Customer credit is money that you owe to the customer, and which can be used against future payments.
Customer credits in DEAR Inventory can arise in the following ways:
- Credit notes issued as store credit rather than cash payment
NOTE: Customers in POS can make deposits on layby sales or receive store credit, however, these will only apply to POS sales and will not be able to be used against sale invoices processed through the DEAR web portal. See Returning a Sale - POS for more information.
- Set up Accounts (necessary).
- Set up Bank Accounts (necessary).
- Set up Customers (recommended).
- Familiarity with Processing a Purchase (necessary).
Table of Contents
- Set up an account for Customer Credits
- Add a Customer Credit
- View Customer Credit
- Use Customer Credit
Set up an account for Customer Credits
Before using Customer Credits, you will need an account to hold them. It must be an asset account and (for Xero and DEAR standalone users) have the ability to accept payments. Xero and QBO users can create accounts through their accounting system, DEAR standalone users can go to Settings -> Reference Books -> Financials -> Chart of Accounts. For more information about account settings and creating accounts, see Accounts and Chart of Accounts.
Once you have prepared your Supplier Deposit account, go to Settings -> Reference Books -> Financials -> Account Mapping to make sure it is correctly mapped. Save your changes to finish.
Add Customer Credit
Once you have an account to hold your customer credits, you can start adding customer credits for your different customers. There are three methods of adding a supplier deposit: through a purchase order, through a credit note/refund, and through the Receive Money function. Customers in POS can make deposits on layby sales or receive store credit, however, these will only apply to POS sales and will not be able to be used against sale invoices processed through the DEAR web portal. See Returning a Sale - POS for more information.
Through a Sales Quote
Customer credit can be allocated to a customer through a sales quote, for example, if a prepayment or deposit has been given for an item or service.
To add customer credit through a sale quote:
- Create a new sale by navigating to Sale -> New Sale or choose an existing sale quote.
- Make sure the Skip Quote box is NOT checked.
- Fill in the quote details as required.
- Authorise the quote.
- Click +Customer Credit to add the credit details. This step will only become visible once the sale quote has been saved or authorised.
- The deposit account field will be auto-filled by the account set up for customer credits. Fill in the rest of the credit details and click Create.
- The Customer Credit will be added to the sale quote, ready to be used against the invoice.
Through a Credit Note
The Credit Note function can be used to add a customer credit If the customer has been overcharged, wrongly charged, and/or needs to be refunded.
To add customer credit through a credit note:
- Navigate to Sale -> Sales and choose a sale to apply the credit note to. It must be a sale with an authorised invoice.
- Go to the Credit Note tab and fill it out. See Credit Notes for more details on the credit note function and fields.
- Authorise the credit note. You will also be prompted to authorise a Restock action if applicable.
- Scroll to the Payment section. Click +Return to Customer Credit to add the credit note value to their account. You will be prompted to add a reference and the amount. When you make a sale to this customer in the future, they will be able to use their customer credit as a payment method.
Through Receive Money
Creating customer credits through the Receive Money feature is useful when a customer has made a prepayment which does not relate to any particular sale, but still needs to be accounted for.
To add customer credit through Receive Money:
- Navigate to Financials -> Receive Money.
- Select the bank account you are receiving this deposit into, the Customer you are receiving the money from and the Date.
- In the product drop-down you might want to consider setting up a generic service item called Deposits to receive these payments.
- Enter the Amount deposited and change the account to Customer Credits.
- Click Complete.
View Customer Credit
View all the customer credits currently on record for your different customers.
To view customer credit:
- Navigate to Sale -> Customer Credits.
- The list of customer credits for each customer will be displayed. The transaction the credit is associated with can be accessed by clicking the link in green.
Use Customer Credit
Accumulated Customer Credit can be used to offset payments owed. It can be applied to the sale at the Invoice stage.
To use customer credit on an invoice:
- Choose an authorised invoice from Sale -> Sales.
- Click +Use Customer Credit.
- Select the relevant credit from the Existing Credits list.
- Click Add & Save. The customer credit will be added to the payments section and discounted from the total balance due.