• Entering credit notes
• Adjusting WIP for write-offs on final invoices
• Creating refunds
• Modifying the reconciliation of receipts or credit notes
• Multiple Payment Example

WIP Adjustment

Creating Discounts

Credit notes may now be used to adjust write-up or write-down amounts posted on final invoices.

1. On the Process menu, click Credit Notes.
2. In the Credit No box, enter a number for the credit note (e.g., CN001).
3. Make sure the option Create Refund is not selected.
4. In the Group/Client No box, type or select the client number.
5. Enter the date of the credit note.
6. If applicable, enter a reference for the credit note of up to 7 characters.
7. In the Billing format box, select the appropriate billing code used in the generation of the credit note.
8. In the Amount box, enter the amount of the adjustment.
9. Click Post to GL to post the amount of the credit note to the general ledger.
10. Click Apply C/N to apply the credit note to the applicable final invoice(s).

1. If the credit note is applied to part of an invoice amount (that is, it’s a multiple payment), it subtracts the adjusted amount automatically from the invoice write-up/write-down amount and the proration on the reduction.
2. If the credit note is applied in full to the invoice, the total WIP amount is credited.

Notes

• When the credit note is applied, an adjustment entry equal to the amount of the credit note before taxes is added to the WIP, which can be viewed in the Billings from WIP dialog browse. This record is displayed with the type of A or adjustment.
• When the credit note is applied to a final invoice which is created using option 4, the write-up/write-down amount should be adjusted manually by the user. A dialog launches showing the original WIP entry and allowing the user to change the amount of the write-up/write-down.

Example:

ABC charged a client $1,000 for total time and issued a final invoice for $1,400. A write-up of $400 was created and allocated. The client disputed the bill and ABC agreed to issue a credit note for $200. The new application method for this credit note reduces the write-up directly.

Invoice	$1,400.00
Time billed	$1,000.00
Write-up	$400.00

A credit note for $200.00 is created to dispute the bill.

1. When the credit note is applied to a Final WIP invoice an adjustment line is created in the WP database.

1. An adjustment line for the $200.00 (Type = "A") appears in the Billings from WIP dialog's browse. Note that this record cannot be billed.
2. The adjusted amount (credit note amount) is subtracted from the invoice write-up/write-down amount and proration is performed on the $200.00 instead of the $400.00 to all the entries billed to the invoice.
3. If the credit note is paying off the total amount of the WIP invoice and applied in full, then the total WIP amount is credited.

2. When the credit note is applied to an interim WIP invoice an adjustment line is created in the WP database.

1. An adjustment line for the $200.00 (Type = "A") appears in the Billings from WIP dialog's browse.
2. It creates the adjustment with the amount of the credit note. There is no write-up/write-down adjustment. This record can be billed with a Final invoice.
3. When billing the interim invoice to a final invoice, it adjusts the write-up/write-down of the final invoice with the amount of the credit note adjustment.

Reports

The adjustment line is recorded on the following reports:

• Client WIP detail and summary reports
• WIP analysis detail and summary reports
• WIP reconciliation reports