Overview

Important: This article applies only if you are using the Lightning UI.

A Credit Memo can be applied to a Payable to reduce its outstanding balance. For example, you might apply a Credit Memo issued for returned inventory to reduce the balance owed on a vendor's outstanding Payable. Use the Credit Memo Apply screen in the Lightning UI to search for Payables and apply a Credit Memo, including Payables with a different Payee than the Credit Memo.

In this article:

• 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 > Create Entries > Payables (under the Expenses menu).
2. Open the Credit Memo you want to apply and click Apply/Unapply Credit Memo. The Credit Memo Apply screen displays.

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3. To narrow the search criteria, use any of the following as necessary:
   • Issue Date Range: Click the Calendar icon in the From/To fields to select a date.
   • Due Date Range: Click the Calendar icon in the From/To fields to select a date.
   • Payable Amount: Enter a beginning and ending amount. An Issue Date or Due Date range must be entered to filter by amount.
   • Filter Payables by Payable Number, Payee Reference, or Posting Status.

   Important: If your org uses Multi-Currency, the Currency Conversion Rate on the Credit Memo must match the Currency Conversion Rate on the Payable. If the rates do not match, the Payable will not appear in the search results.

4. Click Filter Payables to search using the selected criteria.
5. Click the right arrow to move a selected amount into the Applied Amount field, or manually enter a specific amount.
6. Modify the Applied Date, if necessary.
7. Do one of the following:
   • Click Save & Refresh to save your changes and refresh the Credit Memo Apply screen.
   • Click Save & Complete to save your changes and return to the Payable record screen.
8. When the Credit Memo is applied, an AP Credit Memo (APM) is created, connecting the Credit Memo to the Payable. To review the applied information, click the Applied To tab.

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Apply a Credit Memo to a Payable with a Different Payee

Before You Begin: This applies when the Payee on the Credit Memo differs from the Payee on the Payable you want to apply it to, for example when a parent vendor issues a credit that should be applied to a subsidiary's Payable.

Warning: Applying a Credit Memo to a Payable with a different Payee requires deactivating the Invoice_and_Credit_Memo_Same_Payee validation rule on the AP Credit Memo object. This rule is deactivated org-wide, not just for the Credit Memo you're working on, so all users will be able to apply Credit Memos to Payables with mismatched Payees until it's reactivated. Availability of this action depends on your permission level.

1. Navigate to Accounting Home > Create Entries > Payables (under the Expenses menu).
2. Open the Credit Memo 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.

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6. On the Invoice_and_Credit_Memo_Same_Payee rule, deselect the Active checkbox.

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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.

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11. Do the following:
    • Search for and select the appropriate Payable Invoice.
    • Search for and select the Applied Accounting Period.
    • Enter the Applied Amount.
12. Click Save. The AP Credit Memo displays.

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13. Select the Details tab and click Apply/Unapply Credit Memo. The Credit Memo with a different Payee is now available to be applied.

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