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Credit Memo Screen
- 08 Nov 2023
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Credit Memo Screen
- Updated on 08 Nov 2023
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The Credit Memo screen supports the viewing, editing, or creation of credit memos.
It is accessible from the following locations:
- By clicking on a line item that has a payment type of Credit Memo on the Payments Search List screen
- Choosing the New Credit Memo option available by hovering over the New icon on the Aspire Tool Bar
- New Credit Memo option is available by hovering over the New icon on the Payments Search List screen
- From the Invoice screen, select the Add Credit Memo option in the Actions menu, and fill out the Select Info for New Credit Memo screen, and save.
When creating a new credit memo using options 2 or 3, above, before Aspire displays the Credit Memo screen, it shows the Select Payment Account screen as shown at right. This allows you to specify who is responsible for payments on the account – either a
company or a contact – allowing Aspire to narrow down or fill in the billing contact on the Credit Memo screen and to display the list of invoices for which the company or contact has billing responsibility. For commercial accounts, it is best practice to set up the system so that users can choose a company responsible for the property. On this screen, once you have selected either a company or a contact, click the Save icon to display the Payment screen.
The image below demonstrates what the Credit Memo screen might look like for an existing credit memo that has been applied to an invoice. Notice that it shows the allocations to invoicesa.
The following table summarizes all screen elements.
| Screen Element | Description |
|---|---|
| Billing Contact | The billing contact is responsible for determining the eventual application of the credit memo. |
| Billing Company | The company associated with the billing contact. |
| Credit Date | The date on which the credit should be applied to the account. |
| Branch | Your company's branch with which the credit memo is associated. |
| Billing Street Address | Billing address information associated with the customer’s responsible billing party. Aspire automatically fills these fields with the address of the selected billing contact. You can change these values. |
| Billing City | |
| Billing State/Zip | |
| Credit as Expense | Checking the Credit as Expense checkbox indicates that you plan to post the credit to a GL account on the profit and loss or the balance sheet in the accounting system instead of to one of the divisions. Note that when you check this box, the Division field changes to an Expense field. The options available in the Expense field are established on the Admin List Payment Category screen in Admin. Flagging this checkbox will cause the associated credit dollars to show up in the Expense tab at the End of Month Report. |
| Property/Opportunity | Allows you to choose the property or opportunity to which the credit will be applied. This field requires a value. |
| Division or Expense | The label and function of this field changes depending on whether the Credit as Expense checkbox is checked. If the Credit as Expense checkbox is not checked, the field accepts the company division to which the credit should be applied. If the Credit as Expense checkbox is checked the field label changes to Expense and allows you to select a payment category as defined on the Admin List Payment Category screen. |
| Tax Jurisdiction | When credit memos are initially created, Aspire automatically ties them to a tax jurisdiction based on the associated opportunity or property – if the tax jurisdiction on the opportunity overrides that of the property, the opportunity tax jurisdiction takes precedence. This field allows you to change the tax jurisdiction for the credit memo after it has been created. |
| Sale Amount | Allows you to enter the amount of the sale that should be credited to the customer excluding any sales tax. Keeping the sale amount separate from sales tax allows accurate month-end financial reporting. |
| Taxable Amount | Allows you to enter the portion of the Sale Amount that was taxable. Supports accurate month-end reporting. |
| Tax Amount | Allows you to enter the sales tax amount that should be credited to the customer. The default value of the tax amount field is automatically calculated based on the tax jurisdiction of the selected property and the value entered for the Taxable Amount field. You can overwrite the calculated value but Aspire prevents them from changing the value by more than 5% of the calculated value. The value saved in this field affects the sales tax amounts reflected on the Revenue tab of the End of Month Report. Keeping the sales tax separate from the sale amount allows accurate month-end financial reporting. |
| Total Amount | The sum of the sale amount and tax amount is automatically calculated by Aspire. The default value is automatically calculated and populated into this field based on the tax jurisdiction of the selected property and the value entered for the Taxable Amount field |
| Invoice Section | This section displays allocations of the credit to invoices. You can allocate the credit to invoices on the Payment screen. |
| Notes | Allows you to record an internal note. For example, to explain the reason for the credit. |
| More Actions Menu | This menu has two options as follows:
|
Examples of Crediting Taxable Sales
The taxable amount represents the portion of the sales amount that needs to be credited causing Aspire to reduce it on the Tax Entity Report. Suppose that a user issued an invoice for $2,006 and the invoice was for $1,000 nontaxable, $1,000 taxable, and $6 sales tax.
Example 1 – If the customer called and said they shouldn’t have been charged sales tax, you would put $0 for the sales amount, $6.00 for the tax amount, and $1,000 for the taxable amount. The $6 would show in the total amount because that is what is being credited to the customer. The $1,000 taxable amount allows Aspire to properly adjust the Sales Tax Entity Report lowering Sales Taxable Revenue by $1,000.
Example 2 – If the full $2,006 needed to be credited, you put $2,000 for sales amounts, $6.00 for tax amount, and $1,000 for the taxable amount. Aspire would reflect $2,006 for the total amount because the full amount is being credited to the customer. The $1,000 taxable amount allows Aspire to properly adjust the Sales Tax Entity Report reducing Sales Taxable Revenue by $1,000
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