Your Flex system comes with the ability to create Credit Memos as a way to issue refunds to clients. Credit Memos are default financial document in your system (located on the Financials menu).
By default, Credit Memos are enabled as a child element for Invoices but you can enable it on other elements or on theCreate New Element menu.
- To enable Credit Memos as a child element, go to the Projects menu and click Element Definitions. Select the element that you would like to add Credit Memos to as a child element (e.g., Invoice) and click the Child Elements tab. Select the Credit Memo checkbox, and now you will see it listed in the Add Child Elements menu on the element.
- To enable Credit Memos on the New Element Menu, go to the Projects menu and click Element Definitions. Double click Credit Memo to open and on the General Settings tab, set Show On New Element Menu to Yes.
You will also need to create a Credit Memo payment method to enter this type of payment on an Invoice. On the Main Menu, select System Settings and choose Payment Methods. Click Add New Payment Method to create a new method called Credit Memo.
To issue a credit/refund to a client, you will create a new Credit Memo financial document, navigate to the Details tab and add a miscellaneous line with the credit amount. You can also add a Service or Inventory item, if appropriate.
To apply a credit to a Quote or Invoice, you'll want to first move the Credit Memo to the applicable job if it's not already there. To do this, open the Credit Memo, select Move Credit Memo in the Modify menu, and select the Invoice that you want to issue the Credit Memo towards.
After the Credit Memo is associated with the Invoice, open the Invoice, go to the Payments tab, click the Enter Payment button, select Credit Memo as the payment method and enter the payment amount.
The final step in this process is to open the Credit Memo, select the Workflow menu and click Issue Credit.