While most members pay their outstanding dues invoices, there are always a few who don't. At some point in time, association staff will decide to drop members who haven't paid their dues.
In Novi AMS, this process is managed using a feature called Non-Renew and Credit.
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What Happens During Renewal?
When a membership renews, two things happen:
A dues invoice is created.
The member's expiration date is moved forward to the end of the next term (yearly, monthly, etc).
What if the member doesn't pay the dues invoice?
When a member hasn’t paid their dues renewal invoice, Non-Renew & Credit is the correct action to effectively reverse the renewal. This process is manual - there’s no automatic drop - and the timing is up to the admin. The action should only be taken after the invoice has a status of Overdue, but admins can choose to wait longer before removing the member’s benefits.
Video Tutorial
Watch Non-Renew & Credit in Action:
What is Non-Renew and Credit?
Commonly referred to by calendar-year associations as their "annual drops."
Non-Renew
This part of the process:
Rolls back the member's expiration date to the previous expiration date, which also results in their status changing to Expired (or removes the date entirely for new members, converting them to Prospects).
Immediately removes benefits from the member (and any inheriting or dependent members, if applicable to the member type).
Credit
The credit portion:
Triggers QuickBooks Online to create a credit memo offsetting the original dues invoice.
Adds a layer of detail and transparency to accounting records by properly reversing recognized revenue, keeping financial reports accurate.
Ensures that your Profit & Loss statement reflects a net zero effect, unless the original invoice and credit were recorded in different periods.
As a best practice, Novi highly suggests not deleting dues invoices in QuickBooks Online. This could alter previous financial reporting. It's best to use the Non-Renew & Credit functionality instead.
Trust us, no one wants to report X dollars for January's income to a board only to revise the number down a few months later!
How To Non-Renew & Credit
Admins can either drop members using a batch action or within a specific member's dues invoice.
Batch Processing
Learn how to process multiple drops at once.
Steps:
Navigate to Accounting > Transactions in the backend.
Click the Filter button, then use the Quick Filter link for Overdue Dues Invoices.
Apply additional filters as needed.
Manually select specific invoices, or select all on the page.
Once the invoices are selected, click the Batch Actions drop-down, then select Non-renew & credit.
Locate the Overdue Dues Filter and (optional) apply additional filters:
Select the Dues Invoices by checking the boxes in the left column:
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When the invoices have been selected for the members who need be dropped, click Batch Action > Non Renew & Credit:
Processing a Single Non-Renew and Credit
To drop a specific member, the Non-Renew & Credit button is available in these places on the backend:
On open dues invoices
On the Details tab of the billed record
To process non-renew on a single dues invoice:
Go to the Transactions list, view the invoice, and click the Non-Renew & Credit button in the pop-up modal.
Then close the modal using the "X" or “Close” button.
To process Non-Renew from the Details tab of a record:
Navigate to the Details tab of the billed record. (This is usually the member's record, but could be their parent/grandparent.)
In the blue area under Membership Information, click the Non-Renew & Credit button.
The "Non-Renew" Transaction Status
For Non-Renew & Credited invoices, QuickBooks Online considers the status of these transactions as Paid. In most cases, a zero-dollar payment is automatically created to link the credit memo with the outstanding invoice.
However, Novi displays these as Non-Renew so you can distinguish them from other statuses.
Non-Renew & Credit is a Novi feature.
QuickBooks Online will still show the invoice as PAID when Non-Renew and Credit is used.
The Non-Renew status is visible in these areas of Novi:
Accounting > Transactions Tab
Member Detail > Accounting Tab
Recent Signups
In Transaction Status Filters
Member Compass > Accounting Tab
Key Notes & Best Practices
Non-Renew status appears in Novi only if the invoice is credited using Novi's Non-Renew & Credit tool.
When invoices are Non-renewed & Credited, a copy of the credited invoice is not automatically sent to the member.
Credits issued directly in QuickBooks Online do not trigger the Non-Renew status in Novi.
This is intentional, as there may be times a credit memo is used, but not as a write-off. Please consult your bookkeeper/accountant for further information on the accounting side of things.
You can only Non-Renew & Credit once per dues invoice.
If a member wants to renew later, leave the old invoice untouched.
Instead, click the Renew button from their Details tab to generate a new invoice.
If batch emailing transactions, and Non-Renewed invoices are selected in the batch, Novi will ask for confirmation before sending the Non-Renewed invoices.
A Note on Seat-Based Dues Invoices
If you're making changes to a member company that has seat-based dues, please refer to the corresponding articles for more detailed information:
Troubleshooting
The Non-Renew & Credit feature is available only for open dues invoices (which includes overdue invoices).
If a dues invoice has been fully or partially paid:
You’ll need to refund their payment manually in QuickBooks Online (if necessary) and adjust the member's expiration date in Novi (to their previous expiration date).
When batch processing, Novi will skip paid and partially paid invoices, and list the ones not processed in the status bar on the Transactions page:
There are possible exceptions if the member types have any optional dues rules that uses the create an offsetting credit memo setting. That setting prevents Non-Renew & Credit of the invoice.
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