Creating credit invoices

The credit invoices feature identifies and lists all AR items with a current credit balance. It provides the necessary options to select and process credit items for refund.

Before using the credit invoices feature, you must assign a refund clearing account for all appropriate entities on the AR/Cash Default Accounts window (from AR/Cash, select Set up module, and click Default Accounts). Assign a default account number in the Refund Clearing field. For more information, see System Setup (see AR/Cash: Set up module).

The Refund Clearing account represents a bridge or clearing account between AR and AP. Use the Refund Clearing account for the debit distribution entries in the AP entries in the same manner that you use the clearing account for the credit side of the AR reversal entries.

To create credit invoices (refunds), use the Credit Invoices window (from AR/Cash, select Process month-end procedures, and click Credit Invoices). You can use the Credit Invoices window to perform the following tasks:

• View credit items
• Mark credit items for refunds
• Print the list of open invoice credits
• Issue refunds

More:
Credit Invoices window
Accounting transactions created when processing refunds