Creating maintenance contract credit memos

Credit memos can be created for maintenance contracts by adjusting the billing schedule of maintenance contracts. You may want to use a credit memo for one of the following reasons:

• If a customer was not pleased with the service after the first year, you may choose to apply a credit amount to the next contract year.
• If you had a preventive maintenance contract for two pieces of equipment and the customer sells one of the pieces of equipment during the contract year, you may need to adjust the amount of the maintenance contract and credit the billing schedule.
• If a posted invoice was incorrect, you may use a credit memo to compensate a customer. Once a billing amount has been posted, it cannot be changed. You may choose to issue a credit to the billing schedule to rectify the error.

1. Choose Cards > Service Management > Service Manager.
2. Select a customer and choose the Contract indicator.
3. Select a contract.
4. In the Maintenance Contract window, decrease the maintenance contract amount by the amount of the credit memo.
5. Choose Save. If you have not posted any billing amounts, you are asked if you wish to adjust the billing schedule. Choose No. If you have posted amounts, you are not asked to adjust the billing schedule.
6. Choose Billing to open the Billing Schedule window.
7. Select the Date field in the scrolling window and choose Add. The new row appears in the scrolling window with the system date by default. You can edit the date.
8. Select Credit Memo from the Document Type drop-down list.
9. Enter the credit amount in the Billing Amount field.
10. Choose OK to save your changes and close the window. If your billing amount does not total the contract amount, you receive an error message.

You can edit the Date and Billing Amount fields. Only billing items that have not been posted can be edited.
When previewing maintenance contract invoices, the credit memo lists as a negative number on the Created Maintenance Invoices report. The document number for the credit memo is taken from Microsoft Dynamics GP Receivable Management setup.
The invoice that is created from the credit memo has a negative amount due.
The credit memo is saved to a Microsoft Dynamics GP Receivables batch called MAINTENANCE XX, where XX is the current fiscal period number. You must post the batch in Microsoft Dynamics GP for the maintenance credit memo to appear in the Microsoft Dynamics GP Receivables Open Transactions file.