Fields & Definitions for A/R Credit Memo

 

Credit Memo Field Definitions: 

Credit Memo Type  The type of Credit Memo (Invoice or General).   A Credit Memo can be created from two modules:  the Accounts Receivable Credit Memo module or the RMA (Return Material Authorization) module.  If the RMA is created from an Invoice the CM type will be "Invoice", if the RMA is a stand-alone the CM type will be "General".
Sales Tax Only  This box is checked if the Credit Memo is for the Sales Tax only.  This checkbox will only be displayed at the time when the 1st CM for an invoice is created or if the prior credit memo did not use any  amount of the tax/freight yet.  This checkbox will NOT be displayed on CMs that are generated via a  RMA Receiver. 
Freight   This box is checked if the Credit Memo is for the Freight Charge only.  This checkbox will only be displayed at the time when the 1st CM for an invoice is created or if the prior credit memo did not use any amount of the tax/freight yet.  This checkbox will NOT be displayed on CMs that are generated via a  RMA Receiver. 
Freight Tax   This box is checked if the Credit Memo is for the tax on the freight charge only.  This checkbox will only be displayed at the time when the 1st CM for an invoice is created or if the prior credit memo did not use any amount of the tax/freight yet.   This checkbox will NOT be displayed on CMs that are generated via a  RMA Receiver. 
Approved By Intials, date and time of user Approved By
Credit Memo No  The unique number assigned to the Credit Memo.  Note:  If the numbering is set to "Auto" once the "Next" number is selected, the counter moves to the succeeding number,  if the abandon changes button is selected that number appears to be considered as used and will be skipped even though the record was never changed.
Credit Memo Date The date of the Credit Memo.
Invoice/Ref No     The invoice number to which the Credit Memo will be applied.
Invoice Date  The date of the Invoice.
Status  Status of Credit Memo (Open, Approved, Edit)
Last Modified By Date and Initials of User Last Modified By 
Sales Order The unique sales order number to which the Invoice applies.
Order Date  This is the date of the Sales Order.
Customer The name of the customer receiving the Credit Memo.
Customer PO The customer’s Purchase Order number authorizing the Sales Order.
Add any special notes that pertain to this specific Credit Memo
GL Account Number This field will only appear for a General Credit Memo.
GL Account Description This field will only appear for a General Credit Memo. 
Reason for Change Enter in the reason for the Credit Memo.     
Current Invoice Balance The amount displayed within this field is pulled from the AR record and reflects any Cash Payments, AR Offsets & "Approved" Credit Memos, but will NOT include "Open" Credit Memos.
After the invoice information has been found, the system will check for any prior credit memos (open or approved) for the same invoice. If any are found, this button will display in Red. When this button is selected, a grid screen will appear listing the prior credit memos, the screen will have drill down capabilities so when an item is double clicked another instance of the credit memo screen will appear with the prior credit memo information shown. 
 
Invoice Balance After this CM and Open Cms Applied
The amount displayed within this field is pulled from the AR record and reflects any Cash Payments, AR Offsets, "Approved" and "Open" Credit Memos,  including the current one being added/edited. 
NOTE:  If the amount in this field is within 1% of the Invoice, a button will appear    (See below)  
When this button is pressed another CM line item will be created with a description of "Adj invoice total to 0" and an extended amount that will adjust the balance to "0".
Y/N  The box is for marking the line item on the invoice for crediting.
Part Number  The user’s internal number for the part.
Rev    The revision number pertaining to the Part Number, if any.
Type The user’s internal type to which the part number belongs
Class  The classification to which the part number belongs.
Description   The user’s description of the part number.
Quantity  The quantity to be credited.
Price Each The price for 1 quantity of the Part Number. 
Extended     Quantity multiplied by Price Each.
Scrap Qty  The amount of the returned stock that will be charged to scrap.  The CM fields are populated with the data from the invoice selected.  For the line items checked at the left, the qty entered in the Quantity field will default into the Scrap Qty field (this field is read only).  This is the qty that will hit the scrap account.  The system will automatically debit SCRAP and credit COGS.  (If user is creating a Credit Memo for a price adjustment to a Customer Invoice and is NOT returning the goods and does NOT want the GL Transaction to hit the scrap account then we suggest that the user creates a General Credit Memo).   

 

Credit Memo Summary/Credit Memo Line:

 

Sub Total  This sub-total is the amount of returned product or price change being credited.
Discount Amt  This sub-total is the amount of the discount being calculated into the Credit Memo Total. 
Sales Tax    The sub-total is for the amount of sales tax being credited.
Freight Charge   The amount of the Freight Charge being credited.
Freight Tax  The amount of the Freight Charge tax being credited. 
Credit Memo Total   The total Credit Memo allowed to the Customer.

 

Credit Memo Summary/Invoice Detail Line:

 

Sub Total   This sub-total is the amount of product on the original invoice. 
Discount Amt   This sub-total is the amount of the discount on the original invoice.
Sales Tax   The sub-total is for the amount of US sales tax, or Primary and/or Secondary sales tax on the original invoice.
Freight Charge    The amount of the Freight Charge on the original invoice.
Freight Tax     The amount of the US or Primary and/or Secondary Freight Charge tax on the original invoice.
Credit Memo Total The total of the original invoice.

The GST (Primary) tax and PST (Secondary) tax is divided into the Sales tax and Freight tax on the Credit Memo Summary/Invoice Detail Line:  

For Example: 

Primary Tax (GST):  144*10% (sales tax) + 0 (no freight tax is calculated) =$14.40

Secondary Tax (PST):  144*8% (sales tax) + 12*8% (Freight tax)  =  $12.48


Divided into sales tax and freight tax:
 
Sales Tax: 144*10% (sales tax)  +  144*8% (sales tax)  =  $25.92
 
Freight Tax  0 (from primary tax)  +  12*8% (from secondary tax)  =  $0.96