When you need to offset the amount billed to a client, issue a credit to the account. This will NOT involve any transfer of money to the client and is not to be confused with a refund. Rather, a credit will reduce the balance owed by the client. For example, if there is an outstanding balance of $15 and rather than pursue that amount at the end of a case (or if the client is non-responsive or unable to pay), the firm may elect to write off this amount. Issuing a credit will result in a record that can be useful in accounting and determining how much the firm has been unable to collect. This is a better approach than reducing the contract amount or reworking the ledger to make it appear as if the money was never owed. A credit will reduce the balance owed, but without changing the total amount that was originally worked/billed by the firm.

Also, a credit will appear as a line item on the Bill and Account Statement to demonstrate the write off that the firm incurred. If the firm is extending this credit as a courtesy to the client, having it appear on the bill / statement will communicate more than simply changing the amount of the contract for example.

  1. Go to Matter->[Billing] OR Billing->Invoicing section
  2. Click on 'Issue a Credit' button
  3. Complete the form and required fields including the contact, matter (optional), amount, and the date issued.  You have the option of including the credit in an invoice statement.
  4. Click on the Credit button to save and finish