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Note: Effective 1/23/17 - Credit Memos may no longer be created.  

See here for more info regarding changes to Accounts Payable.

Overview

The Manage Credit Memo tool allows users to access, manage, create, and delete Vendor credit memos.  Credit Memos are used to adjust the cost and quantity of inventoried items when credit is issued from the vendor for returns.  Credit Memos are added to Vendor Invoice Batches and are available to apply against invoices for payment once the Vendor Invoice Batch containing the Credit Memo has been posted.

Use Case(s) 

  • Goods received in the Pro Shop were paid for; however, after further review the goods were determined to be faulty, and were returned to the Vendor.  The Vendor issued a Credit Memo for the returned goods, which will be applied to the Vendor’s account, and will offset future amounts owed to the Vendor.

  • Accounts Payable wishes to review outstanding Credit Memos in preparation for offsetting future payments to Vendors.


Content

Navigation 

To access the Manage Vendor Invoices Screen: 

  1. Click on Accounts Payable

  2. Then, click Manage Credit Memos

       


Entering Credit Memos 

To enter a Credit Memo:

 Click the New icon on the Manage Credit Memo Screen.

 

The Lookup Value screen will appear to assist with locating a specific batch, amount, or other filter as specified, or to begin a new batch. 

Click the Quick Add button, or to add a credit memo to an existing batch, select the batch from the list by double-clicking on it.  


The Credit Memo entry screen will load.

 

Select the Vendor.  Start typing the name of the vendor or click on the Lookup icon to launch the Lookup screen. 

Once Vendor appears in the list, select the Vendor to populate the Vendor field by double-clicking on it.


Once Vendor is populated, complete Credit Memo screen by selecting the Contact (if applicable), populating the Credit Memo Number (usually provided by Vendor), and entering the Credit Memo Date. 


Then, create a line on the Credit Memo to apply the Credit Memo appropriately.   

Select Item, when an inventoriable item has been returned to a Vendor.   

Use a Comment line to enter additional verbiage as desired.   

Use Account when receiving credit for a non-inventoriable good or service. 


For Item type, select the Item returned to Vendor in the Name field.   


For Account type, populate the Name field with the G/L account to apply the Credit Memo amount.  

More than one account line may be added if necessary, and amount on each line may be adjusted accordingly. 

 

Next, complete the remaining fields of the Credit Memo. 

For Item type, Description field will auto-populate with Item Description.   

Enter Quantity and Amount fields as positive.  Total field will calculate.   

Memo and Reference fields may be completed if desired. 

 

For Account type, Description will auto-populate with name of G/L account selected.   

Leave Quantity field at 1, and enter total amount to credit in the Amount field.  Total will populate. 


For Comment line(s), enter Comment in the Description field. 


When complete, click Save and Close. 


Posting Credit Memo Batch 

Just like Invoices, Credit Memo batches (or the batch containing the credit memo) may be posted via the Approve Vendor Invoice Batches tool.  

Click Accounts Payable, and then select Approve Vendor Invoice Batches. 


Select Batch to post by highlighting the batch, and clicking edit, or simply double-click on the batch. 


Batch Report will launch.  Review Batch Report, and when appropriate, Post Batch.

 

Once the Invoice batch is posted, the Credit Memo will display in the Pay bills screen to be applied to Invoices for payment. 

To access, click Accounts Payable and then click Pay Bills. 


Credit Memos will display as negative amounts in this screen.


Editing Credit Memos

Credit Memos cannot be changed once they have been saved.  Corrections would be made using a Vendor Invoice and an Inventory Adjustment.  

They may, however, be deleted and re-entered prior to posting. 


Deleting Credit Memos 

To delete a Credit Memo prior to posting, click on Accounts PayableManage Credit Memos. 


Next, highlight the Credit Memo, and click Delete.


To delete an entire batch containing the Credit Memo, click Accounts Payable, and then click Approve Vendor Invoice Batches. 


Highlight the desired batch to delete, and then click Delete.

 


Confirm deletion by clicking Yes.


Acknowledge successful operation by clicking OK.



Close Window.


Best Practices

It is recommended that all non-inventoriable credit memos be entered as negative invoices through the Enter Vendor Invoices screen.  


FAQs

Q. Do I enter a Credit Memo as a Negative or a Positive Amount?

A. Enter all credit memos using positive amounts and quantities.  The system will adjust it appropriately.


Q. How do I edit a Credit Memo?

A. Credit Memos cannot be changed once they have been saved.  Corrections would be made using a Vendor Invoice and an Inventory Adjustment.  They may, however, be deleted, and re-entered prior to posting if desired. 

 

Downloadable Guide

Manage Credit Memos - Guide