Write Off or Discount All or Part of an A/R Balance

 

A Credit Memo is an invoice for a negative amount. It can be used to write off all or part of a balance owing in Accounts Receivable.

To Enter a Credit Memo:

Select the A/R module icon > Invoice tab

Enter the File Number and click OK:

            

The invoice Item screen will be displayed. Enter a Reference (title for the invoice), a description of the invoice item, amount, and GL Account (this will be either Fees or Disbursements):

Click Accept.

The invoice screen will be displayed:

If the credit memo consists of a single item for fees or disbursements, it can be posted and printed by clicking the Post button.

If an additional item has to be added to the credit memo, click the New icon:

Enter the description of the new credit memo item and click Accept:

NOTE the GL Account for Disbursements used on the invoice item above.

After clicking Accept, the Invoice screen is displayed with the various invoice items.

As many items as required can be added to the invoice by clicking New from this screen:

NOTE: CLICK HERE for information on treating bad debts as an expense.