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Tasks

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Entering a Credit Memo

A credit memo is used to credit your organization for a previously entered invoice. Common reasons why a credit memo is issued are the wrong price was charged on the original invoice, the quantity was incorrect on the original invoice, the wrong material was shipped, or the material was sub-standard and was returned.

A credit memo works in the same way as an invoice, except that normally you can enter lines with negative amounts.

Both quantity and price adjustment credits are supported in APM. A quantity credit is entered when your organization is receiving a credit for some or all of the quantity previously invoiced. A price adjustment is used when the credit is adjusting the price at which the material was originally invoiced.

When creating a credit memo for items that have been returned to the supplier, you must first have created a return receipt transaction to record the quantity that was returned. Then you can create a credit memo line matched to the return transaction.

When a supplier issues a credit for materials that are not being returned, you can enter a price adjustment line to the credit memo. For example, you could use this process when your organization was overcharged for materials delivered on the original invoice.

A new credit memo can be created as part of an invoice batch or on its own. This topic explains how to create a new credit memo that is not part of a batch. To enter invoice batches, see Creating an Invoice Entry Batch.

Note: If you are creating a credit memo for material that has been returned, you must first record the return with a return receipt. For more information, see Returning Materials to a Supplier.

To Create a New Credit Memo

1.	Select the site’s Invoicing view and Invoices tabs.

2.	Click the New list, and then Credit Memo. The New Invoice dialog appears.

3.	To create a credit memo that is based on a purchase order, enter the purchase order number or click Browse to select the appropriate purchase order.

If you enter a purchase order in the dialog, the system fills in the supplier name and number and displays Prompt all open liabilities. If necessary, you can clear this option.

4.	If you are creating an invoice that is not based on a purchase order, you can enter the supplier number or click Browse to select the appropriate supplier from the list.

5.	Enter the invoice number:

Setting Name

Description

Invoice Number

The supplier’s invoice number. An invoice number must be provided, and it must be unique by supplier and site. You cannot enter multiple invoices with the same invoice numbers from the same supplier. This helps to ensure the same invoice is not entered twice.

6.	If the credit memo is based on a purchase order, provide the supplier’s packing slip number.

7.	Select the appropriate invoice type:

Setting Name

Description

Invoice Type

Select the type of invoice that you are creating. The invoice type: • Can be used to group and order invoices • Controls whether the invoice is a regular type of invoice or a credit memo • Controls the types of invoice lines that can be added to the invoice • Controls if the invoice requires approval Invoice type is not mandatory. If an invoice type is not selected, the invoice does not require approval.

8.	Fill in any other information, as appropriate. Any information that you do not enter now, you can enter later on the credit memo.

Setting Name

Description

Invoice Amount

The total amount of the invoice in the supplier’s currency. The system compares this amount to the total of all of the invoice lines to determine if the invoice is balanced or not. For credit memos, you must enter a negative amount (for example, -$250). If you do not enter the invoice amount, the system sets this amount to the total value of the created lines.

Invoice Date

The date on the invoice.

Payment Due

The date that payment for the invoice is due. If you selected a payment term, the system fills in the appropriate due date. You can change the prompted date, if necessary.

Invoice Received

The date that the invoice was received. The system automatically fills in today’s date, but you can change the date if necessary.

Voucher Number

If you use voucher numbers to track invoice hard copies, enter the invoice’s voucher number. The system may automatically enter the next available voucher number if this setting is turned on for the site.

9.	When you are finished entering the appropriate information, click OK. The system creates and opens a credit memo. If requested, lines are created for the purchase order lines.

10.	Now that you have created the credit memo, you can add lines or work with the credit memo. For more information, see:

•	Adding Lines to a Credit Memo for Returned Items

•	Adding Price Adjustment Lines to a Credit Memo

•	Adding Unmatched Lines to a Credit Memo

•	Posting a Credit Memo

11.	When you are finished entering information, save the credit memo.