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Credit Memo for Invoice

Can this be done?

We have an event - it's cost is $450. member signs up, invoice is produced and the member pays $450. - nice and clean

Then, for a host of reasons, the cost is reduced at a later date by $80 and a refund check is issued. I want to issue a credit memo for the $80 so the member has this on their account and then we record the refund check issued and the account is back in balance.

The net revenue for this event is $370.

How can we do this?

Thank you in advance,

Patty

11 votes
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    PattyPatty shared this idea  ·   ·  Flag idea as inappropriate…  ·  Admin →
    FSSAMemberDirFSSAMemberDir shared a merged idea: Allow admin to void invoice instead of having to delete  ·   · 

    17 comments

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      • FSSAMemberDirFSSAMemberDir commented  ·   ·  Flag as inappropriate

        Allow admin to void invoice instead of having to delete
        I feel this would be more acceptable bookkeeping practice

      • J BuckleyJ Buckley commented  ·   ·  Flag as inappropriate

        We have all kinds of bookkeeping issues with this as well and would LOVE to see better accounting controls put in place - several have been mentioned on this thread.

        Thank you!

      • BeardoBeardo commented  ·   ·  Flag as inappropriate

        Another example where this feature is needed significantly:

        Member "A" registers for a paid event. He settles the Invoice. He then cancels his participation shortly before the event because he can not attend. He gifts his money to Member "B" who he knows personally and that joins very late.

        Right now, the system automatically generates two invoices. One for both members. The first is settled, the second has to be "settled" manually with a tender like "gift". I then have to refund the money manually to member "A" but only in WA virtually since the money stays on my bank account. Otherwise the tax revenue office would count double credit.

        What if I would want to refund part of the event registration money to the event participants because afterwards it reveals itself that the event was less expensive than expected. If I want to refund money partially I need to have the credit booked with my finances. Otherwise the tax revenue office only sees income but no credits.

        Reversal Invoices and Credit/Deposit documents are needed to take account of every financial movement. I was astounded that when I cancel the registrations at events, the invoices are DELETED too…

        This is really not tax payer friendly. I have solid accounting and this leaves gaps everywhere. I really need to see the finance accounting extended OR an interface to external accounting software that is able to do it.

      • Carla NagelCarla Nagel commented  ·   ·  Flag as inappropriate

        Just a message that we (based in the Netherlands) fully agree with the request below.

        [quote user="TBOC"]

        That might work for the record keeping in the software but not for tax office reports. An invoice must be reversed properly by a reversal invoice which can be booked and printed out to place it behind the initial invoice.

        A system implemented feature could also be that the invoice is only manually generated AFTER the payment was settled (as it can be done with popular shop software). Manually generated invoices would prevent that the system generates invoices while the payments never get settled.

        Now the system generates an invoice which must be settled but it would be more convenient if it would be handled like a "shopping cart".

        1) You order a membership.

        2) You settle the payment.

        3) if the payment wasn't made within a defined grace period, the order will be deleted.

        4) if the settlement was done, the system generates an invoice.

        This is spares a lot of work [/quote]

      • BeardoBeardo commented  ·   ·  Flag as inappropriate

        That might work for the record keeping in the software but not for tax office reports. An invoice must be reversed properly by a reversal invoice which can be booked and printed out to place it behind the initial invoice.

        A system implemented feature could also be that the invoice is only manually generated AFTER the payment was settled (as it can be done with popular shop software). Manually generated invoices would prevent that the system generates invoices while the payments never get settled.

        Now the system generates an invoice which must be settled but it would be more convenient if it would be handled like a "shopping cart".

        1) You order a membership.

        2) You settle the payment.

        3) if the payment wasn't made within a defined grace period, the order will be deleted.

        4) if the settlement was done, the system generates an invoice.

        This is spares a lot of work

      • lormorlormor commented  ·   ·  Flag as inappropriate

        Yes, we need to be able to issue credit memos, too! Changing the original invoice amount is not okay from an accounting standpoint. Credit memos are very common and are important function. I will ask our treasurer if creating a "credit memo" tender type would work for us.

      • BeardoBeardo commented  ·   ·  Flag as inappropriate

        I found that there is no real bookkeeping for cancelled or refunded invoices in the system. When an invoice is refunded it shows an "open balance". All I can do is to delete that invoice.

        This is however making more trouble to the bookeeping for the taxes. Since invoices have to be numbered in an ongoing order, I have to take the printout of the orginal invoice and manually write "reversed" (or "cancelled") on it.

        What I would like to propose is an "reversal invoice" feature where I can generate an reversal invoice that has a "negative" value which then neutralizes the open balance for the original invoice.

        Then I just print out the reversal invoice in addition to the original one and put them together for taxes bookkeeping. This would be technically 100% correct bookkeeping.

        Is this much effort to accomplish?

        Thank you in advance.

      • Evgeny aka Apricot KernelAdminEvgeny aka Apricot Kernel (Product Manager, Wild Apricot) commented  ·   ·  Flag as inappropriate

        Well, while you can it this way, from financial point of view you should not change initial invoice, instead you need to produce credit note for required amount and issue refund for that. Exactly as it was described in the initial comment.

        Credit notes were part of our financial module scope but we have removed it in the very end and put into future changes queue. Thanks for noting about this, I will mark the feature in our queue but I cannot tell you time estimates.

        Moving into Wishlist - if anybody finds credit notes important for their workflow, please comment.

      • Fluid ApricotFluid Apricot commented  ·   ·  Flag as inappropriate

        Hello Patty,

        Sure this is possible, its just a matter of adjusting the invoice amount and recording the refund.

        i.e. Update the event invoice to indicate the new cost, see http://help.wildapricot.com/display/DOC/Adjusting+or+canceling+an+invoice (this will leave a "credit" or unused payment of $80 on the account). Once the refund check is issued you then record the refund and settle it with the $80 payment, see http://help.wildapricot.com/display/DOC/Refunds#Refunds-Record'onaccount'refund

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