Correcting Invoices (A/R) - Credit Invoice/Revised Invoice Follow
Sometimes you may want to correct an invoice (history job) because, for example, you charged the wrong amount or you charged sales tax but the invoice should have been tax exempt. Or, you may want to cancel an invoice (history job) altogether. In the cases mentioned above, do not edit the history job associated with the invoice. Instead, follow the “Credit Invoice + Revised Invoice” and “Credit Invoice” procedures described in this section.
- The “Credit Invoice + Revised Invoice” procedure is used when a correction is needed in an
invoice, such as removing the sales tax.
- The “Credit Invoice” procedure is used to cancel an invoice altogether.
Credit Invoice + Revised Invoice
NOTE: If the invoice to be corrected has been paid and the corrected invoice total will be lower than the payment amount, see the inset titled “Payment on the Invoice to Be Revised” at the end of this section before proceeding with the following steps.
1. In the Jobs section, find the History Job to be revised.
2. Right-click on the Job and select Copy and Paste...
The Options window appears.
3. Select Credit Invoice + Revised Invoice, and click OK.
a. If, on the invoice, there's a payment which you have not reversed or removed yet, the following window appears.
If they payment amount is higher than what the amount of the revised invoice will be, click Yes and reverse or remove the payment. (See the inset titled "Payment on the Invoice to be revised" at the end of this section.)
b. If there's no payment on invoice #2408 or if you click No in (a), the following window, which explains the newly created "Credit and Revised Invoice" appears.
4. Open the Order with the negative job number (-2408) and print the invoice ("Credit Invoice")
5. Open the second Order, which is an exact copy of the original Job except for the dates and the Order number. Make the revisions on this Order, such as removing the sales tax. Assign today's Shipped date and print an invoice ("Revised Invoice")
6. Post both orders. ("Credit Invoice" and "Revised Invoice") to History on the same day they are created.
After the Posting:
- The Credit Invoice reduces the current period's figures (quantities, costs, sales tax, commissions, etc.) by the totals of the Credit Invoice to reflect the reversed sale.
- The Revised Invoice increases the current period's figures (quantities, costs, sales tax, commissions, etc.) by the totals of the Credit Invoice to reflect the adjusted sale.
NOTES:
- The original invoice in History is now marked as "Credited Invoice". (Do not confuse "Credited Invoice" (one with the positive job number) with "Credit Invoice" (One with the same Job number, but is negative.) )
- "Credit Invoices" and "Credited Invoices" can not be edited.
- The balances of both the "Credit Invoice" and "Credited Invoice" are set to zero.
- The Date Paid for both the "Credit Invoice" and "Credited Invoice" is set to today's date.
- “Credit Invoices” and “Credited Invoices” cannot be deleted for one year.
- If you have created a “Credit Invoice” by mistake, delete it before posting it. After it is deleted, the “Credited Invoice” will return to its original status as a regular History Job.
Credit Invoice
If you just want to cancel an invoice rather than revising it, you only need to create a Credit Invoice.
NOTE: If a payment has been made to this invoice, you do not need to remove the payment from the invoice. However, you must reverse it or issue a credit for it, depending on how your customer wants to handle it. (See step 2 in the inset named "Payment on the Invoice to be Credit" for these procedures.)
1. In the Jobs section, find the History Job to be revised.
2. Right-click on the Job and select Copy and Paste...
The Options window appears.
3. Select Credit Invoice, and click OK. The following window, which explains the newly created "Credit Invoice", appears.
4. Click OK. The Print window for the "Credit Invoice" appears.
5. Print the invoice ("Credit Invoice")
6. Post the Order ("Credit Invoice") to History on the same day it is created.
If the invoice to be corrected has a payment and the other payment is greater than the total amount that will be assigned to the corrected invoice, do the following before you proceed with the “Credit Invoice + Revised Invoice” steps.
1) Reduce the payment on the invoice by the amount of the difference (see “Adjusting Payments”).
2) Then,
• If the customer wants you to refund the money:
Enter a negative payment in the amount of the difference. (See “Adjusting Payments”.)
• If the customer does not want you to refund the money but to keep it as a credit on the account instead:
In the Credit window of the customer, add a credit in the amount of the difference. (See “Issuing Credits”.)
EXAMPLE: A payment of $200 has been applied to invoice #2408. Later, for miscellaneous reasons, the customer called with a complaint and, now, you need to correct the invoice by reducing the total to $150 from $200. The difference is $50 (= 200 – 150).
Before correcting the invoice, you must:
1) Remove the $50 from the paid amount so the payment on the invoice will show as $150.
2) According to what the customer wants you to do, either enter a payment of $-50 (negative amount) in the customer’s Payment window and save it, or enter a credit of $50 to the customer’s account.
NOTE: If you forget to remove the payment before creating the Revised Invoice:
• If the customer wants you to refund the money, enter a negative Deposit in the Revised Invoice:
1) Open the Revised Invoice (Order).
2) Click Paid-In-Full (or Over Paid if you have already revised the Order) to open the Deposit window.
3) Enter the amount as a negative number in the Tendered field.
4) Click Save without Printing.
• If the customer wants to keep the money as a credit,
1) Add it as a credit to the customer’s account, and
2) Reduce the Paid amount on the Revised Invoice (Order) by the amount of the credit. To do so:
I. Print an invoice for the Revised Invoice (Order) and assign to it a Shipped Date so its status becomes Ready-to-Post.
II. In A/R, list this invoice under “Invoices Ready-to-Post”.
III. Open the invoice and click Job Totals.
IV. In the Job Totals window, replace the amount in the Paid field with the correct amount.
NOTE: to users who export accounting data from Printer’s Plan and import it into QuickBooks: If the above adjustment is not made on a Revised Invoice, leaving the Invoice “Over-Paid”, the import into QuickBooks will result in an error.