Debit Memos

Overview

Debit Memos are utilized for correcting invoices, typically issued to customers for various reasons such as NSFs, chargebacks, or negative invoices. They increase the total open balance for the customer, and facilitate book closure by allowing the accountant to issue a debit memo for additional funds. Debit Memos can be paid by applying a new payment or a credit memo. Debit memos are particularly useful when there is the need to correct an undercharged invoice in an already closed accounting period.

Specifics

Permissions

Permissions for Debit Memos must be enabled for users to access the Debit Memo section (Central Access) and perform actions such as viewing (Read), editing (Write), deleting (Delete), or exporting (Export) a debit memo to Excel.

This can be done in Company - Users.

Create a Debit Memo

• Navigate to Accounting - Debit Memo.
• Right-click anywhere in the left grid and select Issue New Debit Memo, or click on Debit Memo at the top left corner. 

In the Add/Edit Debit Memo window, the "Customer" and "Message" fields are mandatory in order to create a Debit Memo. 

1. Message (mandatory field): The user has the option to either manually type a message or select from existing templates that can be created and saved.
2. Disclaimer: The user can create a new disclaimer or choose an existing one.
3. Line Items: The field is designated for entering the actual debit memo along with its corresponding amount.
4. Comments: This field is for internal comments. 

• Once created, the debit memo will appear in the "Debit Memo Activity" grid on the right. Right-click on it for multiple options including printing, editing, emailing it.  

Payments / Credit Memos Distribution to Debit Memos

• The debit memos can be paid down by applying a payment or a credit memo to them. 
• In the screenshot example below, the debit memo was for $100. A check payment of $40 and a credit memo for $10 have been applied to it. 
• The "Payments / Credit Memos Distribution to Debit Memos" grid in the Debit Memo screen displays both adjustments. The actual debit memo's balance as well as the customer's total debit memo balance has changed to $50. 

Debit Memos Default Settings

• Navigate to Company - My Company -  Messages and Disclaimers.
• From this section, you can create general defaults for Program Messages, Disclaimers and Email Messages. 

Reports

Debit Memos are now part of the following reports: 

• Accounting - Debit Memo - Reports (Summary & Detailed)

• Reports - Report Central - Accounting - Debit Memo (Summary & Detailed)
• Reports - Report Central - Accounting - AR Aging
• Reports - Report Central - Accounting - Collection
• Reports - Report Central - Accounting - Transaction
• Reports - Report Central - Accounting - Open Balance Account

• Accounting - Ledger