Misc Credits
This document covers 4 different types of AR Credits that can only be entered by Head Office.
This procedure covers entering Misc Credits against Customer accounts. This does NOT cover credits for returned merchandise. Credits for returned merchandise must be entered by the branches using order entry with a Return Merchandise transaction type. Likewise, credits for freight billed by the branches, needs to be credited by the branches using Return Merchandise type orders.
1 - Entering Credits for Rebates Received from Manufacturers
Customers can opt to have their manufacturer points converted to a credit that is sent directly to Central. When the credit is received by the Purchasing Department, they will provide the credit information including the customer and amount received.
Address Bar: ARET
Menu drop down: Customer>Entry>Customer Transaction
An Open Journal Popup Appears.
Generally, the posting period and posting date remain as today, unless otherwise instructed by management.
Click <OK>
Enter the customer number
Type: Misc Credit
Click <NEXT>
Invoice: Enter the credit number
Amount: enter the amount of the credit.
Date: enter the date the credit was issued by the manufacturer.
Reference: enter an appropriate reference such as ‘HUNTER REBATE’ for rebate received from HUNTER.
Uncheck the Sales Year to Date box.
Click <NEXT>
Click <+ADD>
Enter 0-00-1311 for the GL Account Number
Click <OK>
Click <SAVE>
Misc Credit is now ready to be posted against the account.
2 - Entering Credits for Misc Small Amounts Open on Customer Accounts
From time to time, a small balance will be left open on a customer’s account and there is a need to clean it up. Misc Credits should only be entered with the AR Manager’s approval to clear up old small balances.
**This process can NOT be used to write off interest (service) charges
Address Bar: ARET
Menu drop down: Customer>Entry>Customer Transaction
An Open Journal Popup Appears. Generally, the posting period and posting date remain as today, unless otherwise instructed by management.
Click <OK>
Enter the customer number
Type: select Misc Credit
Click <NEXT>
Invoice: Enter the date YYYYMMDD.
Amount: enter the amount of the credit.
Date: Should be today’s date
Reference: enter an appropriate reference such as ‘W/O Balance’.
Uncheck the Sales YTD box.
Click <NEXT>
Click <+ ADD>
Enter 0-XX-4310 for the GL Account Number where XX is the store number that represents the customer’s home warehouse
Click <OK>
Click <SAVE>
MISC Credit has been posted and is ready to be applied.
3 - Entering Credits for Large Amounts for Promotions or Merchandise
Address: OEET
Menu: Sales>Entry>Order
Bookmark: OEET – Order Entry
Customer number: Enter or search for account number
Warehouse: the store number that is the ‘home’ store for the customer
Order Type: Correction
Ship to: (if applicable)
Customer PO: use some an appropriate description for the credit. If it is rebate of any sort, use ‘Merchandise Credit’.
Ship Via and Disposition as originally invoiced
Click <NEXT>
Correction Popup Box will appear.
Return Adjust Reason: Main Office Use Only
Click <NEXT>
Click <YES>
Line Type: Non-Stock. Then click in the white box labeled Product.
A Non-Stock popup box appears
Product: Something Descriptive like ‘CREDIT’
Description: Enter as much detail as possible. There are 2 fields that can be used. Example: TORREY PINES MERCHANDISE CREDIT 2021 PURCHASES.
Enter 99B for the Category.
Enter the amount of the credit in the price box. The amount that is entered should be the pre-tax amount. You may need to look up the tax rate for the correct tax jurisdiction first and determine the amount of the credit. The tax rate that will be used is the store’s tax rate that the credit is entered under. For example, if we are crediting a customer $1000 in total and their current tax rate for that store is 7%, the amount that you will enter in the Price Field is 934.58 (1000/1.07).
Click <SUBMIT>.
HINT!!
Please also note, that if the customer is set as non-taxable the amount should be the full amount of the credit.
Click <ADD> to include this to the order.
Click <Taxes & Totals> to ensure the total amount of the credit is the correct.
If the total is correct, Click <FINISH>
If not correct, update the order as necessary.
4 - Entering Credits for Larger Amounts issued to Resolve Disputes
Address: OEET
Menu: Sales>Entry>Order
Bookmark: OEET – Order Entry
Customer number: Enter or search for account number
Warehouse: the store number that is the ‘home’ store for the customer
Order Type: Correction
Ship to: (if applicable)
Customer PO: use some an appropriate description for the credit. If it is rebate of any sort, use ‘Merchandise Credit’.
Ship Via and Disposition as originally invoiced
Click <NEXT>
A Correction Popup Box will appear.
Return Adjust Reason: Main Office Use Only
Click <NEXT>
Click <YES>
Product: MISCITEMS
Enter the amount of the credit in the price box. The amount that is entered should be the pre-tax amount. You may need to look up the tax rate for the correct tax jurisdiction first and determine the amount of the credit. The tax rate that will be used is the store’s tax rate that the credit is entered under. For example, if we are crediting a customer $1000 in total and their current tax rate for that store is 7%, the amount that you will enter in the Price Field is 934.58 (1000/1.07).
Click <ADD>
Please also note, that if the customer is set as non-taxable the amount should be the full amount of the credit.
If the order has a Disposition of Will Call, the taxes that will be refunded will be the jurisdiction of the store entered. To change to the customer’s tax jurisdiction, on the Header Screen change Disposition from Will Call to None.
Click <Taxes & Totals> to ensure the total amount of the credit is the correct.
Click <Finish>
Approve the order in OEIR Credit Release.
Allow the system to process the credit in the overnight process.
If there is an immediately need for this credit to process, contact AR to process the credit in invoice processing OEEPI.