Overview
This article walks you through how to create credit memos and apply them to invoices in Aspire. A credit memo acts as a recorded credit against your customer’s future purchases, often used to correct billing errors, handle returned goods, or apply discounts without needing to void the original invoice that your team has already sent.
You can create a credit memo as an expense or apply it to a division, depending on how the credit should appear on your End of Month Report. Watch the training video, or keep reading to learn more!
Things to know
You can create credit memos from several places in Aspire: the Quick Menu, the Payments tab in the Invoicing module, the Invoice details screen (using the three dot menu), or by selecting a credit memo line item on the Payments Search List screen.
When you create a credit memo from the Quick Menu or the New icon on the Payments screen, Aspire displays the Select Payment Account screen first. This lets you choose the company or contact responsible for payments.
The Credit as Expense checkbox controls whether the credit is recorded against a division or an expense payment category.
For details on each field on the Credit Memo screen, read the Credit Memo Reference Guide.
Requirements
To create credit memos from the Quick Menu or from an invoice, the Add Credit Memo permission must be added to your user role.
Training Video
Steps
Create a credit memo as an expense
Use these steps when you want the credit separated from division revenue on the End of Month Report.
Select the Quick Menu icon in the side menu, then select New Credit Memo. Select the company or contact the credit applies to in the Select Payment Account window, then select Apply.
On the Credit Memo screen, select the Credit as Expense checkbox.
Verify or update the billing contact in the Billing Contact field. The billing address fields populate automatically if the contact has an address on file.
Select the credit date in the Credit Date field. This defaults to the date that you created the credit memo.
Select your branch in the Branch dropdown.
Select the property or opportunity in the Property/Opportunity field.
Select the expense type in the Expense field.
Note
Expense options come from Administration > Lists > Payment Categories. If the category you need doesn’t exist, you can create one from that screen.
Select the Tax Jurisdiction.
Enter the sale amount in the Sale Amount field.
If applicable, enter the taxable amount in the Taxable Amount field. Enter only the portion of the sale amount that is subject to sales tax.
If applicable, enter the tax amount in the Tax Amount field.
Enter any internal notes in the Notes field to explain the reason for the credit.
Select Save.
Expected results
The credit memo is saved and available on the Payments tab. The credit appears as an expense on the End of Month Report, separated from divisional revenue. You can now apply this credit memo to an invoice during the payment workflow your organization has set up.
Create a credit memo tied to a division
Use these steps when the credit should apply as revenue to one of your company divisions, such as Maintenance, Enhancement, or Irrigation.
Select the Quick Menu icon in the side menu, then select New Credit Memo. Select the company or contact the credit applies to in the Select Payment Account window, then select Apply.
On the Credit Memo screen, leave the Credit as Expense checkbox unchecked.
Verify or update the billing contact in the Billing Contact field. The billing address fields populate automatically if the contact has an address on file.
Select the credit date in the Credit Date field. This defaults to the date that you created the credit memo.
Select your branch in the Branch dropdown.
Select the property or opportunity in the Property/Opportunity field. The Division field automatically populates based on the selected opportunity. You can change the division if needed.
Set the tax jurisdiction in the Tax Jurisdiction field.
Enter the sale amount in the Sale Amount field.
If applicable, enter the taxable amount in the Taxable Amount field. Enter only the portion of the sale amount that is subject to sales tax.
If applicable, enter the tax amount in the Tax Amount field.
Enter any internal notes in the Notes field to explain the reason for the credit.
Select Save.
Expected results
The credit memo is saved and available on the Payments tab. The credit appears as revenue against the selected division on the End of Month Report. You can now apply this credit memo to an invoice.
Apply a credit memo to an invoice
Use these steps to apply a saved credit memo to an outstanding invoice. A common example: a customer disputed an invoice, you agreed to provide a credit, and you want to reduce the invoice balance before the customer pays.
Select the Quick Menu icon in the side menu, then select New Payment. Select the company or contact on the Select Payment Account screen, then select Apply. Aspire displays the Payment screen.
(optional) In the Regarding field, select the relevant property or opportunity to filter the list of outstanding invoices. If there are credits tied to the Contact, they will appear automatically.
In the Payment Method field, select Check.
In the Payment Date field, enter the date you want the credit memo applied, this defaults to the date that you apply the credit memo.
In the Reference Number field, enter a reference to help identify this credit memo application.
Tip
This field is commonly used for check numbers. Enter any reference that helps you track this transaction.
In the Invoices section, select the checkbox next to the invoice that should receive the credit.
Important
When you select an invoice checkbox, Aspire automatically sets the Payment field to zero because you’re applying a credit memo amount, not a payment.
In the Credits section, select the checkbox next to the credit memo you want to apply. If there are multiple open credit memos for this company, they all appear in this section.
In the Payment field in the Credits section, the full credit memo amount automatically is selected to apply to the invoice. Adjust the payment field as needed. The Credit Amount column shows the total amount available on the credit memo. If you don’t use the full amount, Aspire tracks the remaining balance for future use.
Verify the payment summary shows a total minus the Credit you’re applying, then select Save.
Expected results
The credit memo is applied to the selected invoice. When the customer reviews the invoice, the credit is recorded and they only need to pay the remaining balance. Any unused credit memo balance remains available for future invoice applications.
Tips
Use the Notes field on every credit memo to document the reason for the credit. This helps with auditing and team communication.
When applying a credit memo, the payment summary column should show zero before you save. This confirms the credit was applied correctly.