Applying a Credit Memo

Overview

Use this job aid to apply a credit memo. A credit memo is an invoice transaction with a negative gross amount. Credit memos typically originate as manual invoices in ACR, as an item invoice for return of goods in Invoice Entry in INV, in ticket entry in POS, and as a settlement in GRN. Credit memos reduce the customer's A/R balance. Credit memos must be applied to an invoice transaction in order to set the transaction status to paid on the credit memo (and possibly on the invoice). If the transaction status code is left unpaid, the positive and negative amount invoices continue to appear as outstanding activity on the customer’s A/R statement. They may also affect the chargeable balance when calculating finance charges and interest credits. And because their status is unpaid, they may not be purged.

To apply a credit memo:

1. From the Toolbar, click ACR for Accounts Receivable.

2. From the Accounts Receivable menu, select Invoices/Credit Memos, and then select Apply Credit Memos.

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3. In the Name Id box, click Lookup or type * and press Enter, and then select the name id you want to apply a credit memo for, or type the name id that you want to apply a credit memo for.

4. In the Date Applied box, type a new apply date if different from the default date.

5. Click OK.

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6. In the Location Code box, click Lookup or type * and press Enter, and then select the location code you want to select credit memos for, or type the location code that you want to select credit memos for, or leave blank for all location codes.

7. The Document Type box, type 1 for item invoice, type 2 for manual invoice, type 3 for finance charge, type 4 for interest credit, 5 for settlement, 7 for budget bill invoice, or leave blank for all document types.

8. In the Invoice Type box, click Lookup or type * and press Enter, and then select the invoice type you want to select credit memos for, or type the invoice type that you want to select credit memos for, or leave blank for all invoice types.

9. In the Invoice Number box, click Lookup or type * and press Enter, and then select the invoice number you want to select credit memos for, or type the invoice number that you want to select credit memos for, or leave blank for all invoice numbers.

10. In the 1st Grn Ticket # and Grn Contract # can reflect a descriptive title set in Setup Information and can be set to required or optional. These user-defined boxes can relate any information. Suggested uses of these boxes include method of shipment, freight terms, approval codes, and quotation number or expiration date, etc. boxes, type user-defined information, or leave blank for all invoice numbers.

11. In the Their Order # represents the customer's internal purchase order number, reference, or control number. The information in this box can be useful when contacting the customer regarding the transaction. box, type the customer's document control number, or leave blank for all invoice numbers.

12. In the Grn Fr Misc Oth and Grn Vehcl# can reflect a descriptive title set in Setup Information and can be set to required or optional. These user-defined boxes can relate any information. boxes, type user-defined information, or leave blank for all invoice numbers.

13. Click OK.

14. Select the credit memo you want to apply.

15. Select Apply Amount To Selected Invoices?

16. In the Location Code box, click Lookup or type * and press Enter, and then select the location code you want to select invoices for, or type the location code that you want to select invoices for, or leave blank for all location codes.

17. The Document Type box, type 1 for item invoice, type 2 for manual invoice, type 3 for finance charge, type 4 for interest credit, 5 for settlement, 7 for budget bill invoice, or leave blank for all document types.

18. In the Invoice Type box, click Lookup or type * and press Enter, and then select the invoice type you want to select invoices for, or type the invoice type that you want to select invoices for, or leave blank for all invoice types.

19. In the Invoice Number box, click Lookup or type * and press Enter, and then select the invoice number you want to select invoices for, or type the invoice number that you want to select invoices for, or leave blank for all invoice numbers.

20. In the Order #1 and Order #2 boxes, type user-defined information, or leave blank for all invoice numbers.

21. In the Their Order # box, type the customer's document control number, or leave blank for all invoice numbers.

22. In the User #1 and User #2 boxes, type user-defined information, or leave blank for all invoice numbers.

23. Click OK.

24. Select the invoice you want to apply the credit memo to.

25. In the Discount Allowed box, the discount amount will display. Change this amount if it is not correct.

26. In the Amount To Apply box, the amount remaining to be applied defaults if the amount remaining is greater than or equal to the balance due. If the balance due is less than the amount remaining, the Amount To Apply box defaults the balance due. A partial application may be made by typing a smaller amount in the Amount To Apply box.

27. Click OK.

28. Click Back.

Learn more about the Invoice and Credit Memos feature: