Create a Reason Code

Last updated
Save as PDF

Overview

Reason codes provide an explanation of why a credit is being applied to an account. You are prompted for a reason code for the following types of transactions:

Cash Credit
Credit Memo
Rebill
Service Credit
Write Off
Refund
Coupon

Only users who are assigned to a role with Create access to Finance > Reason Codes can create a reason code.

Create a Reason Code

To create a reason code, use the following steps:

Getting Here: Click Finance > Reason Code > New

Enter the name of the code, for example, "Damaged Merchandise".
Select the type of transaction to which this reason code can be applied. Allowable values are:

Cash Credit
Credit Memo
Rebill
Service Credit
Write Off
Refund
Coupon

If you are creating a reason code to be applied to a service credit, you see the following Accounting Options, as shown below:

Reduce revenue when service credit is applied: The amount of the service credit reduces the value of charge lines when it is applied to an invoice (default).
Record liability immediately: The amount of the service credit becomes a liability when it is applied to an invoice, even if it is not yet applied to the account's balance. When you choose this option the following four required fields display. Enter the appropriate general ledger account information for each:
Expense GL Account: Indicates the charge account when the service credit is immediately accounted at issuance.
Unapplied Service Credit GL Account: Indicates the credit account when the service credit is immediately accounted at issuance.
Canceled Service Credit GL Account: Indicates the credit account if the unapplied service credit is canceled.
Expired Service Credit GL Account: Indicates the credit account if the unapplied service credit expires.

In the Reason Code field, enter a numeric code up to four characters long to identify the reason for the credit.
For cash credits or service credits only, if you want to allow CSRs to use this reason code when creating service credits, you can check Enable for CSRs.
For service credits only, if you enable the reason code for CSRs, you see the following options:

Allow time-based restrictions
Allow plan or service scope restrictions

If you check either of these boxes, then, at the time you apply this reason code to an account, you see additional fields to limit how this reason code is applied. See Create a Service Credit for additional information.