How do I process a payment against an existing credit or pre-payment?

The purpose of this article is to describe how to process a payment on an invoice using an existing credit or pre-payment amount on a client’s account.

Prerequisites

Client must have an open credit on their account. This is shown as a green value in their client file. e.g.

If you wish to first create a credit or down payment amount, you can see how to do that in this article:  How do I process a prepayment (credit value)?

After products have been added to the patient file and the invoice has been created – you are then ready to take a payment on that invoice. Below are 4 scenarios you might encounter.

  1. If the invoice amount is less than the credit amount and the customer requires a refund for the remainder of their credit, select the payment type for the refund.
  2. If the customer does not want a refund but wishes to leave the credit amount open, then just use cash as the payment type.
  3. If the invoice amount is more than the credit amount, use the payment type that the customer will be paying the balance with (if they are paying it on the day you are closing the invoice).
  4. If the customer is not paying the balance amount in the current transaction, then choose cash as the payment type to book off the available credit amount, which will leave an outstanding balance for later on.

Scenario 1: Invoice amount is less than the credit amount

  1. Starting with the new invoice you are creating for products added:

  2. Once the invoice is created, use the payment type cash
  3. On the next screen, the previous invoice containing the credit amount will be available. The invoice(s) that require(s) a payment, will be automatically completed with the amount that is owed. The credit invoice line will not be checked by default; if you want to make the new payment against the credit invoice then check the box of the credit invoice and add the equal value of the sales invoice; in a negative value. This cancels out the current invoice to ‘0.00’ and therefore no actual payment is required.
  4. You can then click on Save, or Save & Print Invoice, etc.
  5. The client will now have a remaining credit on their account which they might want returned to them in cash. To process this, simply go to the client file and click into the original credit invoice line (these invoices are marked in green):
  6. We are now going to add a payment to this invoice to the value of what needs to be refunded. (This can be the whole amount or a partial amount). You should also use the payment type you will be using to actually provide the refund. NOTE: If the refund method is not listed as a payment type, e.g. Bank, then do not book the refund here. For any refund processed through a method that is not an existing payment type, you will need to add that transaction through Financial > Balances > Add New Transaction on the bank bankbook, find the respective sales invoice (credit invoice with negative value), and save the transaction on that invoice or adjust the amount if you are only refunding a partial amount.
  7. In this example we will use cash
    .
  8. Choose the payment type you are refunding with.
    NOTE: if you are planning on doing a bank transfer to the client and this payment type is not available, then simply use Cash. You will then need to transfer the same value from your bank ledger to your cash ledger.
  9. The default amount is added automatically. It is the amount that is currently open. You can leave it as such or change it to another amount that you will be providing back as the refund.
  10. Click Save. If you closed this credit invoice with the total open amount, then the invoice will close and you can provide the client the refund. If you are giving a partial refund, the remaining credit will be available in green on their account until it’s used up.

Scenario 2: Leave the credit amount open

  1. Starting with the new invoice you are creating for products added:

  2. Once the invoice is created, use the payment type: Cash

  3. On the next screen, the previous invoice containing the credit amount will be available. The invoice(s) that require(s) a payment, will be automatically completed with the amount that is owed. The credit invoice line will not be checked by default; if you want to make the new payment against the credit invoice then check the box of the credit invoice and add the equal value of the sales invoice; in a negative value. This cancels out the current invoice to ‘0.00’ and therefore no actual payment is required.
  4. You can then click on Save, or Save & Print Invoice, etc.
  5. That’s it, you’re done. The outstanding credit will remain available on their account until it’s used up!

Scenario 3: Invoice amount is more than the credit amount

  1. Starting with the new invoice you are creating for products added:

  2. Select the payment type the client will be using to pay off the remainder of what is owed, (you can always change the payment type in the next screen).
  3. Once you have selected the payment type, you will be shown all open invoices for that client including the credit invoice. Make sure you tick the checkbox of the credit amount to include that in booking off this invoice. In the example below, we see that the new invoice value is £446.69 and the credit amount is £200.00, therefore the client owes a remainder £246.69.
  4. When you click on Save, the invoice will close, as the client now hands over the remaining amount in cash (or card, depending on what you selected as a payment type)

Scenario 4: Not paying the balance amount

  1. Starting with the new invoice you are creating for products added:

  2. Select Cash as the payment type, as you will simply be booking off the remainder credit.
  3. You will now see all open invoices for that customer including the credit invoice. Make sure you tick the checkbox of the credit amount invoice to include that in booking off this invoice.
  4. Then in the invoice line of the new invoice where money is owed, you will need to change that amount to the amount available on credit. In the example below, we see that the new invoice value total is £446.69 and the credit amount available is £200.00, therefore the client could owe £246.69 to pay another day. This can be processed by changing the amount of the payment made on the new invoice, to the amount that’s available in the credit invoice. The credit invoice will be a deduction (-) of its total available amount and the same value gets added to the new invoice. You have to manually change this. e.g.

  5. That’s it, you’re done.

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