Creating an Invoice - For a Credit

Overview

Use this job aid to create a credit invoice. If an item is being returned, you create the invoice with a negative quantity for that item. Any invoice that has a negative dollar amount will generate a credit memo if it is not returned as cash to the customer. If the negative quantity line item is included in an invoice with positive line items, that negative dollar amount will be subtracted from the total invoice; if the price of the returned item exceeds the positive line item total, the system will generate a credit memo. In V9, you can apply the credit memo at the end of the invoicing process if desired by answering in the positive to the apply credit memo prompt.

Note: To view more detailed information about buttons and features not covered in this job aid, refer to the Creating an Invoice - Charge on Account topic link below.

To create a credit invoice:

From the Toolbar, click INV for Inventory.
From the Inventory menu, select Invoices.
From the Invoices menu, select Invoice Entry.
In the Location Code box, click Lookup or type * and press Enter, and then select the location code where you want to maintain the invoice, or type the location code where you want to maintain the invoice. It is important that the same location code is used as was on the original invoice if there are multiple locations.
In the Ship To Name Id box, click Lookup or type * and press Enter, and then select the customer ordering the merchandise from your company, or type the customer ordering the merchandise from your company.
In the Pickup/Delivery box, type P for pickup or D for delivery. It is important that when doing a credit invoice that the same Pickup/Delivery box code is used as that on the original invoice. This way the taxes associated with the return will match those associated with the original sale. An entry P will apply state/county taxes from pickup location. An entry of D will apply the state/county taxes associated with the customer Name ID.
Review and edit any of the Price Level/Schedule, Invoice Terms, Invoice Type, State/County, Invoice Date, Ship date, Ledger Date.
Click OK.
In the Item Number box, click Lookup or type * and press Enter, and then select the item number, or type the item number and click OK. Each inventory item on an order is referred to as a "line item".
In the Blend Number, click Lookup or type * and press Enter, and select the blend number or leave blank.
In the Barcode box, type * and press Enter and choose number.
Click OK.
In the Quantity box, type the quantity to be returned of that item using a negative number.
In the UOM box, click Lookup or type * and press Enter, and then select the unit of measure, or type the unit of measure. The selected unit of measure must share a common unit of measure with the sales unit of measure.
In the Price and Per GAL box, if no price defaults for the item, type the selling price per unit of measure.
In the Discount % box, enter a percent or leave blank
In the Activity Loc box, the current location defaults, or you can click Lookup or type * and press Enter, and then select the location code, or type the location code that will record the line item activity. The ledger account assigned to the CS system account code for cost of goods sold in SJI is affected at the location identified by the activity location code
In the Other Reference box, type * and press enter.
In the Scale Ticket# box, click Lookup or type * and press Enter, then select the number.
Click OK.
After entering all line items for the invoice clear the Item Number box of all characters and click OK to continue.
There two options for completing the return: a cash return or a return on account with steps below. A return on account will create a credit memo that will have to be applied either at the end of entering the credit invoice, or at a later date.

Option 1: A Cash Return

23. Click New Payment.

24. In the Bank Code box, check to make sure the deposit will go to the correct Bank. Typically, new payments go to the Cash on Hand Drawer bank code. If a change needs to be made, click Lookup and select another bank.

25. A deposit number is defaulted into the Deposit Number box

26. Click OK.

27. In the Receipt Number Box, a number will automatically be assigned, or you can leave blank to use the next control number. Click OK.

28. In the Amount Tendered box, a negative amount will display equal to the amount of the credit.

29. In the Check Number box, type the check number for future reference.

30. In the Remarks box, type any necessary remarks about the credit invoice.

31. Click OK.

32. Click Continue.

33. In the Invoice Number box, the defaulted invoice number appears. You may type over this invoice number and enter a new one as long as it does not repeat an invoice number that was previously used in the system. Blank out the invoice number box if you want to use the next control number. Control numbers are sometimes used for manual invoices in AR/AP, and the system generated invoice number is used with item invoices.

34. Click OK.

35. In the Due Date box, select or type the due date for payment. With a credit invoice this will be the current date.

36. User Field #1 and #2 are miscellaneous boxes, the use of which is determined by your particular setup.

37. In the Description box, the default description of the item displays, if the description is not correct, type a new description.

38. In the Xref Document box, type a cross-reference document number, or use the Lookup to locate the document number you want to associate with the credit invoice. This is typically used when issuing a credit for a specific invoice and that invoice needs to be referenced to the credit invoice being created.

39. In the remaining fields like Name Id Type, Salesperson, Zip Code, use the Lookup or * to enter any further information.

40. You now have two choices for continuing the invoice, which are described in the next two steps. Choice #1,Click OK, to continue to the miscellaneous reporting fields. In these 10 boxes you can enter information such as Agent/Broker, Farm, Shipper Name ID, etc. for use in reporting additional details. After entering the miscellaneous reporting information, Click OK, to proceed to the comments/remarks windows. Two windows containing eighteen boxes of remarks are displayed. Type any pertinent information in the desired box. These input boxes reflect the descriptive titles assigned in Setup Information. The values in the any of these remark boxes can be carried forward to a delivery ticket and/or invoice if the descriptive titles match. To change this amount, type over the current value. Remarks: With the Forms Design module, the remark boxes can be tailored to the needs of the individual site. For example: the first screen of remarks may be reserved for the vendor's copy of the order and the second screen of remarks could be printed on an in-house release form.

41. Choice #2, Click Save/Print, if the invoice is complete and you want to proceed to printing.

42. Select an Invoice Form.

43. In the Shipping and Billing Name and Address boxes, verify the information. If the information is not correct, type new information.

44. In the Message Line #1 - #4 boxes, the standard messages display, if the information is not correct, type a new message to print on the invoice form. NOTE: A maximum of four standard message lines can be defaulted on each invoice form. The same messages are output on all invoices forms. Overridden message lines appear on all succeeding invoices until the user escapes to, or returns to, the Invoices Menu. The standard message lines are not permanently changed by overriding them on this window. To make the changes permanent, the system manager should change the default message lines in Setup Information.

45. Click OK or Remarks to add any additional information.

46. In the Printer box, type the number associated to the place you want your report to print.

47. In the Copies box, type the number of copies of the report you want to print.

48. In the Pages From and To boxes, type the page number range you want to print the report for. Leave the boxes blank to print all pages.

49. Click OK.

Option 2: A return on account.

23. Click Continue.

24. In the Invoice Number box, the defaulted invoice number appears. You may type over this invoice number and enter a new one as long as it does not repeat an invoice number that was previously used in the system. Blank out the invoice number box if you want to use the next control number. Control numbers are sometimes used for manual invoices in AR/AP, and the system generated invoice number is used with item invoices.

25. Click OK.

26. In the Due Date box, select or type the due date for payment. With a credit invoice this will be the current date.

27. In the Description box, the default description of the item displays, if the description is not correct, type a new description.

28. In the Xref Document box, type a cross-reference document number, or use the Lookup to locate the document number you want to associate with the credit invoice. This is typically used when issuing a credit for a specific invoice and that invoice needs to be referenced to the credit invoice being created.

29. User Field #1 and #2 are miscellaneous boxes, the use of which is determined by your particular setup.

30. You now have two choices for continuing the invoice, which are described in the next two steps:

31. Choice #1, to continue to the miscellaneous reporting fields. In these additional boxes you can enter information such as Agent/Broker, Farm, Shipper Name ID, etc. for use in reporting additional details. After entering the miscellaneous reporting information, Click OK, to proceed to the comments/remarks windows. Two windows containing eighteen boxes of remarks are displayed. Type any pertinent information in the desired box. These input boxes reflect the descriptive titles assigned in Setup Information. The values in the any of these remark boxes can be carried forward to a delivery ticket and/or invoice if the descriptive titles match. To change this amount, type over the current value. Remarks: With the Forms Design module, the remark boxes can be tailored to the needs of the individual site. For example: the first screen of remarks may be reserved for the vendor's copy of the order and the second screen of remarks could be printed on an in-house release form.

32. Choice #2, Click Save/Print, if the invoice is complete and you want to proceed to printing.

33. Select an invoice form.

34. In the Shipping and Billing Name and Address boxes, verify the information. If the information is not correct, type new information.

35. In the Message Line #1 - #4 boxes, the standard messages display, if the information is not correct, type a new message to print on the invoice form. Note: A maximum of four standard message lines can be defaulted on each invoice form. The same messages are output on all invoices forms. Overridden message lines appear on all succeeding invoices until the user escapes to, or returns to, the Invoices Menu. The standard message lines are not permanently changed by overriding them on this window. To make the changes permanent, the system manager should change the default message lines in Setup Information.

36. Click OK or Remarks to add any additional information.

37. In the Printer box, type the number associated to the place you want your report to print.

38. In the Copies box, type the number of copies of the report you want to print.

39. In the Pages From and To boxes, type the page number range you want to print the report for. Leave the boxes blank to print all pages.

40. Click OK.

42. Press Esc. and a prompt appears.

43. To apply the credit memo, answer Yes to the Do You Want To Apply This Credit Memo? prompt.

44. In the Apply Option box, type a 1 to apply the amount to selected invoices.

45. Click Select.

46. A search filter appears. Enter any values in the boxes that will help locate the invoice(s) to which you want to apply the credit memo. To pull all unpaid invoices, do not type any search criteria into the boxes.

47. Click OK.

48. Highlight the invoice you want to apply the credit memo to and Click Select.

49. In the Amount to Apply box, type the amount of the credit that you want applied to the selected invoice.

50. Click OK.

51. Repeat steps 44 and 45 until done.

52. A prompt will appear to indicate the number of invoices applied to by this credit memo.

53. Click Yes.

54. The system will return you to the first invoice entry window.

Learn more about Invoices feature: