Create a Vendor Credit Memo

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Overview

Vendors that owe you a refund will sometimes send credit memos for you to use at your discretion. The process of creating a vendor credit memo is almost identical to entering a vendor invoice. The main difference is that the account payable lines will be entered with negative values. If the amount of the account payable is negative, the invoice type will automatically switch to a credit memo.

Note: If applicable, refer to the Apply an Unposted Cash Disbursement or Credit Memo to a Payable article or the Unpost a Payable with an Applied Cash Disbursement or Credit Memo article.

Create a Vendor Credit Memo

Create a Credit Memo for the unpaid balance of the payable.

Navigate to Accounting Home and click the Create Entries tab. Then, under the Expenses menu, click Payables.
Select a list view (other than the Recently Viewed list view).
Click the Payable that you would like to create a Credit Memo for (or just create a new Payable from scratch).
If an existing Payable is selected, on the Payable page, click Clone w/ Lines. The Clone Payable intermediate screen displays.
On the Clone Payable page, enter the Date for the new Credit Memo.
Click the Clone as Credit Memo checkbox.
Note: The Clone as Credit Memo checkbox will only display if you initially selected a Payable invoice. If you selected an existing Credit Memo, this checkbox will not be available.

Note: Click here to view the above image in full screen.

Note: If you have Multi-Currency enabled, the Currency drop-list will display on the Clone Payable intermediate screen. If you change the currency for the Credit Memo, the Amounts will be the same as the original Payable, they are not converted to the new currency. However, the Ledger Amount will display in the currency of the Ledger.
Click Clone Payable. The Edit dialog box for the new Credit Memo displays.
Edit/update the information, as needed.
Click Save.

Notes:

If you need to edit the amount on a line, scroll to the Advanced Line Manager, and click the down error at the end of the line that you want to edit, and select Edit. Then, make changes, as necessary. If you do not have the Advanced Line Manager, click Mass Add/Edit Rows to edit a line.
The Payable Line(s) will display the Quantity as a negative number or the Unit Cost as negative, depending upon your setup for this option in the Enablements screen.

With Header Level Posting (HLP) enabled, if tax was calculated, the Tax Amount displays as part of the Payable Line.

Payable_HLP_2.4.png
Note: Click here to view the above image in full screen.

With Line Level Posting (LLP) enabled, if tax was calculated, the Tax Amount displays as a separate Payable Line.

Payable_HLP_2.5.png

Tip: To associate the credit memo with an original payable, place "Credit Memo for Payable number xxxxxxxxxx" in the Proprietary Payable Number field.

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Create a Vendor Credit Memo

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Create a Vendor Credit Memo

Overview

Create a Vendor Credit Memo

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