Credit Memos

Credit Memos are used to apply a credit to a client’s bill that is not associated with the receipt of cash. If cash is received, then that should be addressed using the Cash Receipts function. Negative values are applied in order to lower the A/R balance for a specific bill in the case where a credit is issued. Positive amounts may also be applied to increase the amount of A/R for a specific bill. The bill must be posted before a Credit Memo may be applied.

The amount entered in credit memos is recorded as an adjustment. If the Adjustments Applied box is included on the bill's design, then this amount appears on the next bill generated for the client, matter or consolidation.