Processing closing procedures

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

Setting the default refund method

Before using the credit invoices feature, you must review the Refund method for credit invoices setting to determine which GL account to use when issuing refunds to credit card, bank draft, or PayPay Express payments:

1. Go to Settings > Finance > General.
2. Locate the Refund method for credit invoices setting, and choose one of the following:
   • Original payment method – The payment method, financial entity, and GL account of the refund payment is the same as the original payment. Refunds are recorded to the original payment method.
   • Issue checks – The refund payment is issued using the original payment’s financial entity and financial entity’s refund clearing GL account, with no payment method. Refunds are processed by issuing checks to the customers.
3. Click Save.

If you chose the Issue checks option, be sure the Refund clearing account is populated. To populate the Refund clearing account, do the following:

1. From the Staff site, go to Settings > Finance > Financial entities.
2. Select the desired financial entity for which you want to assign a refund clearing account.
3. Click the Default Accounts tab.
4. From the Refund clearing drop-down, select an account.

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 Accounts Payable (AP) entries in the same manner that you use the clearing account for the credit side of the AR reversal entries.

Refunding credit invoices

From the Credit invoices window, you can perform the following:

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

Do the following to process refunds:

1. From the Staff site, go to Finance > Closing procedures > Credit invoices.
2. Select the invoices to be processed for refund or enable the Select All option.

Note: Above the Record Refunds button, the informational message details whether the refund will be recorded to the original payment method or to the refund clearing account. If the refund method is not correct, be sure to check the Refund method for credit invoices setting. See Setting the default refund method for more information.

3. Click Record Refunds.
4. Review the warning message, then click OK.
5. Open the file after it downloads to your browser window.
6. Click the Logs tab to review the refund history, and to also redownload any CSV file.

If Issue checks is the selected Refund method for credit invoices and you use multiple financial entities, the owner entity for the generated transaction is assigned according to the owning entity of the initial sales-related transaction. iMIS appropriately uses AR from the initial transaction, and uses the Refund clearing account from the default tables for the owning entity.

Note: Use the generated report as the basis for the refund items, which should be processed in AP. The refund clearing account should be entered as the AP offset or distribution account, bringing the net effect on the clearing account to zero.

This feature allows you to perform single or mass write-off of debit or credit balances based on a user-defined cutoff date and a maximum dollar amount.

After choosing a cutoff date and maximum dollar amount of either credit or debit, you can select specific invoices to write off, or you can choose to write of all invoices that meet the criteria.

A default GL account number that offsets the credit or debit created by the write-off process will be written. For example, if you write off credit balances, iMIS creates a debit to the default AR account and a credit to the write-off offset account specified in the finance settings.

Setting the default write-off amount

Do the following to set the default write-off amount:

1. From the Staff site, go to Settings > Finance > General.
2. Enter a default dollar amount in the Default max invoice amount field.
3. Click Save.

Entering the default write-off offset account

Do the following to enter the default write-off offset account:

1. From the Staff site, go to Settings > Finance > Financial entities.
2. Select the desired financial entity for which you want to select a write-off offset account.
3. Click the Default Accounts tab.
4. From the Write-off/Offset drop-down, select the GL account number to which you will be recording the write-offs.
5. Click Save & Exit.

Processing write-offs

Do the following to process write-offs:

1. From the Staff site, go to Finance > Closing procedures > Invoice write-offs.

Note: The Cutoff date field defaults to the system date and the Max invoice amount field defaults to the amount specified in the Default max invoice amount field (Settings > Finance > General). You can overwrite either or both of these fields as needed. iMIS writes off all debit or credit balances where the INVOICE_DATE is equal to or older than the date specified in the Cutoff date field and the balance is equal to or less than the amount specified in the Max invoice amount field.

Note: The Max invoice amount field is required, and cannot accept non-decimal values, negative values, letters or special characters.

2. Override the Cutoff date and Max invoice amount as desired, select an Invoice type of Debit or Credit, and click Find. A list of all records that meet the Cutoff date and Max invoice amount criteria are displayed. Select these records for write-off by:
   • Selecting an individual record
   • Selecting all records
3. Export a list of all displayed items by clicking Export for an audit report before processing the actual write-offs.
4. After you verify that the records selected for write-off are correct, click Record Write-Offs to process the actual write-offs.
5. A message is displayed, asking you to verify that you would like to continue with the write-off process. Click Yes.

To view the write-off, post the associated batch. From the Staff site, go to Finance > Batches, then search for the batch. See Managing batches for more information.