Apply a Credit Memo to a Payable

Overview

Important: This article for applying a Credit Memo to a Payable is only applicable if you are using the Lightning UI.

A Credit Memo is a transaction that can be applied to a customer’s invoice as a payment or reduction. This means that a Credit Memo is used to offset an existing customer balance.

The Credit Memo Apply screen in the Lightning UI supports record pagination of up to 2,000 records, with 15 results per page. From this screen, you can quickly and easily perform tasks such as the following:    

• Enter and search for a specific Payable Number
• Enter and search for a specific Payee Reference  
• Select the Posting Status as Posted, Approved, or All
• Enter an Issue Date Range and/or a Due Date Range
• Enter a Payable Amount range.

Do You want to:

• Apply a Credit Memo to a Payable in Lightning
• Apply a Credit Memo to a Payable with a different Payee

Apply a Credit Memo to a Payable in Lightning

1. Navigate to Accounting Home and click the Create Entries tab. Then, under the Expenses menu, click Payables.
2. Open the Credit Memo that you want to apply and click Apply/Unapply Credit Memo. The Credit Memo Apply screen displays.  
   
   
   Note: Click here to view the above image in full screen. 
   
   
3. To modify/narrow the search criteria, perform any of the following, as necessary:
   1. Issue Date Range - Click the Calendar icon in the From/To fields to select a date.
   2. Due Date Range - Click the Calendar icon in the From/To fields to select a date. 
   3. Payable Amount - Enter a beginning and ending amount. To filter by amount, an Issue Date or Due range must have been entered. 
   4. Filter Payables based upon your selection of Payable Number, Payee Reference, or Posting Status. 
      1. 1. Issue Date Range - Click the Calendar icon in the From/To fields to select a date.
         2. Due Date Range - Click the Calendar icon in the From/To fields to select a date.
         3. Payable Amount - Enter a beginning and ending amount. To filter by amount, an Issue Date or Due range must have been entered.
   5. Click Filter Payables to search for the selected criteria.
4. Click a right arrow to move a selected amount into the Applied Amount field. Otherwise, manually enter a specific amount in the Applied Amount field. 
5. Modify the Applied Date, if necessary. 
6. Do one of the following:
   1. Click Save & Refresh to save your changes and refresh the Cash Disbursement Apply screen.
   2. Click Save & Complete to save your changes and return to the Payable record screen.
7. When the Credit Memo is applied, an AP Credit Memo (APM) is created, which connects the Credit Memo to the Payable. To review the applied information, click the Applied To tab.
   
   
   Note: Click here to view the above image in full screen.  
   

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Apply a Credit Memo to a Payable with a different Payee

In order to apply a Credit Memo to a Payable with a different Payee, the “Invoice_and_Credit_Memo_Same_Payee” validation rule needs to be deactivated on the AP Credit Memo object.

Note: The ability to perform this is based upon your permission level.

1. Navigate to Accounting Home and click the Create Entries tab. Then, under the Expenses menu, click Payables.
2. Open the Credit Memo that you want to apply.
3. Click the Setup icon and select Edit Object.
4. Select the AP Credit Memo object.
5. Select Validation Rules and click Edit.
   
   
   Note: Click here to view the above image in full screen.  
   
   
6. On the Invoice_and_Credit_Memo_Same_Payee Rule Name, de-select the Active checkbox.
   
   
   Note: Click here to view the above image in full screen.  
   
   
7. Click Save.
8. Return to the Payable screen with the selected Credit Memo displayed, and refresh the page.
9. Click the Applied To tab.
10. From Applied Invoices to Credit Memo, click New.
    
    
    Note: Click here to view the above image in full screen.  
    
    
11. Do the following:
    1. Search for and select the appropriate Payable Invoice
    2. Search for and select the Applied Accounting Period
    3. Enter the Applied Amount.
12. Click Save. The AP Credit Memo displays.
    
    
    Note: Click here to view the above image in full screen.  
    
    
13. Select the Details tab and click Apply/Unapply Credit Memo. The Credit Memo with a different Payee is now available to be applied.
    
    
    Note: Click here to view the above image in full screen.  
    

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