City Ledger Existing Credits

Direct Bill accounts allow you to carry a credit (over payment) on the direct bill account. These are called Existing Credits. When posting payments to a direct bill account, you can check the Post Unapplied Amount to account as credit checkbox which will leave any existing over payments on the direct bill account. Use this option if a company sends you an advance deposit prior to any invoices being applied to the company account.

Using an Existing Credit

When paying invoices using the Payment & Adjustments option - after selecting the account, you can select the option to "Use Existing Credits". The amount of the check (payment) as well as the existing credit will be combined. Simply tag all invoices being paid as normal. If you just want to use an existing credit with no actual payment, simply use the same method but leave the check amount as zero.

1. Select City Ledger/Company Master from the Back Office Menu.
2. Select Payments and Adjustments.
3. Select Payment and press Next.
4. Select Company and press Next.
5. Select Yes under "Company has existing Credit". If the company also is sending a check (combining with actual payment), enter the check amount. If you are just using the existing credit, leave the check amount as zero.
6. Press Finish.
7. Tag invoices and Apply payments in a normal fashion.
8. Press Finish.

Refunding an Existing Credit

There may be a time when you must simply refund a check if a company has an existing credit rather than use it towards open invoices. This is done by simply creating an invoice, applying the refund and then paying the invoice.

1. Select City Ledger/Company Master from the Back Office Menu.
2. Select Company Master.
3. Find the company and press Change.
4. Select the Invoices tab.
5. Press Add Invoice button.
6. Select an account for refunding (299, 600, 203, etc.) on how you wish to refund the money.
7. Enter the amount.
8. In the voucher field, put a check number for the return or an explanation.
9. Press OK.
10. Exit back to main City Ledger menu.
11. Select Payments and Adjustments.
12. Press Next.
13. Find company and press Next.
14. Select Yes under "Company has existing Credit" and leave amount field Blank.
15. Press Finish.
16. Highlight new invoice, press Pay Invoice created above.
17. Press Finish.

Moving an Existing Credit

There are some instances when an existing credit needs to be transferred from one company to another. The Move Credit option under Payments and Adjustments is used.

1. Select City Ledger/Company Master from the Back Office Menu.
2. Select Payments and Adjustments.
3. Select Move Credit and press Next.
4. Select the Company with the existing credit and press Next.
5. Select the Company the existing credit is moving to and press Next.
6. Press Finish.
7. Press OK to confirm.

Moving a portion of an Existing Credit

There are some instances when a portion of an an existing credit needs to be transferred from one company to another.

1. Select City Ledger/Company Master from the Back Office Menu.
2. Select Company Master.
3. Find the company with the existing credit and press Change.
4. Select the Invoices tab.
5. Press Add Invoice button.
6. Select the Cash Refund/Paid Out account, 299 by default.
7. Enter the amount of the existing credit to move.
8. In the voucher field, enter the company name the credit is moving to.
9. Press OK.
10. Exit back to main City Ledger menu.
11. Select Payments and Adjustments.
12. Press Next.
13. Find company and press Next.
14. Select Yes under "Company has existing Credit" and leave amount field Blank.
15. Press Finish.
16. Highlight new invoice created above and press Pay Invoice .
17. Press Finish.
18. Select Payments and Adjustments.
19. Press Next.
20. Find the company to receive the portion of the existing credit and press Next.
21. Enter the cash account code, 200 by default, to post the existing credit.
22. Enter the amount of the existing credit the company is receiving and press Next.
23. Press Finish.
24. Check Post Unapplied Amount to account as credit(Existing Credit)
25. Press Finish.

If one Existing Credit is being spread among multiple companies, a single refunding entry can be made to the company the existing credit is being transferred from, steps 1 through 17. Then use steps 18 through 25 for each company receiving a portion of the existing credit.

Note: The amount refunded and the amount(s) reposted must be equal or your cash will be out of balance for the day.