Applying a Sales Credit Memo
The below process highlights how to apply a Sales Credit Memo in Order Entry. Parish accounting users should create and apply Sales Credit Memos at the entity level. Once Sales Credit Memos are created, the credits need to be applied to Customer Invoices when receiving payments.
Steps
Initial Navigation – To navigate to the Select Invoices for Payment screen (from the Accounting Console):
- Go to the Applications dropdown
- Select the Accounts Receivable Module
- Under Activities, click on the Receive a Payment – New (link)
selecting the customers for application of credit memos
The title “Receive Payment” should appear in the upper left corner. The first data section on the page will have the title “Payment Information.” Enter selection criteria as follows:
- Account Type – Select the “Bank Account” option per the radio options
- Account – Leave the default bank account per the drop-down
- Payment Method – Select the “Record Transfer” option from the drop-down
- Customer – Select Customer the Credit will be applied towards
- Amount Received – if entering a payment while applying a credit, then the amount, otherwise enter $0 when just applying an existing Credit Memo to an Invoice
- Receipt Date – enter a date consistent with the Payment Date (# 10 - below)
- Payment Date – enter a date the Credit Memo will be applied. This date should be equal or prior to the date entered when creating the AR Credit Memo (see PSC OE – Creating a Sales Credit Memo)
- Reference Number – if entering a payment at the same time as applying a credit memo, enter the customer payment document, otherwise leave blank if only applying a credit to an invoice
- Enter a Payment Memo if helpful
- Attach supporting documentation for the transaction is strongly recommended
- Click on Select Invoices button
selecting the invoices for application of credit memos
The second data section on the page will have the title “Invoices Selected for Payment.” Enter information as follows:
- Utilize the Manage Filters to help narrow the search if there are a lot of invoices available to chose from
- Select the invoice you want to apply a credit to by clicking in the box to the left of Customer Name.
- Click Add & Close
APPLY CREDIT(S) TO the invoices SELECTED
Return to the Receive Payment screen to apply credits to invoices selected above.
- Select the applicable invoice using the checkbox to the left of the customer name
- If applying the credit while receiving a Payment, verify the Payment amount, otherwise enter $0
- Select the Apply Credits button.
- The invoice balance will be adjusted by the amount of credits applied to the invoice
- Click Post
VERIFY CREDITS APPLIED ON SALES REGISTER
Review the Sales Register Report or Accounts Receivable Aging to verify the credit memo(s) was applied correctly. To run a Sales Register Report, please utilize the following steps:
- Select report from Accounts Receivable > Reports > Registers > Sales
- Enter the Date Parameters for the report
- Enter any helpful Filters for the report
- Enter Format
- The Report Title changes, if necessary
- Click View or Print
