Overview

When a customer receives damaged products or product with any other issue, they may request a credit from your company.This credit can then be submitted for review by the sales manager and ultimately Approved or Rejected. If the credit is approved, it will affect the customer invoice and will be reflected as a credit on the customer's statement.


How to issue a customer credit?

There are two possibilities when it comes to create customer credits: create credits associated to an invoice or create Standalone Credits.


Credits Associated to Invoices

To create credits associated to invoices, follow these instructions. You can associated as many credits per invoice as you want.


Instructions

Considerations

  • You can associate several credits to a single product line, as long as the total of the credits does not exceed the total of the product line.
  • The credit total cannot exceed the total of the order.

Go to the Order Entry tab and choose "Add / Edit Credit". The system will open the Add/Edit Credit based on invoice screen by default.

 Use the filters to Search for the order that is going to be credited.

 Go to Actions column and click on the plus icon Add Credits.

Here, you can issue the credit based on your clients needs: Total Units, Amount, Credit Units, and Freight. You can choose to credit Boxes, Units, Hard Goods, and additional charges, depending on what is needed.

 Also, you can select the Return to Inventory option if you would like to move the box back to inventory from this screen.

 Once you add the credit, you can "Make a Comment" and/or "Add Support Documents" such as images.

 Click on Submit for Review, so the credit will be submitted to the sales manager for review. Repeat this process for each credit required to be added to the invoice.

The system will send an email to the salesperson once the customer credit is approved or rejected by the Sales Manager (if the order does not have a salesperson associated, the system will not send any invoice).

Return to Inventory

When selecting this option, the box will remain on the original invoice for check and balances purposes, but a new box code will be returned to Inventory with the same lot number and AWB number that can be used to be sold to any other customer.

Standalone Credits

To create credits not associated to an invoice, follow the next instructions.

Remember to add all the possible items to credit as additional charges so you can add them to standalone credits. This is a mandatory step to be able to create standalone credits. For further information on how to add additional charges read Additional Invoice Charges.

Instructions

Go to Order Entry>>Add/Edit Credit.

Click on the standalone credit link.

A new window will open where you just have to enter the customer name, credit date, credit reasons and click on Save. Once you click on Save the system will create a credit number and the system will display the customer information.

The next step is to associate the Additional Charges to be added to the credit as items to credit. You will also be able to add comments and support files if needed.

Click on Submit for Review to finish. Notice that depending on your role, you also will be able to approve the credit.

Adding and Editing Credit Reasons

Credit Reasons can also be specified while creating a standalone credit by clicking on the Choose Credit Reasons link.

To edit a credit reason already added, review the article How to Edit a Credit. Remember that the credit must be in one of the following statuses to be able to be edited: New, Resubmitted, Pending Review.




(lightbulb)Security Level:

  • Create credits: Users with the Sales Role are allowed to create credits and submit them for review. Sales Manager, and Credit Manager role can also create credits.
  • Approve or reject credits: Users with the Sales Manager role are allowed to approve or reject customer credits.
  • Reopen a credit: Once they are approved, the only roles authorized to reopen a credit, are the Credit Manager and the Sales Manager role.

Users with the Admin role can perform all the actions previously explained.