Processing AP Credit Memos 

This procedure is used to create a credit memo (negative accounts payable invoice) in order to adjust the balance of a previously entered invoice or to record a credit memo issued by a vendor.  The procedure for entering a credit memo is the same as that for entering an invoice except that a credit memo is entered as a negative amount (the amount of the invoice should be entered with a  "-" preceding it.  The operator should also precede the invoice amounts being allocated to the GL with a negative sign (the effect is a debit entry to the AP account and a credit entry to the account(s) the invoice is charged to).

•      Select the AP Invoice Entry program from the menu.  FIND the appropriate vendor and enter the invoice description, and invoice number (if the credit memo was issued by the vendor, use the credit memo number assigned by the vendor, if the credit is being created to adjust an invoice, reference the invoice being adjusted).  Enter the amount of the credit memo with a negative sign ("-") preceding it.

•      Allocate the credit memo to the appropriate GL accounts.   The amount of the credit memo being allocated to each account should generally be preceded by a "-". Note that a credit memo will create a debit entry to accounts payable and a credit entry or entries to the accounts that the credit memo is allocated  to (a debit entry to the accounts can also be made but it will have the effect of increasing the amount of the invoice left to be allocated).

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AP Invoice Assignment