Release 12.1

This feature introduces an on-account credit memo functionality. There are now four credit memo options, three of which are On-Account Credit memos and one of which is Invoice-based. 

For more information on invoice-based credit memos, refer to Credit Memos. 

The Calculate feature for this credit memo type works as follows: 

1. The set of invoice charges for that plan/service combination are determined.
2. The amount is calculated by the value of the new price applied to the same period.
3. The difference is proposed as a credit.
4. If the value is negative, then the new price applied exceeds the original billed amount and no credit is created. The price change excludes voided, written-off, or pending invoices and the value returned is tax inclusive.

Getting Here: Select an existing account > Payments & Credits > Credit Memos tab

2. Select a Credit Type. A field for Master Plan Instance Number and additional fields display. 
3. Select a Master Plan Instance Number. 
4. If applicable, select a Supplemental Plan Instance Number.
5. Enter Comments to explain the reason for issuing the credit memo. These comments display internally.  If you'd like to add a note for the clients invoice, click Add Customer Note.
6. Complete the remaining fields.  The fields displayed depend on the Credit Type selected. 

General

1. Select a Reason Code.
2. Enter an Amount.
3. Click Save. The credit memo displays on the Credit Memos tab for the account, and the credit memo lines display on the Transactions tab for the account.

Price-Change or Cancellation

1. Enter a service name, number or plan instance number in the Credit Memo Lines field. Optionally, click Browse to search for and select a service. When browsing for a service, note that you can show/hide columns. The results displayed include the services associated with the Master Plan Instance and the Supplemental Plan services, if applicable.

Note: Selecting the service at this step does NOT apply a credit to the selected service. Selecting the service provides the amounts for the Calculate function described in step c. After the calculations have been completed, you may use the calculated amount or enter a different value. 

2. Enter a Reason Code.
3. Enter an Amount or click Calculate. The Calculate feature uses the Start Date to calculate the price difference. All invoices generated from the start date to the current date are included. The difference can be positive or negative, but the credit memo process only supports a reduction in price in the form of a credit. It does not support a debit.
4. Click Next and confirm the credit memo. The credit memo displays on the Credit Memos tab for the account, and the credit memo lines display on the Transactions tab for the account.

Invoice-Based

1. Select an invoice to which you want to apply a credit memo.  The following types of invoices are not displayed on the list:

• Invoices that have already been voided
• Child invoices, when account hierarchies are used with the parent pay option
• Invoices with no lines upon which the credit memo can be applied
• Pending invoices
• Invoices that have any refund-related reversals
• Invoices that have already been rebilled

2. Enter the credit amount for each line item. This amount must be greater than 0. Note that the maximum amount equals the original line item amount minus any previously applied credits, including credit memos.

Note: After you enter an amount, the client tax engine calculates the tax amount that must be credited. Entering the full amount of the line item may not result in a zero invoice balance due to tax calculations.

3. Click the page icon to optionally add a comment for any line items.
4. Click Next to continue. The details for the credit memo display, including any credit for taxes.
5. Click Save to create the credit memo. Confirm that you want to save the credit memo. The credit memo displays on the Credit Memos tab for the account, and the credit memo lines display on the Transactions tab for the account.

• You can click Void to cancel the credit memo. The credit memo is removed from the invoice and displays as Voided on the Credit Memo page and the voided credit memo lines display on the Transactions tab for the account. If you void a credit memo, the entire credit memo is voided. You cannot void individual lines on a credit memo. You cannot void a credit memo if it is applied to an invoice when the invoice is rebilled.
• Clicking Apply opens a window to select which line items to apply the credit memo.  If you specified a specific application case when you created the credit memo, this displays by default.  You can search for different line items using any of the available search parameters and select a new application.  
• Click Unapply opens a window to revise the application amount, or remove it entirely.