Invoice Adjustments should be used for write-offs or minor changes that don't affect Project information. For example, if a Client was invoiced $1,985.75 but paid $1,985.00, and you've decided not to pursue the remaining $0.75, an Invoice Adjustment lets you close out the Client Invoice for the correct amount.
More often, though, changes affect Project information — for instance, when a Client changes their mind about an Item. In these cases, don't use an Invoice Adjustment. Instead:
Correct the Item in the Project.
Reverse the original Client Invoice.
Re-invoice the Items with the correct amounts.
To credit or reverse a Client Invoice, find your Invoice under the existing tab in Client Invoice and select the Invoice by clicking in the box to the left of the Invoice, and under Actions select Credit. In the new window select the fiscal month to the post the credit in and select the date for the credit. Enter a transaction description for the credit and click on Save. You'll see the credit listed in the Existing Invoice tab. Once you have made your changes in the Project then you can create a new Invoice to reflect those changes.
To adjust a Client Invoice, go to Accounting in the navigation bar to the left and select Client Invoices. Click on the Existing Tab and search or find the Invoice you want to adjust. Tag the Invoice and under Actions, select Adjust.
On the Add Invoice Adjustment window, enter the information for the adjustment.
Fiscal Month: The Fiscal Month into which the Invoice Adjustment will be reflected
Date: This is the date of the Adjustment which defaults to the current system date
Account: This field must contain the General Ledger Account Number that is used to record this Adjustment. The G/L Accounts should not be the Accounts Receivable Account as Design Manager will automatically adjust the Accounts Receivable Account. Rather, enter the Account Number of the Account that will be the offset to the Accounts Receivable Account. For example, if you are writing off an Invoice you might use a Write Off Expense Account. If you need to enter an G/L Account for this, click here to learn how to do that
Transaction Description: You may optionally add a description of the Adjustment in this field for future reference
Subtotal: The Invoice Amount less the Deposit Amount
Prior Payment/Adjustments: This field shows any Payments or Adjustments previously recorded on the Invoice
Balance Due: The current total balance due on the Invoice prior to any new Adjustments
Adjustment Amount: Enter the amount by which you wish to adjust the Invoice. Use a minus (-) sign to indicate a negative amount and reduce the adjusted balance
Adjusted Balance Due: This is the new total amount due for the Invoice after this Adjustment is accepted
After entering and reviewing the information, click the OK button to record the Adjustment which will then display the Adjustment on the Invoice information and on the Invoice document or PDF
To remove an invalid Invoice Adjustment, click on the Invoice No. In the Invoice preview window, select the Adjustment and click on Delete. Upon doing so you will be asked, "Are you sure that you want to delete this adjustment?" Clicking Delete will deleted the Invoice Adjustment and affect the Balance Due of the Invoice appropriately. Selecting Close will take no effect.
Accounting: The Accounts Receivable Account is always affected upon creating an Invoice Adjustment with the Account selected in the G/L Account field being the other Account affected. Upon reducing a positive Balance Due with a negative Invoice Adjustment, the Accounts Receivable Account will be reduced or credited and the G/L Account will be increased or debited.