Entering a credit memo

Enter credit memos and apply them to existing open or partially paid client invoices.

To enter a credit memo

  1. From the > Manage menu, click Client Receipts.
  2. For the type, select Credit Memo.
  3. Select the project or client associated with the credit memo. Click the Project or Client option and then make a selection.
  4. If you select a project and more than one client is associated with the project, Ajera selects a client for you, which you can change by clicking the button in the Client field.
  1. Multi-company only. Select the recipient of the credit memo.
  2. Enter the date of the credit memo.
  3. To reduce the amount billed on your financial statements and project reports by the amount of the credit memo, select the Reduce project billed amount check box.

You often select this check box when working on a fixed fee project, and the client disputes the percent billed. You can then bill the client again at a later time, if needed.

If the check box is not selected:

  • The billed-to-date amount on the project and the billed revenue on financial statements still reflect this amount.
  • The credit memo amount is reflected as a write-off on your financial statements and project reports.

  1. Click (attachments button) and add attachments, by linking to related files. A linked file must be in a shared location for other people to open it (for example, on a shared network or a website).  

     
  2. If you enter an amount, enter the total amount for the credit memo. As you apply it to distributions, Ajera displays the remaining amount. If you do not enter an amount, Ajera calculates it for you as you enter distributions.
  3. Select the Write-Off Bad Debt check box if this credit memo is for an uncollectible client invoice.
  4. Enter any notes about the receipt. For example, you might enter notes such as: Sent copy of the credit memo to the PM.
  5. Use the table to apply the credit memo amount to your client invoices, as follows:
To Do this

Apply the credit to the entire invoice amount

Click the Credit check box for the invoice.

Apply credit to part of the invoice amount by activity type of Labor, Expense, and Consultant 
  1. Click the Credit check box for the activity type.
  2. Enter the amount that you want to apply in the Amount field to the right.

Apply credit to part of the invoice amount, specifying amounts for distributions
  1. Click the plus sign for the invoice to be credited by the credit memo.
  2. The distributions appear by activity. To see the distributions by phase, click the Credit by phase check box above the table.
  1. Click the Credit check box for the distributions you want to credit and enter the amount to the right for each.

About invoices with negative distributions:

You cannot credit part of an invoice that has a negative distribution so that it results in a negative only credit or a balance due with a negative amount. You can only save receipts when the total invoice amount and balance due is positive. Ajera highlights in red negative amounts that you cannot save.

To enter sales tax for credits:

If you selected Apply sales tax on the Billing tab in > Setup > Company > Preferences, the Sales Tax field appears in the table. When you enter an amount in the Amount field, Ajera automatically calculates the sales tax based on the sales tax rate you entered for the project or phase (in the Project Command Center > Project Info tab > Billing subtab) and reduces the amount you enter in the Amount field. To turn off the automatic calculation, click the Credit button and enter the exact amount in the Amount field and in the Sales Tax field.

  1. Click Save. The credit memo appears for you to review or print.