Credit Adjustments

A credit adjustment affects the customer’s account balance and next invoice balance. It does not cause a payment gateway transaction or return any funds to the customer. Credit adjustment application must equal the total amount of the credit adjustment (refer to Apply Credit Adjustment).

A credit adjustment is manually created (refer to Create Credit Adjustment) from the Account drop-down menu or by editing an invoice (refer to Edit Invoice ).

A credit adjustment is automatically generated by Gotransverse when an invoice is reversed (refer to Reverse Invoice) or when creating a manual invoice with a negative value (refer to Manual Invoices). A negative invoice cannot be directly applied to an open invoice, so Gotransverse utilizes a credit adjustment to apply the negative invoice amount towards open invoices.

Credit adjustments that are system generated due to a negative invoice have the Manually Apply to Invoice field set to No by default, and the negative value is automatically applied to the oldest open invoices. You can manually apply (refer to Apply Credit Adjustment) a system-generated credit adjustment by editing (refer to Edit Credit Adjustment) it to select the Manually Apply to Invoice checkbox and then reversing the application (refer to Reverse Credit Adjustment After Posting) that happened automatically when the negative invoice was posted. The unapplied amount is now available to be applied towards open invoices or left as an unapplied amount on the credit adjustment for future application.

You can create a credit adjustment through the Customer drop-down menu of an open billing account. For instructions on searching for and opening a customer's billing account, refer to Search Feature. To view credit adjustments that you have already created, click the Adjustments tab in an open billing account.

When you create and process a credit adjustment, Gotransverse decreases the amount owed by the billing account. The credit adjustment appears in the customer's next invoice, and Gotransverse creates corresponding general ledger transactions.

You can apply a credit adjustment to one or more invoices immediately or manually post it and apply it at a later time to be included in the next bill cycle run. Before you post a credit adjustment, you can edit or delete it. Once a credit adjustment is posted (refer to Post Credit Adjustment), it can be reversed (refer to Reverse Credit Adjustment), but it cannot be deleted or edited. If you need to make changes to a posted credit adjustment, you can reverse a posted credit adjustment that you have applied to an invoice as well as a posted credit adjustment that you have not yet applied.

Refer to the following topics for additional information about credit adjustments: