CREDIT MEMO MODULE

CREDIT MEMO MODULE

CREDIT MMEMO MENU

14.10.1 New (Enter A Credit Memo)

A credit memo is issued to a customer to cover returned goods, pricing errors, freight charges, etc. Credit memos can be created from the accounting menu (credit memo, new) and or the sales menu (new, sales return). Credit memos will appear in both your invoice and accounts receivable reports. pc/MRP versions 6.80 and higher allow you to enter multiple credit memos against an invoice.

Entering a credit memo with pc/MRP versions 6.88 and lower:

pc/MRP will display the last Invoice and Sales Order Number. You may overwrite these numbers and enter the invoice and sales order number you wish to enter a credit memo against.
Enter the dollar amount you wish to credit the customer.
pc/MRP will create a credit memo for that invoice with an "NA" part number, a quantity of 1 and a negative dollar amount.
Click the OK button to accept the credit memo.

Entering a credit memo with pc/MRP versions 6.89 and higher:

pc/MRP will ask if you plan to restock the returned items.

If you answer Yes:

Select the area to be restocked.
Select the invoice and line item to be credited.
pc/MRP will then create a credit memo for a negative qty for the part number found in the line item credited.
Click on the OK button to accept the credit memo.
pc/MRP will then increase the onhand quantity of the part number.

If you answer No

Select the invoice and line item to credit.
Enter the dollar amount to credit the customer.
pc/MRP will create a credit memo for that invoice with an "NA" part number, a quantity of -1, and the dollar amount.
Click the OK button to accept the credit memo.

14.10.2 If you are using pc/MRP's Accounting Module and have versions 6.80W, 6.82W, 6.84A or lower, use the following instructions (or update to a higher version). The following instructions assume you have entered an invoice and the O type accounting transaction for the invoice.
** Some of the transaction amounts and chart of accounts described below will not be automatically displayed.
** All invoices with credit memos and credit memos must be closed by hand when paid in full.

1. If the customer has not paid the invoice and calls requesting a credit on the invoice.

Enter a credit memo for that invoice as described earlier
Enter an O type accounting transaction to register the credit memo, line item CM

Debit 3010, business income, enter credit as a + amt
Credit 1110, accts receivable, enter credit as a + amt
pc/MRP will automatically put a Y in the credit memo posted field

Reprint the invoice for reduced amount for you and your customers records
When the check arrives for the reduced amount, enter the R type transaction for invoice for the reduced amount.

Debit 1020, checking, for the reduced amount
Credit 1010, accts receivable, for the reduced amount
pc/MRP will distribute the amount received to each line item until it runs out.
If the amount paid equals the amount due, you should close the invoice by editing each invoice and credit memo line items and entering a Y in their complete fields.
If you wish to reprint invoices or use the amount paid equals the amount due as a criteria to determine open and closed invoices. Edit the amount paid field fields on the invoice line items including the credit memo line item(s) and make sure the amount paid equals the amount due for each line item. The credit memo line items must contain a negative amount paid.

2. If the customer has paid the full amount of the invoice, the R type payment has been entered into the general ledger, and the customer now requests a credit in the form of a check to be paid at a later date.

o Enter a credit memo as described earlier.

o Enter an O type accounting transaction to register the credit memo, line item CM

§ Debit 3010, business income, enter credit as a + amt

§ Credit 1110, accts receivable, enter credit as a + amt

§ pc/MRP will automatically put a Y in the credit memo posted field.

o When you issue a check for the credit memo amt enter an R type transaction for the credit memo, line item CM

§ Enter a negative amount for the credit amount received

§ Debit 1110, accts receivable, enter credit as a + amt

§ Credit 1020, checking, enter credit as a + amt

§ Write down the accounting transaction number

§ To print the check

§ Select Accounting

§ Select Pay Bills, Print/Clear Checks

§ Select print unprinted checks

§ Select Build

§ Enter the above transaction number, Add, and Enter

§ Enter the amount of the check

§ Select Include

§ Print the check

o If the amount paid equals the amount due, you should close the credit memo by editing the credit memo line item and enter a Y in the complete field.

o If you wish to use the amount paid equals the amount due as a criteria to determine open and closed invoices. Edit the amount paid field in the credit memo line item and enter the amount paid as a negative amount.

3. If the customer has paid the full amount of the invoice, the payment has been entered into the general ledger, and the customer now requests a credit to be used on a future invoice.

· Enter a credit memo against the next invoice to be created for this customer as described in example 14.10.1. This will allow will allow you to enter just one O type transaction for the invoice (which will contain the credit memo) and one R type transaction for the invoice when you are paid.

14.10.3 If you are using pc/MRP's Accounting Module and have versions 6.80X, 6.82X, 6.84A or higher, use the following instructions. The following instructions assume you have entered an invoice and the O type accounting transaction for the invoice.
** All transaction amounts and chart of accounts described below will automatically be displayed.
** All invoices with credit memos must be closed by hand when paid in full.

1. If the customer has not paid the invoice and calls requesting a credit on the invoice.

Enter a credit memo for that invoice as described earlier
Enter an O type accounting transaction to register the credit memo, line item CM

Debit 3010, business income, enter credit as a + amt
Credit 1110, accts receivable, enter credit as a + amt
pc/MRP will automatically put a Y in the credit memo posted field

Reprint the invoice for reduced amount for you and your customers records
When the check arrives for the reduced amount, enter the R type transaction for invoice for the reduced amount.

Debit 1020, checking, for the reduced amount
Credit 1010, accts receivable, for the reduced amount
pc/MRP will distribute the amount received plus the credit memo amount(s) to each line item until it runs out of dollars to distribute.
If the invoice is now paid in full, close the invoice by editing the credit memo line item and putting a Y in the complete field.
If you wish to reprint invoices or use the amount paid equals the amount due as a criteria to determine open and closed invoices, edit the credit memo line item and enter a negative amount paid into the amount paid field.

o Enter a credit memo as described earlier.

o Enter an O type accounting transaction to register the credit memo, line item CM

§ Debit 3010, business income, enter credit as a + amt

§ Credit 1110, accts receivable, enter credit as a + amt

§ pc/MRP will automatically put a Y in the credit memo posted field.

o When you issue a check for the credit memo amt enter an R type transaction for the credit memo, line item CM

§ Enter a negative amount for the credit amount received

§ Debit 1110, accts receivable, enter credit as a + amt

§ Credit 1020, checking, enter credit as a + amt

§ Answer Yes when asked to print the check

§ pc/MRP will automatically close the credit memo by putting a Y in the credit memo's complete field. pc/MRP will also enter a positive dollar amount in the amount paid field equal to the credit amount.

§ If you wish to use the amount paid equals the amount due as a criteria to determine open and closed invoices. Edit the amount paid field in the credit memo line item and enter the amount paid as a negative amount.

3. If the customer has paid the full amount of the invoice, the payment has been entered into the general ledger, and the customer now requests a credit to be used on a future invoice.

o Enter a credit memo against the next invoice to be created for this customer as described in example 14.10.1. This will allow will allow you to enter just one O type transaction for the invoice (which will contain the credit memo) and one R type transaction for the invoice when you are paid.

14.10.4 If you are using pc/MRP's Accounting Module and have versions 7.05D, or 7.42B or higher, use the following instructions. The following instructions assume you have entered an invoice and the O type accounting transaction for the invoice.
** All transaction amounts and chart of accounts described below will automatically be displayed.
** All invoices with credit memos and credit memos will automatically be closed when paid in full.

1. If the customer has not paid the invoice and calls requesting a credit on the invoice.

Enter a credit memo for that invoice as described earlier
Enter an O type accounting transaction to register the credit memo, line item CM

Debit 3010, business income, enter credit as a + amt
Credit 1110, accts receivable, enter credit as a + amt
pc/MRP will automatically put a Y in the credit memo posted field

Reprint the invoice for reduced amount for you and your customers records
When the check arrives for the reduced amount, enter the R type transaction for invoice for the reduced amount.

Debit 1020, checking, for the reduced amount
Credit 1010, accts receivable, for the reduced amount
pc/MRP will distribute the amount received to each line item until it runs out.
If the amount paid equals the amount due, pc/MRP will automatically put a Y in each line item and credit memo(s) complete field.
pc/MRP will display the correct amount due and the correct amount paid if you wish to reprint invoices or use the amount paid equals the amount due as a criteria to determine open and closed invoices.

o Enter a credit memo as described earlier.

o Enter an O type accounting transaction to register the credit memo, line item CM

§ Debit 3010, business income, enter credit as a + amt

§ Credit 1110, accts receivable, enter credit as a + amt

§ pc/MRP will automatically put a Y in the credit memo posted field.

o When you issue a check for the credit memo amt enter an R type transaction for the credit memo, line item CM

§ Enter a negative amount for the credit amount received

§ Debit 1110, accts receivable, enter credit as a + amt

§ Credit 1020, checking, enter credit as a + amt

§ Answer Yes when asked to print the check

§ pc/MRP will automatically put a Y in the credit memo complete field

§ pc/MRP will automatically enter the credit memo amount paid field as a negative amount paid.

3. If the customer has paid the full amount of the invoice, the payment has been entered into the general ledger, and the customer now requests a credit to be used on a future invoice.

14.10.5 How versions 7.05D, 7.42B and higher close credit memos and invoices with credit memos automatically when an R type transaction is entered for them.

If an invoice line item is selected:

The program will add up the amount due, mamountdu (cost, freight, tax, discount) for all line items. The credit memo line item will be negative and is included the total amount due.
The amount paid is added to the amount paid to date.
The total amount paid is distributed to the amount paid field starting at the first line item until the amount paid is expended.
If the amount paid equals the total amount due, mamountrc >= mamountdu, pc/MRP closes the invoice and attached credit memo by putting a Y in the complete field of each line item and credit memo.
Under these circumstances

The complete field for all the line items and the credit memo will contain a Y.
The amount paid field for the last line item will not equal the amount due.
The amount paid field for the credit memo will equal $.00
The total amount paid will equal the total amount due for the entire invoice and credit memo.

If a credit memo line item is selected.

If any of the invoice line items are not complete, pc/MRP will ask you to select one of the invoice's line items.
If all of the invoice line items are complete:

All credit memo line items will be closed by placing a Y in their complete fields.
All credit memo line items will contain a negative amount paid.
The total amount due will equal the total amount paid for the entire invoice and credit memo.
pc/MRP will prompt you to print a check for the total amount of the credit memo(s).