Credit Memo Module

You are looking at an old Manual of pc/MRP,
the Complete MRP Inventory/Accounting Package.

Please click below for
the latest pc/MRP Manual

Please click below to
reach the pc/MRP Main Page

Manual Logo

Main Page Logo

 

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:

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

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.

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.

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

         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.

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

         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.

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.

14.10.5 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.

pc/MRP will prompt you to print a check for the total amount of the credit memo(s).