Credit Memos

If a vendor is unable to fulfill one or more items of an order, a Credit Memo may be created. (Alternatively, a back order may also be created.) This feature must be activated by your system administrator, in System Management. Once active, you can add a Credit Memo by clicking the Credit Memo button on the Purchasing – Invoices screen to activate the Purchasing – Credit Memo screen. Only items included on the original invoice can appear in a Credit Memo.

Note: If the Credit Memo is not active in your system, you can enter credits as an invoice with negative quantities.

A Credit Memo attaches a line to the original invoice, and adjusts the totals and inventory as applicable. It does not create a new invoice.

1.	The Credit ID is generated by adding ‘CM’ to the invoice number. This can be edited if necessary.

2.	The Credit Date and Returned Time fields are populated with the current system date. These fields can be edited if necessary.

3.	The Item Name column only contains the items entered on the original invoice available to create the Credit Memo.

4.	The Credit QTY column only accepts negative value quantities.

5.	Once the Credit Memo is adjusted, click Save to apply the changes to the invoice.

Note that a Credit Memo does not create a new invoice; it simply adds a line to the adjusted invoice to modify the inventory and costs appropriately.

Deleting Credit Memos

To delete a Credit Memo, click Delete Credit Memo on the Purchasing – Invoices screen. This button is only functional if the invoice has a Credit Memo and the invoice is not finalized.