There are two types of adjustments: Fee Adjustment and Credit Adjustment. A Fee Adjustment is used to reflect a charge outside of the contract rate that is to be reflected on the account. Examples of Fee Adjustments can include any balance carried over from previous system, a schedule change fee, a late pick up or late payment fee.
A Credit Adjustment reflects an amount that is not going to be paid on the account. Examples include a snow day credit, a vacation credit, prorating a Preschool contract for a later start date, etc.
If a refund is being made and the person will not owe the amount being refunded, a Credit Adjustment usually also needs to be created in order to ensure the system shows they do not owe the amount that was refunded.
The Name/Reason provided when creating the adjustment is reflected as a line item on the account as well as on any invoices that are generated.
For Credit Adjustments Only:
There are two options when adding a Credit Adjustment to an Account: Apply to the Account (future charges) or Apply to Existing Invoice (past charges). The default is to Apply to the Account (future charges). When that option is used, a line item will be displayed on the account with a red Remove icon to allow it to be removed from the account if needed. That adjustment will be picked up by the next invoice that is created.
If the option of Apply to Existing Invoices (Past Charges), the line item in the account showing $0 is created as a placeholder to show that there was a credit added and is going to be reflected on a previous invoice or invoices (in some cases, based on the amount being credited, that credit may be spread out over multiple invoices which is why the placeholder in the account activity shows $0). When you use the setting Apply to Existing Invoices (Past Charges) then remove the invoice that the credit was applied to, the credit will no longer show up on any future invoices that are created. However, that placeholder of $0 needs to stay in place on the account as part of the history. That $0 line item is not intended to not be removed.
To add an Adjustment to a Child Care Account, follow the steps below:
- Point to Child Care.
- Select Accounts.
- Search for and select the desired Account
- Select Show Account
- Select Add Adjustment.
- Complete the Adding Adjustment for...form. If creating a Credit Adjustment, it is preferable to use the option for Apply to the Account (future charges) to be picked up by a future invoice.
- Select Add Adjustment.