Overview:
A credit memo allows you to post a credit against an previously billed job, work order, or maintenance contract AR invoice. Credit Memo's will debit sales and credit accounts receivable. Credit memos can be issued for a number of reasons, including the below examples
- Correct an over billing
- Handle a customer dispute
- Short Shipment of Materials/Wrong Materials Shipped
- Write off customer short payments
- Customer relationships
The Issue a Credit Memo Against an AR Invoice window is where you can enter credit memos in the system. Prior to posting a credit memo, you must run the Prepare Credit Memos For Printing process, followed by the Complete Credit Memos for Printing process. After posting a credit memo, the credit will be available in the cash receipt window for selection.
Benefits:
- Quickly post an adjustment to credit a customers AR balance on an invoice
- Track credit memo reason codes to understand why a user issues the credit
- Ability to offset this during the cash receipt process ensuring the AR Aging stays clean
Roles:
- Accounts Receivable Manager
Location:
- Billing & Accounts Receivable > Credit Memos/Reversals > Issue a Credit Memo Against An AR Invoice
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