It may sometimes be necessary to issue a credit to an owner, which will reduce the client’s account balance due for payment. Owner credits usually relate to refunds and discounts given or billing errors. Owner credits are entered to Ardex through Finance and then Adjustments. In the “Create a new adjustment” options select “Owner CR”.
In the Adjustments screen you will need to enter the following information:
In this example G Friend is being credited $240 inc GST as a refund of Farrier charges in error to his horse All In Vain on 16 May. The credit is dated 17 May and is applied against the correct invoice.
By clicking “Add” the owner credit will be entered and applied against the owner invoice selected. The accounts receivable balance for this owner will be reduced by the amount of the owner credit. Remember to take care that GST is entered correctly on owner credits - in most cases the GST amount will be the same as the amount on the original owner invoice being credited.
Related to owner credits, if an owner makes an account overpayment in error and you need to enter the bank transaction for your bank reconciliation to succeed, but cannot apply the payment amount against unpaid owner invoices on record, the Debtors Loan Account provides an excellent method to record the payment transaction and keep a record in Ardex that the owner has overpaid.
It is also possible to write off / credit outstanding invoices for an owner or horse using the Credits and Transfers function in Finance. This automatically allocates the credit against the same income account used on the original transaction, and also duplicates GST allocation from the original transaction. This function is simpler to use than the Adjustments function, but provides less opportunity for transaction customisation.
Select the owner name, date, enter the amount of the credit and reason, and use the Applied column to apply the credit amount to outstanding owner invoices. Note that this function will not allow a credit to be applied to the debtors loan account, use the Adjustments function in this case.