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Issue a Credit Memo Against an Invoice

Owned by Kyle Niekamp
Last updated: 06 23, 2022 by Claire Aleman

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; see examples below:

  • 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

Video:

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