Credit Memo Module

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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.   You to enter multiple credit memos against an invoice.

o        pc/MRP will ask if you plan to restock the returned items.

§         If you answer Yes:

§         Select the area to be restocked.

§         Select the invoice and line item to be credited.

§         pc/MRP will then create a credit memo for a negative quantity for the part number found in the line item credited.

§         Click on the OK button to accept the credit memo.

§         pc/MRP will then increase the onhand quantity of the part number.

 

§         If you answer No

§         Select the invoice and line item to credit.

§         Enter the dollar amount to credit the customer.

§         pc/MRP will create a credit memo for that invoice with an "NA" part number, a quantity of -1, and the dollar amount.

§         Click the OK button to accept the credit memo.

 

14.10.2  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.

o        Enter a credit memo as described earlier for that invoice

o        Enter an O type accounting transaction to register the credit memo, line item CM

o        Reprint the invoice for reduced amount for you and your customers records

o        When the check arrives for the reduced amount, enter the R type transaction for invoice for the reduced amount.

 

2. If the customer has paid the invoice (the R type payment for the invoice  has been entered into the general ledger) and calls requesting a credit on an existing open invoice.

o        Enter a credit memo as described earlier for the open invoice. Do not restock.

o        Enter an O type accounting transaction to register the credit memo, line item CM

o        Reprint the open invoice for reduced amount for you and your customers records

o        When the check arrives for the reduced amount, enter the R type transaction for invoice for the reduced amount.

o        If you wish to restock items from original invoice, enter a stock room adjusting transaction (Modules, Stockroom, New, Adjusting Transaction)

 

3. If the customer has paid the invoice (the R type payment for the invoice  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

o        Credit 1110, accts receivable, enter credit as a + amt

o        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 (do not use pay bills).

o        Enter a negative amount for the credit amount received

o        Debit 1110, accts receivable, enter credit as a + amt

o        Credit 1020, checking, enter credit as a + amt

o        Answer Yes when asked to print the check

o        pc/MRP will automatically put a Y in the credit memo complete field

o        pc/MRP will automatically enter the credit memo amount paid field as a negative amount paid.

 

4. If the customer has paid the invoice (the R type payment for the invoice  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.

14.10.3 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.

§         The complete field for all the line items and the credit memo will contain a Y.

§         The amount paid field for the last line item will not equal the amount due.

§         The amount paid field for the credit memo will equal $.00

§         The total amount paid will equal the total amount due for the entire invoice and credit memo.

§         All credit memo line items will be closed by placing a Y in their complete fields.

§         All credit memo line items will contain a negative amount paid.

§         The total amount due will equal the total amount paid for the entire invoice and credit memo.

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