Accounts Payable - Enter Debit/Credit Memos

Overview

Pgm: VMEMOENT – AP Enter Memo; standard Treeview path: Accounts Payable > Voucher > Enter Debit/Credit Memos

This screen is used to enter credit or debit memos (notes) received from your vendors. Credit notes are usually adjustment invoices sent by suppliers, and they are usually for negative dollar amounts. They are often referred to as “credit memos”. These differ from voucher adjustments, because in the case of a credit note, the supplier is sending the purchaser a formal notice of the change. Adjustments are more properly made by the purchaser as an internal correction (for data entry errors, etc.) and are not necessarily accompanied by formal documentation. A memo will be a separate line item on the vendor’s account and on reports. An adjustment will only affect the General Ledger and not the vendor balance.

Selection Criteria

Select the relevant company and select a batch or create a new one. To create a new batch, clear the Batch field, tab or click away from it to enable the [Create Batch] button, and click [Create Batch].

Memo Details – Tab

This tab is used to enter or edit a credit or debit memo’s basic details.

To add a new credit or debit memo to the batch, click the block toolbar’s [Insert] button; and to remove one from the batch, click [Delete].

Vendor

Select the vendor associated with the credit or debit memo being entered. The display-only field to the right of this field displays the vendor’s name.

Voucher #, Inv Num

This field lists all posted vouchers for the vendor. In the pop-up, the number column displays the voucher number (automatically generated by system and used in the backend) and the invoice code column displays the voucher’s invoice number, which is used to identify vouchers.

Select the voucher associated with the credit note being entered via the Voucher # field and its invoice number will be displayed by the Inv Num display-only field.

Since the credit note adjusts a previously entered voucher, the entry of the original voucher number and invoice code is mandatory, as the system will then display the outstanding amount due on the voucher being credited.

Amount (Memo)

Enter the amount of the credit memo. A positive amount will increase the liability, and a negative amount will decrease it.

If the adjustment is for retainage only, enter a 0 in this field and the retainage adjustment in the Retainage field below.

If the adjustment is for taxes only, enter a 0 in this field and use the Defaults tab to enter the tax change.

Example 1: Positive Amount

In the example above, a positive amount is entered in the Amount field.

Sample Aged Report (AP1000D) with positive memo transaction

The memo appears as a separate line in the report and the liability (i.e., the amount in the Outstanding Amount field) is increased by that amount.

Example 2: Negative Amount

In the example above, a negative amount is entered in the Amount field.

Sample Aged Report (AP1000D) with negative memo transaction

The memo appears as a separate line in the report and the liability (i.e., the amount in the Outstanding Amount field) is decreased by that amount.

Memo Date

Enter the date for the credit memo. This date will be used for aging of the credit memo, but not for the General Ledger distribution, which will use the date of record entered when the batch is posted. As a result, it may be desirable to enter only credit notes for the same fiscal period within the same batch.

Desc

This text field is used to enter a descriptive reference for each memo.

[Recalculate] – Button

If the memo has been distributed, but an amount change requires that it be re-calculated, use this button. A prompt will ask whether to delete the existing distribution. Click [Yes] to re-calculate it.

[Distribution] – Button

Pgm: VMEMOENT – AP Enter Memo; standard Treeview path: Accounts Payable > Voucher > Enter Debit/Credit Memos – [Distribution] button

Enter the disbursement information for the General Ledger, Job Cost and Equipment Cost or Preventive Maintenance modules for this memo. The system automatically debits the vendor’s Accounts Payable account and then wait for the operator to enter the required expense disbursement.

For further details about this pop-up, please refer to the following: Accounts Payable - Enter Vouchers - [Distribution] - Button.

Defaults – Tab

This tab is used to edit the memo’s taxes and retainage.

For further details about this tab, please refer to the following: Accounts Payable - Enter Vouchers - Defaults - Tab (Override Vendor’s Defaults).