Credit Adjustments

A credit adjustment reduces the customer’s invoice balance but 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.

How Do You Access Credit Adjustments?

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

What Happens When You Create a Credit Adjustment?

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. Before you post a credit adjustment, you can edit or delete it. Once a credit adjustment is posted, it can be reversed 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 haven't yet applied.

Creating a Credit Adjustment

To make a credit adjustment on an account:

  1. Navigate to the desired billing account and from the Account action menu, select Create Credit Adjustment.

  2. In the Create Credit Adjustment window that appears, enter the required fields.
  3. Adjustment Information
    Reason* Select the reason for creating a credit adjustment.
    Amount* Enter the amount of the credit adjustment.
    Effective Date* Enter the date when the credit adjustment should expire. Expiration date must be greater than the Effective Date.
    Write-off Expired Adjustment Select to write-off the credit adjustment after it expires. The check box is enabled once you enter the Expiration Date.
    Description Enter the additional information about the credit adjustment.
    Manually Apply to Invoice
    • Select the check box to indicate that the credit adjustment should be manually allocated to an open invoice.
      • If there are open invoices on the billing account, selecting the check box displays the list of invoices and you can choose to allocate an adjustment to the desired invoices immediately. In the Adjustment Amount field below, you can modify the amount that you want to apply to each invoice.
      • If you select this check box, but don’t want to allocate the adjustment to an invoice in the Create Credit Adjustment window, you can apply it later after you post the adjustment.
    • Clear the check box to automatically apply the adjustment to the oldest open invoice on the billing account after the adjustment is posted.
      • If the adjustment amount is larger than the oldest invoice, it allocates to the next open invoices starting from the oldest to the newest.
      • If the amount of the credit adjustment is larger than all open invoices on the billing account, the remaining credit adjustment amount displays as Unapplied Amount on the Credit Adjustment page. After new invoices are generated, this remaining amount allocates to them automatically.

    Note: You can select or clear this check box when editing a credit adjustment, even after posting.

    Adjustment Application
    Invoice

    Select the check box next to the invoice to which you want to apply the credit adjustment.

    • If you don’t select the invoice, the adjustment will be created in Pending status and you can apply it to the desired invoice once it's posted. Before applying to the invoice, you can edit the credit adjustment if desired.
    • If you select the invoice, the credit adjustment is created in Posted status. Applied credit adjustments cannot be edited or deleted, but you can reverse it if desired.
    Adjustment Amount

    Next to the desired open invoice or invoices, enter the amount of the credit adjustment that you want to apply to each invoice. The Adjustment Amount auto-populates depending on the amount of the credit adjustment and number of invoices, but you can modify these values as needed:

    • If the amount of the credit adjustment is greater than total open invoice amount, invoice amounts auto-populate in the Adjustment Amount fields. The remaining credit adjustment amount displays below as the Unallocated Adjustment Total.
    • If the amount of the credit adjustment is less than the total invoice amount, the total amount of the credit adjustment auto-populates next to the oldest open invoice in the Adjustment Amount field.

    * Indicates the required field.

  4. To save your changes, click Create Adjustment.
  5. Note: You can also select Create Another and then click Create Adjustment which would save the current credit adjustment and open the window for creating a new one.

Editing a Credit Adjustment

To edit a credit adjustment:

  1. Navigate to the desired billing account, click the Adjustments tab and do one of the following:
    • Select the credit adjustment from the list, then select Edit from the action menu on the Credit Adjustment detail page.
    • Under Actions, click the ellipsis icon , then select Edit.
  2. In the Update Credit Adjustment window, edit the necessary fields.

  3. To save the changes, click Update Adjustment.

Posting a Credit Adjustment

After creating a credit adjustment, it must be posted to apply to a billing account balance. You cannot delete a credit adjustment after it’s posted.

The way a credit adjustment allocates to open invoices after it’s posted depends on the Manually Apply to Invoice field configuration.

After you post a credit adjustment with the Manually Apply to Invoice field set to Yes, you can apply it to the desired invoice or invoices if you didn’t when you created a credit adjustment. If you select the Manually Apply to Invoice check box when editing the credit adjustment after it is posted, existing automatic invoice applications will not be unapplied. You can manually reverse credit adjustment applications from the desired invoice.

After you post a credit adjustment with the Manually Apply to Invoice field set to No, it automatically allocates to the oldest open invoice. If you clear the Manually Apply to Invoice check box when editing the credit adjustment after it is posted, the unapplied amount will automatically allocate to the oldest open invoice too.

  • If the adjustment amount is larger than the oldest invoice, it allocates to other open invoices starting from the oldest.
  • If the amount of the credit adjustment is larger than all of the open invoices on the billing account, the remaining credit adjustment amount displays as Unapplied Amount on the Credit Adjustment page. After new invoices are generated, this remaining amount allocates to them automatically.

To post a credit adjustment:

  1. Navigate to the desired billing account and click the Adjustments tab.
  2. In the Credit Adjustments section, find the needed adjustment and under Actions, click the ellipsis button , and then select Post.
  3. In the Confirmation window, click Yes.

Applying a Credit Adjustment

If you did not already apply a credit adjustment to an open invoice when creating a credit adjustment, you can manually apply it after it has been posted. This is known as an adjustment application.

Note: Only adjustments with the Manually Apply to Invoice field enabled can be manually allocated to invoices. You can select or deselect this check box when creating or editing an adjustment.

To apply a credit adjustment:

  1. Navigate to the desired billing account and click the Adjustments tab.
  2. In the Credit Adjustments section, find the needed adjustment and under Actions, click the ellipsis button , and then select Adjustment Application.
  3. In the Adjustment Application window, select the desired invoice or invoices and enter the adjustment amount that you want to apply to each in the Adjustment Amount field.
  4. After you have entered all required information, click Apply.

On the Credit Adjustment page, you can view details about invoices with applied adjustments. On the Adjustment Application detail tab, click an invoice from the list for more information.

Deleting a Credit Adjustment

To delete a credit adjustment:

  1. Navigate to the desired billing account and click the Adjustments tab.
  2. In the Credit Adjustments section, find the needed adjustment and under Actions, click the ellipsis button , and then select Delete.
  3. In the Confirmation window, click Yes.

Reversing a Credit Adjustment Application

If you need to unapply the credit adjustment application from an invoice after the credit adjustment is posted, you can reverse it.

You can reverse both automatic and manual credit adjustment applications. To reverse the credit adjustment application from the invoice, the Manually Apply to Invoice check box must be selected when creating or editing a credit adjustment.

  1. Navigate to the desired billing account and select the Adjustments tab.
  2. From the Credit Adjustments pane, select the needed adjustment from the list.
  3. On the Credit Adjustments detail page, in the Adjustment Application detail tab, click the ellipsis button next to the adjustment application that you want to unapply, then click Reverse.
  4. In the Confirmation window, select Yes.

The unapplied amount displays in the Adjustment Application detail tab as Reversed. Now, you can allocate it to other invoices.

Reversing a Credit Adjustment

If a credit adjustment was made in error, you can reverse it after it's been manually posted. You can't delete a credit adjustment after posting it.

To reverse the credit adjustment:

  1. Navigate to the desired billing account and click the Adjustments tab.
  2. Select the adjustment that you want to reverse and under Actions click the ellipsis button , and then click Reverse.
  3. In the Confirmation window, click Yes.

Note: The reversed amount is displayed as the Write-Off in the Adjustment Application detail tab.

Reversing an Unapplied Credit Adjustment Amount

To reverse the unapplied credit adjustment:

  1. Navigate to the desired billing account and click the Adjustments tab.
  2. Select the adjustment that you want to reverse and under Actions click the ellipsis button , and then click Reverse Unapplied.
  3. In the Confirmation window, click Yes.

The unapplied amount of the credit adjustment that has been reversed is displayed as Write-Off Amount on the Adjustment Application detail tab on the Credit Adjustment Detail page.

Viewing Credit Adjustment Information

The Credit Adjustment page displays credit adjustment details configured when creating or editing a credit adjustment and information about adjustment applications or reversals.

  1. Navigate to the desired billing account and click the Adjustments tab.
  2. From the Credit Adjustments pane, select the needed adjustment.
  3. On the Credit Adjustments page:
    • The Credit Adjustment Details section displays the details configured when creating or editing a credit adjustment such as the credit adjustment number, status, entered and effective dates, type, amount, unapplied amount, and more.

    • The Adjustment Application detail tab displays invoices to which the credit adjustment was allocated. Click the desired invoice to open the Invoice detail page. If the adjustment was reversed, this detail tab also displays the reversed and write-off amounts.