Managing adjustments and Applying Them to Invoices in BuildOps
Managing adjustments in BuildOps can involve applying them to invoices, handling refunds, and navigating integration-specific challenges. This guide provides a comprehensive overview of workflows, troubleshooting steps, and best practices.
Introduction to Adjustments in BuildOps
Adjustments are used to adjust outstanding balances on invoices or account for situations like refunds and discounts. In BuildOps, these credit memos can be applied to invoices or payments, and they often sync with integrations like QuickBooks.
Applying Adjustments to Invoices
Scenario 1: Reopening Closed Adjustments
If an adjustment is in a Closed status and cannot be applied to an invoice, it must be reopened by the Accounting Integration team. To prevent this in future, save the adjustment without finalizing it (i.e., select "Save" instead of "Save and Export") if no invoice has been applied yet. This allows for further edits before finalizing.
Scenario 2: Using Adjustments with QuickBooks Integration
To make sure a credit memo created in Adjustments shows up for application to an invoice while using QuickBooks integration, ensure the Property field on the adjustment is left blank. This field is not required, and leaving it empty allows the adjustment to be located and applied to the desired invoice.
Scenario 3: $0 Payment Workflow
Adjustments cannot be applied to invoices through standard payment workflows. Instead, create a $0 payment and apply the credit memo to the invoice balance as follows:
Create a $0 payment and select the relevant accounts receivable invoice.
Document the adjustment's amount being consumed and applied to the invoice.
Save and post this payment, syncing the adjustment to the invoice as a $0 transaction.
Scenario 4: Steps for Syncing to QuickBooks
To ensure adjustments sync correctly with QuickBooks:
Create an Adjustment Type via Accounting Settings > Adjustment Types, setting the GL Account to Accounts Receivable and the GL Offset Account to a Bank Ledger Account.
Use this Adjustment Type to apply the adjustments as a write-off against the target invoice.
Review to ensure the adjustment reflects on the invoice and syncs appropriately.
Handling Refunds and Adjustments
Scenario 1: Refunds for Fully Paid Invoices
If a customer has already paid an invoice in full and a refund needs to be issued:
Issue the refund without unapplying the payment.
Adjust the invoice by removing returned items, then reapply the payment for the new total.
Use an overpayment adjustment to clear any remaining balance.
Scenario 2: Handling Negative Credit Balances
Invoices with a credit balance (negative value) cannot have payments applied. To address this, include credits or discounts within the same invoice instead of using a separate credit invoice. If necessary, void the credited invoice and reopen the associated job to make adjustments.
Why Don’t Invoices Appear When Trying to Apply Adjustments or Credits?
Sometimes, when attempting to apply adjustments or credits to invoices, users may find that the list of invoices does not appear, or that adjustments cannot be applied as expected. This guide provides explanations of common issues and step-by-step instructions to resolve them effectively.
Common Reasons Why Invoices Might Not Appear
Property Not Selected: - Each invoice is tied to a specific property. If you do not select the property associated with the invoice, it will not show up in the list of available invoices. Make sure to choose the correct property before viewing invoices.
Adjustment Type Errors: - Adjustments created as an "Overpayment" do not allow for invoice selection. To apply an adjustment to an invoice, ensure the adjustment type is set to "Write-Off" or "Refund." If the wrong type has already been created, void it and create a new adjustment with the correct type.
General Information Missing: - Before applying an adjustment, ensure that the Billing Customer and Property fields in the adjustment’s General Information section are completed. Invoices will only appear once these fields are correctly populated.
Troubleshooting Common Issues
Ensure fields like "Property" in adjustments are left blank unless explicitly required.
Do not finalize a adjustments before assigning it to an invoice to prevent it from being moved to a Closed status prematurely.
Utilize the Adjustments module for actions like refunds or write-offs when complex modifications are needed.
Best Practices for Managing Adjustment
Always validate invoice details before finalizing adjustments
Use $0 payment workflows for applying credits, especially when traditional payment mechanisms fail.
Regularly coordinate with the Accounting Integration team to resolve Locked or Closed adjustments