Credit transactions must be applied separately to fees, expenses, and advances.

Fee Credits

Expense or Advance Credits

Finance Charge Credits

If you need to credit a payment, use the Payment Adjustment program.

In order to process the credit transaction, you must run a final statement with the credit transaction on the statement and then run the Update Statements program. If an invoice format is used and Tabs3 is configured to not include credits on invoice format statement, credit transactions are still processed (provided they are not excluded by any of the ranges specified when the invoice is printed).

A credit memo can be printed by selecting the Only Include Fee Credits and/or Only Include Cost Credits options when generating statements.

Note: Credit transactions apply at the time statements are updated. When applying to a previous balance, credit transactions apply to the most current statement due and work backwards chronologically.

Note: Credit transactions are applied before unapplied payments are applied.

Note: Credit transactions do not adjust billed or paid information for prior periods. Reports based on statement date will include credits in the period in which they were billed. Reports based on the transaction date will include credits in the period for which they were entered.

Types of Credits

Credit transactions must be applied separately to fees, expenses, and advances. A common mistake when making credits is entering the wrong type of credit. For example, if a client has $100 due in fees, applying a $100 expense credit will show a zero balance on the statement and on a Summary Accounts Receivable Report. This may seem correct; however, upon further examination, a Detail Accounts Receivable Report will show $100 fees due and -$100 fees due in expenses. We recommend reviewing an Accounts Receivable By Invoice Report before entering the credit to determine which type of credit to enter.

Additionally, when entering a fee credit, you will want to take into consideration which timekeeper the credit is applied to. For example, a client has a $200 balance due in fees, consisting of $100 billed by timekeeper #1 and $100 billed by timekeeper #2. If a single fee credit of $200 is entered for timekeeper #1, timekeeper #1’s billed productivity numbers will be affected, whereas timekeeper #2’s numbers will not be affected. This may or not may not be what you intend. We recommend reviewing an Accounts Receivable By Invoice Report with the Detail Information for each Statement check box selected to determine which timekeepers to credit. If the balance being credited needs to apply to multiple timekeepers, enter a separate fee credit for each timekeeper.

Similarly, when entering cost credits, you will want to take into consideration whether you need to credit expenses or advances, as well as which cost type to credit.

Note: When a credit is entered for a fee or cost that is taxable, a negative sales tax amount will also be generated when the credit transaction is included on a statement. However, credits do not apply to sales tax previously final billed and updated unless the credit is also marked as taxable.

Note: Credit transactions do not apply towards finance charge. The Finance Charge Credits topic discusses how to credit finance change.

See also:   Credit Transactions Technical Notes
  Credit Transactions vs. Write Offs vs. Undoing Statements
  How Credit Transactions Affect Automatic Client Funds Payments
   Knowledge Base Article R10772 - Adjusting Work-In-Process
   Knowledge Base Article R10832 - Transferring a Tabs3 Credit Balance
  Knowledge Base Article R11760 - Best Practices When Applying Credits