Credits
Overview
There are several ways in Emersion to credit an amount of funds to a customer account. These include:
- raising a cardline with a negative value - This is best used when the credit needs to be applied before the invoice is sent to the customer.
- using Emersion's Credit feature - This is best used to credit an account after the invoice has approved and sent to the customer. Uses a single ledger code that cannot be changed.
- creating a product with a negative value - This is best used when a credit needs to adopt a different ledger codes.
This article is for Emersion's Credit feature only. Please see the links at the end of this article if you are interested in other ways to apply a credit.
Emersion's credit feature gives users the ability to raise a credit against a customer’s account. The amount can be automatically allocated so the system applies the credit amount against the oldest invoice(s) first, or you can manually apply to an invoice.
Credits reduce the customer’s outstanding balance immediately. Credits also create a transaction in the ledger.
All credits use the same ledger code for a credit. This cannot be changed by the user.
You can also create a credit on an account by raising a manual cardline for a negative amount. This method allows the credit to be raised without allocating the credit amount against an invoice.
To Create a Credit
- Select Finance > Accounts Receivable > Credit from the Menu. The Customer Search list page will appear showing all customers.
- Locate the required customer in the list, and click the Credit link in the Action column. The Credit page will display, showing a list of all outstanding invoices for the selected customer, with the oldest invoice shown first. Invoices that have been paid in full will not appear.
- Enter the credit amount in the Total (Inc Tax) field. The system will automatically calculate the credit Amount (Ex tax) and the Tax Amount and display in the corresponding fields.
- Alternately, enter the credit amount in the Total (Ex Tax) field. The system will automatically calculate the credit Total (Inc tax) and the Tax Amount.
- Select the Tax Type applicable to the credit in the drop list. By default, this is set to ‘Australian GST’.
- Tick the Auto Allocate check box to prompt the system to automatically allocate the credit against the customer’s outstanding invoices. The system will allocate the credit amount against the oldest outstanding invoice.
- If the credit amount is greater than the oldest outstanding invoice, the system will allocate the credit against the next oldest outstanding invoice, and so on, until the total credit amount is fully allocated.
- Alternately, clear the Auto Allocate check box to manually assign the credit amount against the required invoice(s). Enter the amount(s) in the Allocated Amount field beside each invoice as required.
- Enter the Credit Reference. This will appear on the customer’s invoice with the credit amount.
- Select the Credit Type from the drop list. Options include: Misc (miscellaneous), SLA (Service Level Agreement), Marketing, and CSG (Customer Service Guarantee).
- Enter the Credit Date. A Calendar tool will appear to allow you to select the required date.
- Enter any notes or other details in the Credit Note field.
- Click the Submit button. A window will appear showing the credit details entered to confirm the credit.
- Click the Yes button to confirm the credit. The Credit customer list page will appear with an information box showing the credit has been applied to the account.
- The system will record the credit against the selected invoice(s), update the account balance, and create a transaction in the ledger.
- Click the No button to cancel the credit and return to the Credit page to make any changes as required.
