![]() Refund Retainer: This credit option is used to refund clients for their retainer.It can also be given as a refund on a payment. Project Credit: Credit is given to the clients in favor or exchange for something.Mark Screen as Favorite Field Descriptions Field Name You should use them independently of one another: credit memos to pay back the credit liabilities of a client (Accounts Payable) and credit payments to reduce the outstanding amount on invoices (Accounts Receivable). Note: Credit memos are not linked to the 'Credit' type payments in CORE. Refund retainers: You can create a credit memo for a client to refund a retainer and then pay the amount to the client.Ĭlick to watch this video on using credit memos in CORE.įrom the accounting perspective, credit memos debit and decrease your income account on the other hand they credit and increase your A/P.Enter project credits: You can create a credit memo for a project, post it to the relevant account and later pay this liability to the client.So credit memos in CORE can be used to facilitate two basic functions: That also registers as an expense on the accounting side, lowering your net income and profit. Both are liabilities that credit your Accounts Payable and can be paid off to the client. You can use the Credit Memos screen to issue project credits or retainer refunds to your clients. That reduces your A/R, lowering your total income and profit. Instead, you can use the 'credit' payment method in the Payments screen to do that. However in CORE, credit memos cannot be used directly on invoices to affect the overall amount due or A/R. This type of client credit is a liability that must be refunded to the client or adjusted on invoices. This might be done as a courtesy or for any other reason, such as dissatisfaction over some project work. Typically, credit memos are issued by product or service providers to their clients to reduce the amount owed (accounts receivable) by them on previous invoices. Note: Help content (except videos) has been updated to reflect the UI/UX changes in CORE.
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