Debtors - Applying (Absorbing) Credits to Other Invoices

At times families may have credit invoices that need to be applied/absorbed to other invoices before sending out accounts or performing an end of year rollover. This can be achieved automatically through debtors end of period or manually through receipt entry.

Automatic Absorption of Credits in Debtors End of Period is a quick click process. Credits are applied to transactions in date order or cost centre order.  As this is an automated process you cannot be selective on what transactions the credits are applied to or which families are processed.

Manual Absorption of credits in Receipt Entry is slower as it is done on a family by family basis but this does allow you to apply credits to selected invoices.

OPTIONS

1. Automated Application of Credit.
2. Manual Application of Credit

OPTION 1 – Automated Application of Credit.

STEPS

1. Backup invoice file 20 (recommended).
2. Select the appropriate fields in Debtors End of Period.

STEP 1: Backup invoice file 20 (recommended)

We recommend that you back up invoice file 20 so you can reinstate invoices in-case a computer malfunction occurs during the process or you don’t like how the credits were applied. For further information on how to back up an individual file refer to ‘Backing Up Within PCSchool’ helpfile.

STEP 2: Select the appropriate fields in Debtors End of Period.

Path:  Debtors > Debtors End of Period

1.  Select Utilities Only.
2. Tick Consolidate Debtor Invoices.
3. Select how you would like to absorb the credits.
4. Click OK to return to Debtors end of Period Screen.
5. Begin Process.

NOTE: This process can be completed as part of an end of month or end of year roll over. Instead of selecting utilities only select relevant fields as per your normal end of month/year roll over along with consolidate debtor invoices. 

OPTION 2 – Manual Application of Credit.

STEPS

1. Create a new receipt.
2. Apply the credits to selected invoices.

STEP 1: Create a new receipt.

 Path:  Debtors > Receipt Entry

1. Type in a batch description.
2. Check the default bank account is correct.
3. Click in the receipt entry box.
4. Click on New Receipt.
5. Enter the date you wish to record the transactions and the relevant family key.
6. Tab down to alter the amount to zero and the tender to CA.
7. Click on the debtors tab.

STEP 2: Apply the credits to selected invoices.

1.  Tick the apply box of the credit line.
2. Tick the invoice(s) you wish to apply the credit to (you can apply partial credit amounts to different invoices by entering a value in the Apply $ column).
3. Click on New Receipt to enter in another receipt.
4. Finalise the batch once all receipts are entered.