How Do I Create a Credit for an Item with Payment Attached?

This help article will help walk you through creating a credit for an item.

This assumes you want to create a credit for an item with a payment applied to it.  The credit may be for both the client and the vendor, or one or the other.

We always suggest that a credit be created whenever money has been received/paid for.

There are two options when creating a Credit item:

1. Create a Credit Item for Invoiced Item

2. Create a Credit For An Item That Has Not Been Invoiced

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Create a Credit Item for Invoiced Item:

Step 1. Select Items

Step 2. Select Edit to view the Item you want to create a credit for

Step 3. Select the Create Credit Invoice link

Step 4. “Credit” will automatically be added in the beginning of the description

Step 5. This will cause Purchase and Selling Amounts to be a negative (credit)


Step 6. Manually change any "Other Costs" to negative


Step 7. If you need to add restocking fees, add to "Other Costs" as a positive amount (this will reduce the credit amount)

Step 8. Change the component number to the next item in sequence



Step 9. Select Save

Step 10. Confirm that the amounts of the credit items = the original items (less any restocking fees or changes in freight, etc.)

 

Create a Credit For An Item That Has Not Been Invoiced

 If the item has NOT been invoiced, the item must be Cloned to create a Credit item.  

Step 1. Select Items

Step 2. Select Edit to view the Item you want to create a credit for

Step 3. Select Clone (the new item will not have a proposal, order or invoice#)

Step 4. Add “Credit” to the beginning of the description

Step 5. Change the Selling and Purchase Quantity to a negative


Step 6. Manually change any "Other Costs" to negative


Step 7. If you need to add restocking fees, add to "Other Costs" as a positive amount (this will reduce the credit amount)

Step 8. Select Save

Step 9. Confirm that the amounts of the credit items = the original items (less any restocking fees or changes in freight, etc.)

Add the new item to the original Proposal (if the item was on a Proposal)

Step 1. Select to View the New Credit Item

Step 2. Enter the Original Proposal # in the Proposal# field

Step 3. Select Save 

(OPTIONAL) When You Invoice the Client

Step 1. Invoice the Client for the Original Item, Credit Item, and New Replacement Item all together (or add the Credit Item and New Replacement Item to the original invoice)

Step 2. This will show a clear accounting of all items

Alternate B

To apply the credit to an item with an open balance

Step 1. Post a negative payment to the item with the credit balance

Step 2. Post a positive payment to the item with the open balance

 

Add the new item to the original Order

Step 1. Select to View the New Credit Item

Step 2. Enter the Original Order # in the Order# field

Step 3. Select Save

Vendor Invoice

Step 1. Select to View the New Credit Item

Step 2. Enter the Credit Invoice # from your vendor in the Vendor Invoice # or enter the Order # if your vendor didn’t provide a Credit Invoice #

Step 3. Select Save

Apply the Credit

Step 1. When you print the next check to the vendor select the Vendor Credit item also

Step 2. This will reduce the amount of the check to the vendor by the credit

Alternate A

To apply the credit to an item with an open balance

Step 1. Post a negative manual check to the credit item

Step 2. Post a positive manual check to the item you're applying the credit to