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Transfer a credit from one job to another job under the same customer

Consider this scenario:

  1. You agree to do work for a customer under two different jobs.
  2. You finish work on the first job and invoice the customer.
  3. The customer pays the Invoice in full.
  4. The customer asks for a credit because he actually did a small portion of the work. He asks that the credit be applied to the second job.
  5. You enter a Credit Memo for the first job so that the Job Costing reports will be correct. But you need to move the amount of the credit to the second job.
Possible Solutions

Solution 1.

You could use Journal Entries to move the amount of the credit first to a Clearing Account, and then to the second job. However, this requires you to link a Journal Entry to a Credit Memo and that can put your cash basis balance sheet out of balance.

Solution 2.

You could issue an Invoice to offset the all or part of the credit memo. This avoids the cash basis balance sheet issue, but the Job Costing reports will be distorted.

Preferred Solution.

 Solution 3.

When you create the Credit Memo for the first job, the result is an overpayment. The preferred solution is to:

  • Edit the Payment for the first job.
  • Change the amount to the amount to make A/R balance zero.
  • Then, enter a new Payment for the second job for the balance of the payment.
KB ID# HOW12222
4/17/2014 8:42:22 AM
PPRDQSSWS406 9102 Pro 2013 17b24c