Billing Q&A: Adding Credits for Refunded Costs

June 2019    Tags: , , , ,

We received a refund for a cost we paid on behalf of a client. How do we credit that money back to our client, and what if they’ve already paid us for it?

There are multiple ways to handle a credit to a client, depending on the situation. However, for this scenario, adding a credit entry is the easiest way to refund the client. This is because credits are handled differently in Version 19. A credit can be issued to a client at any time, even if the fee or cost has already been paid by the client. Once the credit has been final billed and updated, it is applied toward the original cost. Any payment(s) that went toward the cost will be unallocated and reallocated during the update statements process.

To add a credit for a cost

  1. From the File menu, point to Open and select Cost.
  2. Select the Client ID.
  3. Select the appropriate Tcode. All credits must be the same type of cost as the cost for which they are crediting. An easy way to make sure of this is to use the same tcode as the original cost.
  4. In the Amount field, enter a negative amount.
  5. Press Ctrl+S.

For more information on best practices for crediting clients, including notes regarding how credits affect integration with General Ledger Software (GLS) and Accounts Payable Software (APS), refer to Knowledge Base Article R11760, “Best Practices When Applying Credits.”

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