Credit Memos Overview

In Interactive Billing, you can create full or partial credit memos for posted invoices that were originally created in Interactive Billing. Credit memos allow you to clear outstanding Accounts Receivable invoices from the AR Aged report with no additional transaction entry required.

After you create credit memos, you can:

• Print or reprint them in Interactive Billing.
• Review them in Project Review and Invoice Review.
• See credit memo information on Accounts Receivable reports.

When you create credit memos, the time, expense, and unit transactions from the original invoices are not returned to an unbilled status.

If you enter multiple credit memos with different dates against the same invoice and add the credit memos to the same transaction posting file, all the credit memos will be assigned the same date as the last credit memo that you created. If you want different dates for different credit memos applied to the same invoice, you must assign each credit memo to a different transaction posting file. This also applies if you mix credit memos, voided invoices, and voided credit memos for one invoice together in one transaction posting file. The date of the last item that you create will be assigned to all the items in the file.

Voiding or Deleting Credit Memos

When you void a credit memo, transactions (labor, expenses, and so on) are not returned to an unbilled status. Instead, the credit memo transactions are reversed. After you void a credit memo, the credit memo number cannot be re-used.

When you delete an invoice or a credit memo in Interactive Billing, it no longer displays on the Invoices on File dialog box. You can no longer reprint or void it. When you delete an invoice or credit memo, Vision does not create reversing general ledger entries or change the time and expenses back to unbilled transactions. It does not affect billed-to-date amounts or Accounts Receivable reports.

Credit Memos and Cash Receipts

When you enter a cash receipt in Transaction Entry, credit memos that you created in Interactive Billing are not listed separately on the Invoice Lookup. Any credit memos posted against an invoice are reflected in the invoice balance on the Invoice Lookup.

Credit Memos and Interest

When you create a credit memo and the original invoice had interest, the interest is automatically cleared if the credit memo amount and the original invoice amount equal 0. You do not need to enter the interest as part of the credit memo amount in the Amount field in the Invoice Credit dialog box.

For example, the original invoice amount was $100 and $5 interest was added to it. You received a $90 payment toward the invoice. You issue a credit memo for -$10. Because the $90 that you received and the $10 credit equal the original invoice amount of $100, the $5 interest is automatically reversed when you create the credit memo.

Credit Memos and Retainage

When you bill retainage, credit memos that you created in Interactive Billing are not listed separately on the Bill Retainage dialog box in Interactive Billing. Any credit memos posted against an invoice are reflected in the invoice amounts on the Billing Retainage dialog box.