Tax Administration Support Document
How to: Credits
Table of Contents
Most accounts show a credit because of an overpayment. Making adjustments to an amount billed or abatements can also result in a credit. Credits can also be moved about years and/or accounts.
There are several ways to apply a credit.
- You can apply the credit to a future payment on the same account.
- A credit can be applied to the same account, different year.
- The credit can be applied to another parcel.
- If it is a small credit, it can be eliminated.
- A credit refund can be given by issuing a check.
It is important to remember that after a credit is created, it has to be processed through one of the options listed above.
Before you make any adjustments, you should create a restore point through "H. Restore Points."
You should also print an "A. Available Credits" report from the "R. Reports Menu." This report displays the Amounts due on a Parcel, credits available to be applied on that Parcel, and the total credits for all Tax Years.
To Apply a Credit in Cash Receipts
- Go to "1. Cash Receipts" off the Main Menu.
- Go to a Parcel that has a credit. Note the amount under "Avail Credit."
- Enter "0.00" in the "Amount" field. This will automatically place the full amount of the credit into the "Credit to Apply" field.
You may apply part of the credit to this Parcel, and part to another Parcel. This will be discussed later in this document. To do so "Cancel" out of this screen, and refer to "To Apply Credits to the same or other Accounts and Years" section below.
- The "Deposit" number field can not be left blank. You may accept the default number. The credits being applied will not appear on the deposit slip when it is printed.
- Click "OK" to apply the credit.
- When you return to the Main Menu, select "2. Post Cash Receipts." This will finish the transaction. This credit will not affect your Cash Receipts deposit, but you need to post the deposit in order to complete the application of this credit.
To Apply Credits to the same or other Accounts and Years
This explains how to break up a credit amount and apply it to many different Parcels/years.
- Go to "3. Adjusting Entries" off the Main Menu.
- Go to "4. Move Credits about Accounts/Years."
- Usually you will choose to move a credit about "Individual" Parcels.
- Select the Parcel that has the credit you wish to move.
- Select the Parcel that you wish to move the credit to.
- Enter the amount of the credit that you wish to move.
- Enter a reason for moving the credit.
- Click "Perform Adjustment" to move the credit as specified.
- Now refer to the "To Apply a Credit in Cash Receipts" section above to apply this credit to the Parcel.
OverpaymentsIf a Taxpayer overpays the amount due then a credit will be created. It is possible to apply that credit to the same Parcel for another year if the Parcel owes taxes within another Tax Year. When there is an Overpayment the system will ask if you want to apply the leftover sum to another "T"ax Year, or as a "C"redit.
- Enter "T" for Tax Year.
If you create a "C" credit, then you will need to follow the steps outlined in the "To Apply a Credit in Cash Receipts" section above.
- Now you will need to enter which Tax Year to apply the Overpayment to.
- When you click "Continue" the Parcel for the Tax Year you selected will appear.
- The "Amount" and "Principal" fields will be equal to the amount of the Overpayment.
- Click "OK" to apply the amount to this Tax Year.
- When you return to the Main Menu, select "2. Post Cash Receipts." This will finish the transaction. When posting this deposit you will see both Parcels listed separately and the amount that was applied to each Parcel.