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.
- Go to Matter->[Billing] OR Billing->Invoicing section
- Click on 'Issue a Credit' button
- 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.
- Click on the Credit button to save and finish
