will need adjusting to reflect this.
Applying a Credit Adjustment
To make an adjustment click on the “Post a Credit Adjustment” button. This can be found at the bottom of the screen, under the Finance Tab. You can access your debtors Finance tab via the service they are being charged for or through their contact record.
A new window will pop up displaying the original invoice including the outstanding balance.
You post a credit to reduce the amount originally charged to a customer via an invoice. A credit is therefore directly related to an original invoice and should mimic the original invoice other than the value.
You can add a reason for why you are applying a credit in the “Reason for Credit” field.
Press the Save button to apply the adjustment.
The Finance tab and Ledger section will now show the credit with a status of “Pending” if you have credit authorisations turned on under System Configuration in Settings. The credit adjustments are a request still at this stage and the credit has not been applied to the debtor's account. Therefore, the outstanding debit still shows as £316.00. To apply the credit to the account it must first be authorised.
The payment schedule may need to be cancelled if the credit reduces the outstanding fee to zero.
If the credit reduces the fee to less than the amount already paid, a refund needs to be made to compensate for overcharging the customer.
The payment schedule and Invoice will need adjusting to reflect the new fee. To make an adjustment you need to raise a Credit.