Tip #120 – How to Issue Credits if You Are Using “Open Balance” Statements

Tip #120
How to issue a credit to an account
if you are sending open-balance statements

If you are sending open-balance statements instead of balance-forward statements, issuing a credit to an account should be done differently than by adding a credit through the Accounts Receivable module.

Why, you ask?  Because open-balance statements only show orders with outstanding balances and a credit to a house account entered through the Accounts Receivable module does not create an order with a negative balance.  If it did, it would throw the account out of balance.

So what should you do if you use open-balance statements?  The same thing I just explained why a credit on account cannot do.  You should simply create an order for the customer with a negative balance.

Here is how…

  1. Go into the New Orders menu and begin entering a local order as you would normally do for the customer you want to give credit to.
  2. When you get to the recipient’s area, enter “XX” in the recipient’s name field so that flowerSoft will not calculate a delivery charge.
  3. You can leave the enclosure card blank or you can type something like “CREDIT TO ACCOUNT”
  4. When you get to the “Items Sold” screen, enter a quantity of “1” and in the item code field, enter “CRED.”
  5. In the description field the word “CREDIT” will automatically appear.  Add any additional wording to it, like “CREDIT FOR RETURNED VASES” or anything else you want to say.
  6. Enter the amount of the credit in the Unit Price field.  You should precede the number with a minus (-) sign but if you don’t, flowerSoft will do it for you.
  7. Enter the total amount of the credit, flowerSoft will pull out the sales tax amount later.  However, if you make the order tax exempt after flowerSoft has removed the sales tax from the total credit, you will have to adjust the credit back to its original amount.  flowerSoft will only do this once, so make sure that the amounts you enter are correct.
  8. Select the method of payment.

Here is the graphical version…


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