This guide covers how to create a credit when no payment has been received, such as for trades or promotions. For example, you might trade $100 of Massage services for $100 of website development or issue a free treatment as a prize. In these cases, you can record the value as a Credit Memo to cover the appointment without affecting cash flow or income reports.
Credit Memos differ from account credits created through actual payments. To create a credit from a patient’s payment, see our guide: Creating a Patient Credit.
To create a Credit Memo, go to the patient’s Profile > Billing > Credit Memo tab, and select New Credit Memo.
From there, you can enter the date, a short description for the credit memo and the amount.
Applying a Credit Memo to an Invoice
Once the credit memo is created, you can apply it through your normal payment workflow. On the second Receive Payment screen, make sure to remove any pre-populated payment methods by clicking the X beside them.
Next, click the blue Add Payment Method text, and in the pop-up window, select Account Credit.
FAQ
⭐️Will Credit Memos appear on my reports?
Great question! Since a patient payment has not been received, a Credit Memo will not appear on the Transactions Report or the Daily Transactions Report.
Credit Memos will appear on the following reports:
- Billing Summary Report:
- Credit Memos will contribute towards the applied totals for the date range when applied (or unapplied)
- They may also appear under the “Credit” section
Jane tip: The “Credit” area of the Billing Summary report is interested in whether there was a net change in credit for a particular day (or for a filtered date range). If a credit was created, and then used on the same day, no overall net change was experienced, and it will not display on the report.
- Sales Report:
- A Credit Memo will appear on the Sales Report once it has been applied to an invoice
- Compensation Report (Collected Cash version):
- A Credit Memo will appear on the Collected Cash version of the report once it has been applied to an invoice
- It will contribute towards a staff’s compensation for the date the Credit Memo was applied or unapplied from an invoice
Jane tip: Credit Memos don’t affect the Invoiced version of the report because payments aren’t taken into account.
- Applied & Unapplied Payments Report:
- This report will display all applied and unapplied payments that have been applied or unapplied to invoices within a date range (for all payments, including credit memos and gift cards)
- Credit Report:
- If a patient has an unapplied Credit Memo on their account, it will be considered “credit” and show up towards the credit totals on a patient’s account
- Friendly reminder that the Credit Report includes both regular credit and Credit Memos
- Credit Memo Report:
- A list of credit memos will be displayed
- Cash Reconciliation Report:
- Credit Memos will contribute to any unapplied and applied payments, particularly the Credit Used and Credit Added sections
- The report also displays Credit Memos with a balance remaining
⭐️Can a Credit Memo amount be edited?
A person with any permission level can adjust or delete a credit memo from a client’s profile under the Billing > Credit Memos section, as long as it hasn’t been applied to an invoice.
Once applied, only those with Full Access permissions can unapply it from the invoice. If you need to change the amount after it’s been applied, you’ll need to unapply the Credit Memo first, delete it, and then add a new one with the correct amount.
⭐️Can I change the Payment Date on a Credit Memo?
At this time, the Payment Date on a Credit Memo cannot be changed. A Credit Memo technically isn’t a real payment in Jane so the Payment Date is meant to reflect the date it was created.
That being said, the Credit Memo Date and the Applied Date can be changed if needed.
We hope the info about Credit Memos is helpful. If you have questions, or if you want to chat through workflows in Jane, please don’t hesitate to get in touch, we’re always happy to hear from you. 💙