PSA A/R - Credit Memos: How to issue discounts or credits

How to issue discounts or credits

The very most efficient way to create a credit or a discount in the PSA software is to use the Credit screen to add a discount or credit for the customer and then apply that credit to that customer's invoice.

Below, please find a tutorial on the two options for adding and applying a credit or a discount.

Recommended option: Use the Credit Screen

This (highly recommended) option has you add the invoiceadd a credit or discount on the Credit screen → Create a payment and apply the credit. Click here to go to the second option. See the following steps which shows a specific example of tuition invoiced, credit added and applied, and payment applied.

  1. Your customer's tuition is due so you create an invoice for the tuition amount. Note, the delete button is present.
  2. Your customer gets a 10.00 credit or discount, so you add that in the Credit screen. Note, the delete button is present.
  3. Your customer has now paid you, so you go into the payments screen and apply the credit and the payment. 

    When you go back into the payment screen, you note that the delete button is present.
  4. If you delete the payment, you will note that the payment is gone and the credit and invoice go back to the same state they were in before you applied the payment, including the delete button is present.



Second Option: Add a negative line to the invoice

This option has you add the invoice including a negative line item for the credit or discount → When submitted this automatically creates a credit and applies it as a payment so the invoice is submitted as partially paid and cannot be deleted or modified. Then, you must create a payment when the customer pays.

  1. Create an invoice and include a discount or credit line.
  2. When you go back into this invoice, you cannot delete it or edit it because when you submitted the invoice it created a credit memo and automatically applied it against the invoice. The invoice is considered partially paid. Also, the negative line item is no longer visible.submitted_inv_with_neg_amt.jpg
  3. It is possible to pull up the applied credit in the payment screen, but there is no delete button because this payment was system generated.
  4. It is also possible to bring up the credit in the credit screen, but there is no delete button here either for the same reason.

    The obvious con of this option is that if you make a mistake, you have no way to remove or edit the invoice or subsequent payment or credit.  



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