Customer transactions types

You can post seven transaction types in Customer Transaction Entry: invoice, service charge, rebate, miscellaneous credit, credit memo, debit memo, and reversal. You can enter these transaction types on the same journal.

Invoice: Invoices can be created automatically in Sales, or manually in Customer Transaction Entry. Use Customer Transaction Entry to create invoices for charges, such as rent, that are not product related. Invoices that are entered in Customer Transaction Entry have a suffix of 99. Invoices that are created by the Sales Entry Invoice Processing Report are assigned an invoice number with a suffix ranging from 00 to 98.
Service Charge: Service charges are created for miscellaneous charges to a customer. For example, a customer who is overdue on their payments may receive a $5 charge.; Service charges are generally created through the Customer Entry Roll Balances Report, but you can enter them manually in Customer Transaction Entry. The function in which they are created depends on whether service charges are allowed, based on Customer Setup or Customer Master Group Setup records.; You can enter a service charge in Customer Transaction Entry even if service charges are not allowed. You receive a warning message but can continue. Service charge transactions function similarly to invoice transactions except that the invoice number on a service charge initially defaults to today’s date with a suffix of 99. You can override it. A service charge transaction is independent of any invoice transactions. The number associated with the service charge must be unique.; When you enter a service charge transaction, manually distribute the amount to General Ledger. In the General Ledger distribution Transactions grid, Service Charge is displayed in the Account Type column instead of Sales/Income.

Rebate: You can apply a rebate or credit a rebate to a customer’s account. For example, if you enter and invoice process an invoice with a $5 rebate on it, the customer’s Rebate Due and Rebate YTD accounts are affected. After you pay this rebate, enter a rebate transaction to clear the customer’s Rebate Due account. A rebate is not associated with a specific invoice. You cannot specify an invoice number. Rebates also have no effect on General Ledger; they only affect the Customer files. You can enter a positive or negative rebate amount. Enter a negative amount if you want to credit the customer for a previously applied rebate. When you do credit a rebate, the Rebates YTD amount on the Customer Setup record does not decrease.; An inactive audit trail transaction is updated to the Customer Transaction Entry transaction file when you post a rebate. The Rebates Due and Rebates YTD values in the customer record are updated.
Miscellaneous credit: Use a miscellaneous credit to apply a credit to a customer without applying it to a specific invoice number. Miscellaneous credits are not applied to any particular invoice until you select the credit transaction type in Customer Cash Receipts Entry or choose to apply them the next time you enter a payment.; For example, a customer sends you a check with instructions to apply it toward their outstanding balance but does not specify which invoices. If you do not want to apply this money to a specific invoice without getting a confirmation from the customer, enter the check as a miscellaneous credit so the customer’s account balance shows the correct amount.
Credit memo: You can apply credit memos to existing invoices and service charges. You can also apply a credit memo to a COD if you first convert the COD to a regular invoice. The credit memo invoice number has a suffix of 99 to indicate that you entered it in Customer Transaction Entry. The amount of the credit memo cannot be more than the remaining balance on the transaction. If the credit is more, apply the full amount to the transaction and create a miscellaneous credit for the remainder.; You are not required to enter the amount as a negative. When a credit memo is applied, it inactivates scheduled payment transactions and possibly the original invoice or service charge transaction if it is fully paid. If the credit memo applied is less than the remaining balance of the scheduled payment, a new scheduled payment is created for the remaining balance.; When you enter a credit memo, neither Sales Manager nor Product records are updated.; Enter credit memos when no product is involved. If a customer is returning inventory to you, enter a Returned Merchandise (RM) transaction in Sales Order Entry, which impacts Product records. When the Sales Entry Invoice Processing Report is run, the customer’s account is updated.
Debit memo: Use debit memos to increase the amount of an existing invoice, such as for freight charges. You can apply debit memos to invoices or service charges. The invoice number of the debit memo has a suffix of 99 to indicate that it was entered through Customer Transaction Entry.; The amount of the debit memo is applied to the amount of the invoice, and a new scheduled payment transaction(s) is created in the Customer Transaction Entry transaction file.
Reversals: Use reversals to correct an invoice or service charge that may have been entered in error or to reverse unapplied cash transactions. You can only enter reversals for existing invoices, COD invoices, miscellaneous credits, or service charges that are active and have not had payments or credits applied to them. The amount of the reversal defaults from the invoice or service charge being reversed, and you cannot override the amount. No payment terms can exist on a reversal, and the General Ledger distribution is automatically reversed based on the journal number/set number stored on the invoice or service charge.; If the invoice you want to reverse was created in Sales Order Entry or the Sales Entry Invoice Processing Report, reverse it in Sales. If you reverse a Sales invoice using Customer Transaction Entry, the General Ledger is not impacted and your accounts are out of balance.; You can reverse unapplied cash transactions that are created in Sales Order Entry Received On Account through Customer Transaction Entry. General Ledger Distribution information is displayed, and you must specify the offset account number.