How to increase or decrease a customer's credit account. For example, if a customer sends a payment for which there is no order, how and where that is recorded. See also customer_credits

There are two main scenarios that generally occur that will have an impact on customer's credit balance in Cyrious.

  • Scenario 1:
    • A customer sends payment for which there is no order, a duplicate payment for an order that has already been paid, or a payment in excess of what is owed on the order.
    • When this occurs the customer may elect to handle this by having you keep the money on their credit account or refund it to them.
      • If you refund the excess payment then that money will not typically have any impact on the credit account.
      • If you keep the money on their account the proper way to enter that excessive payment is through an Overpayment.
  • Scenario 2:
    • A customer places an order and for a particular reason you elect to give them credit towards their next purchase. In our experience this typically happens if a customer referred business to you, may have had a problem on a previous order so you gave them $ x.xx towards a future purchase for customer service reasons, or any other situation where the customer did not actually give you a monetary payment.
    • When this occurs you should utilize the Company Credit Adjustment screen to record that adjustment in customer credit.

Please note that utilizing the Company Credit Adjustment Screen does have a financial impact as explained below:

  • Increasing the Customer Credit Balance: When you give the credit, the accounting treatment is similar to giving away your profits. That is, an expense is immediately created for the amount of the credit you are giving. (In Cyrious, this account is called Credits Given.) This will have the effect of lowering profitability.
  • Decreasing the Customer Credit Balance: When you reduce a credit, the accounting treatment of this is to recognize it as a profit (via a reduction in expenses.). That is, a “negative” expense is immediately created for the amount you are reducing. (In Cyrious, this account is called Credits Given.). This will have the effect of raising profitability.

Scenario 1: Overpayment

  1. Click on Payments (Receipts) button on the main action toolbar.
  2. Select the company or order for the excessive payment.
  3. Select your payment type. i.e. Cash, Check, etc.
  4. Enter the total payment amount in the Amount Tendered: field.
  5. If applicable, enter the total payment amount that applies to the order in the Order Payment Amount: field.
  6. Enter the total excess payment amount in the Overpayment to Credit: field.
  7. Verify the Change Due: field shows $0.00.
  8. Click the Post button on the right side action toolbar.
  9. After the payment has posted you should see the Company Credit has been increased by the amount you specified in the Overpayment to Credit: field.
    • The general ledger entries pertaining to the overpayment are:
      • Undeposited Funds $100.00 (Debit)
      • Customer Credit $100.00 (Credit)

Scenario 2: Company Credit Adjustment Screen

  1. Go to the Customer Record. It is not necessary to enter the Edit mode.
  2. Click on the Finance Tab.
  3. Immediately beneath the Payment Terms box, click on the Credit Balance “raised” button. This will bring up the box below. Click on the appropriate radio button and enter the appropriate amount. Add the reason and click OK.

credit_balance_ss.jpg

Contributor: Steve Gillispie ACorn Sign Graphics

Date: 8/04/2010

Version: Control 4.5

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