Creating a Credit Memo

This article explains how to create a credit memo and apply the credit toward an open invoice in HawkSoft. An agency can create a credit memo for several reasons, including waiving balances, endorsing a policy that may include refunding unearned retained commissions.

Credit memos can be transferred to QuickBooks^® from the Review Trust Accounting Report during the End of Period process. Once the credit memo is sent to QuickBooks, the customer's balance in QuickBooks will reflect the credit.

To create a credit memo

Retrieve a client, and then select the policy you are creating the credit memo for.
Click Action, and then select one item in each of the first three lists to describe what prompted this transaction.
Select Trust Accounting, and then Create Credit Memo.

The Credit Memo dialog opens.
Confirm the Date and adjust, if needed.
Leave the Item Number field set to the default TBA.

HawkSoft auto-fills the item number when you complete the credit memo.
Optional: Select agent initials from the Agent drop-down list.

HawkSoft populates the Agent field with the initials listed as Agent 1 from the Policy information screen for the selected policy. When no initials are listed on the policy, the Agent field on the invoice is left blank.
Select one of the following from the Item drop-down list:
- Balance Waived – When exported, this selection credits the customer balance in QuickBooks from the Transfer: Balances Waived account.
- Carrier Name – Select the carrier name when crediting Company Payable Invoices.
  
  This creates a credit listed on the Unpaid Company Payable Report for that carrier, and an entry on the Trust Accounting Report.
  
  When the Trust transaction is exported to QuickBooks, the customer balance is credited to the account set up for the carrier in QuickBooks.
  
  See Selecting Company Payables to Pay for more information.
  
  You can also type in an Invoice Item name. As you type in the field, HawkSoft will filter the drop-down selection, allowing you to select any matching pre-defined Invoice Items.
  
  This type-along filtering is also available when entering line item Descriptions and split-detail Descriptions.
Verify the Policy information.

The policy selection defaults from the policy you selected prior to selecting your Action items.
Type in a Description, or select one from the drop-down list.
Enter the total amount credited in the Amount field.

When entering unearned commission, enter the value of the refund for the Amount as a positive value, then enter the refunded commission into the Retained field as a positive value.
Conditional: If the credited amount included retained commission, type the retained commission amount into in the Retained field.

If the selected Item is Balance Waived, then the Retained field should be blank.

OR

Click the Calculator button to launch the Retained Commission Calculator dialog.
1. Verify the Commissionable Premium is correct.
  
  Commissionable premium defaults to the Amount.
2. Enter the Commission %.
  
  HawkSoft calculates the Retained amount automatically.
  
  OR
  
  Enter the Retained amount.
  
  HawkSoft calculates the Commission % automatically.
3. Click Save to save the retained amount and return to the invoice.
  
  If the Amount changes after calculating the retained commission, HawkSoft will update the Commission % in the calculator as needed. Retained will not be changed.
  
  You can re-calculate the retained commission by clicking the Calculator button to re-open the Retained Commission Calculator.
Optional: Enter a message in the Printed Comment field.

Comments appear on the printed credit memo and are seen by the customer.

You can click the down arrow in the Printed Comment field and select a pre-defined printed comment created by your agency administrator.
Optional: Enter an additional description in the Memo field.

Information in the Memo field provides a description for this item on the Invoicing tab in the client. Messages entered into the Memo field are for internal use only and are not seen by the client.
Optional: Check the Do NOT Transfer to QuickBooks box to keep this transaction from appearing in the "to be exported" reports during the End of Day process.

For example, you might check this box when you enter Opening Balances, or during the Close of Month process when you have changed a balance in QuickBooks and need to match that balance in HawkSoft.

Do not select this check box unless directed by your bookkeeper or accountant.
Optional: If you want to print the credit memo after creating it, check the Print box.

When checked, the credit memo opens as a PDF in a new window, with the print dialog already opened. Confirm the correct printer and print settings, then click "Print".
Optional: If you want to email the credit memo after creating it, check the Email box.

An "Attachments Queued for Email" pane will then appear on the Action Menu, listing the transaction(s) to send. From there, click Send Now to draft the email immediately, Cancel Email to cancel it, or continue working in the Action Menu — HawkSoft will open the email dialog when you click Finish.
Click Save Credit Memo to complete the credit memo.
If your agency creates and tracks invoices, the Apply Credit To Invoices dialog opens with a list of any open (unpaid) invoices.
1. Optional: Select an open invoice to apply the credit to by checking the box to the left of the invoice and input the amount of credit you wish to apply in the apply amount on the right. Leave all unchecked and select Skip Credit Application if the credit memo will not be applied to any of the invoices listed.
2. Click Apply.
The Create Credit Memo Saved dialog opens.
Click Close Window.

The Action menu opens.
Click Finish to close the Action menu.

The Finalize Log dialog opens.
Add log comments and create a Task as needed, and then click Save Log.

Click the Invoicing tab on the Client/Policy detail bar to view all invoices and credit memos for that client.