Adjustments to accounts receivable balances can be entered in Practice CS in the form of Credit Memos, Debit Memos, and Write-Offs.

Credit Memo

Credit memos reduce accounts receivable. They can be applied to invoices, service charges, and debit memos.

To enter a credit memo: 

1. Choose Actions > Receipt & Adjustment Entry.
2. Enter a Control Date.
3. Click the Adjustments tab.
4. Enter the Date. This is the date the transaction will be posted.

   Note: You can change the date to default to the Control date or Today's date in Setup > User Preferences on the Receipt & Adjustment Entry tab.

5. Enter or select the Client.
6. Select CM in the Type field.
7. (Optional) Enter a Reference Number. The Reference Number field is 30 characters of text that can be used for any purpose.
8. Enter the amount of the credit memo in the Amount field.
9. If the apply screen does not open automatically, click the ellipse button  between the Amount and Applied amount columns. Enter the amount of the credit memo that you would like to apply next to the invoice or debit memo that you wish to apply it to.
10. Enter a comment if desired. This field is usually used to describe the reason for the credit memo and who requested or authorized it.
11. Press ENTER or TAB on your keyboard to complete the transaction and move the cursor to the next transaction.

Debit Memo

Debit memos increase accounts receivable. They cannot be applied to other items. Credit items are applied to debit memos. You can think of a Debit Memo as an invoice with no time, expenses, or WIP. 

To enter a debit memo:

1. Choose Actions > Receipt & Adjustment Entry.
2. Enter a Control Date.
3. Click the Adjustments tab.
4. Enter the Date. This is the date the transaction will be posted.

   Note: You can change the date to default to the Control date or Today's date in Setup > User Preferences on the Receipt & Adjustment Entry tab.

5. Enter or select the Client.
6. Select DM in the Type field.
7. (Optional) Enter a Reference Number. The Reference Number field is 30 characters of text that can be used for any purpose.
8. Enter the amount of the credit memo in the Amount field.
9. Enter a comment if desired. This field is usually used to describe the reason for the credit memo and who requested or authorized it.
10. Press ENTER or TAB on your keyboard to complete the transaction and move the cursor to the next transaction.
11. If you use approval and posting, post the debit memo.

Once you enter the debit memo, you might want to apply a receipt to it. If you don't, the debit memo will be an open amount in the client's A/R. If you haven't received payment yet, you can skip these steps for now and come back to them later. 

1. Go to the Receipts tab in Receipt & Adjustment Entry. 
2. Find the receipt you want to apply to this debit memo. There might be more than one; it's up to you.
3. If you use approval and posting, unpost the receipt.
4. Click the three dots button in between the Amounts and Applied Amounts columns.
5. You should see the Debit Memo in the list. For the debit memo, use the Applied Amount column to type in the amount of this receipt you want to apply to the Debit Memo. 
6. Click OK.
7. If you use approval and posting, post the receipt.

Write-off

Write-offs reduce accounts receivable. They can be applied to invoices, service charges, and debit memos. Write-offs are similar to credit memos and are usually used to distinguish the reason for reducing the accounts receivable in the general ledger.

To enter a write-off:

1. Choose Actions > Receipt & Adjustment Entry.
2. Enter a Control Date.
3. Click the Adjustments tab.
4. Enter the Date. This is the date the transaction will be posted.

   Note: You can change the date to default to the Control date or Today's date in Setup > User Preferences on the Receipt & Adjustment Entry tab.

5. Enter or select the Client.
6. Select WO in the Type field.
7. (Optional) Enter a Reference Number. The Reference Number field is 30 characters of text that can be used for any purpose.
8. Enter the amount of the credit memo in the Amount field.
9. If the apply screen does not open automatically, click the ellipse button  between the Amount and Applied amount columns. Enter the amount of the credit memo that you would like to apply next to the invoice or debit memo that you wish to apply it to.
10. Enter a comment if desired. This field is usually used to describe the reason for the credit memo and who requested or authorized it.
11. Press ENTER or TAB on your keyboard to complete the transaction and move the cursor to the next transaction.

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