Applying Customer Credits

The Apply Customer Credit option setting within the Recurring Billing process dialog gives the user the option to apply any existing credits to the new recurring billing invoice. A partial payment to the new invoice will occur if the credit is less than the amount of the new invoice. The credit will be reduced but not eliminated if the new invoice is less than the amount of the credit.

The following general ledger transaction will be created using the accounts receivable account listed within the recurring invoice settings. Review the Invoices > Processing a Sales Invoice section for more details on the general ledger transactions created within a sales invoice.

Debit/Credit	GL Classification	ID	Amount
Credit	Accounts Receivable	Customer ID	Recurring billing invoice total
Debit	Credit Clearing Account	Customer ID	Recurring billing invoice total
Credit	Accounts Receivable	Customer ID	Negative amount of recurring billing invoice
Debit	Credit Clearing Account	Customer ID	Negative amount of recurring billing invoice

The debit transaction uses the Credit Clearing Account instead of the usual cash G/L account. Since the sum of the credit and the recurring invoice is zero, the cash account balance will be unchanged.

Select Sales > Options from the main EBMS menu and open the Recurring Billing tab as shown below:

The Credit Clearing Account is only used when a credit is applied to a recurring billing invoice. It is recommended that the standard cash account is used for this setting. Review the Customer Payments > Payment Options section to review the cash account setting.

Review the Recurring Billing Process section to enable the Apply Customer Credit option.