To create a credit memo, open a new credit memo batch, select the client, matter, and bill number, enter the required comment and narrative, allocate the adjustment on the appropriate tab, and save the credit memo.
Use a credit memo to adjust a posted bill. A credit memo can decrease the amount of the bill or, less commonly, increase it.
Credit memos are posted automatically when you save them. Verify the information carefully before selecting Form > Save.
Create a credit memo
Select Transactions > Credit Memos.
Select Form > New > Credit Memo to open a new credit memo batch.
In the Batch Comment box, type a comment related to this batch, or accept the default.
Select Form > New to open the new credit memo window.
In the Date box, enter the credit memo date or accept the default date.
In the Client box, type the client code, or click the ellipses (…) button to search for and select the client and matter from the Finder window.
In the Matter box, type the matter code, or click the ellipses (…) button to search for and select the client and matter from the Finder window.
Click the Bill Number ellipses (…) button and select the bill to which the credit will be applied.
Click the Comment tab, if not already displayed.
In the Comment box, type a short reason or purpose for the credit memo. (Required)
In the Narrative box, type an explanation related to the credit memo, or click the ellipses (…) button to select a template or preformatted narrative. (Required)
Enter the Adjustment
The adjustment amount may be entered on the Summary, Fees, or Expenses tab, depending on how you want the credit applied.
Enter a negative amount to reduce the bill.
Enter a positive amount to increase the bill (less common).
You may also use the Write Off Balance option, if appropriate.
The tabs allow you to control how the adjustment is allocated:
The Summary tab distributes the adjustment proportionally across all timekeepers on the bill.
The Fees tab allows you to apply the adjustment to specific timekeepers.
The Expenses tab allows you to adjust specific billed expenses.
For example, if a $500.00 adjustment is entered on the Summary tab, the system allocates that amount across all timekeepers on the bill. If you instead use the Fees tab, you can apply that same $500.00 adjustment to a single timekeeper. Positive and negative adjustments may also be used together to reallocate A/R from one timekeeper to another.
Click the appropriate tab(s) and make your allocations as needed.
Apply Adjustments by Tab
Summary Tab
Click the Summary tab.
In the Adjustments column, enter the amount as a negative number to decrease the bill (or a positive number to increase it).
Fees Tab
Click the Fees tab.
In the Apply column, enter the adjustment amount(s) for each applicable timekeeper.
Expenses Tab
Click the Expenses tab.
In the Apply column, enter the adjustment amount for each expense item you are adjusting.
Save the Credit Memo
Before saving, verify the accuracy of the information entered.
Select Form > Save to save the credit memo.
Click the window Close button to close the Credit Memo window.
Credit memos post automatically upon saving. No separate posting step is required.