1. Accounts Receivable Credit Memo

1.1. Prerequisites for A/R Credit Memos

Users MUST have full rights to the "AR Offsets, Write-offs & CM" in Accounting Security .   Users with “Accounting Security Supervisor” rights will automatically have access.
1.2. Introduction for A/R Credit Memos
A Credit Memo can be created from two modules:  the Accounts Receivable Credit Memo module or the RMA (Return Material Authorization) module.

The Accounts Receivable Credit Memo section provides the ability to issue Credit memos against specific Invoice (Invoice CM) or create a General CM.  An Invoice Credit Memo will debit SCRAP and credit COGS.  If a partial credit is required without returned goods, create a General Credit Memo.  For returned goods, create an RMA .  
 
The RMA (Return Material Authorization) module notifies receiving to expect a return from a Customer.  The authorization also allows for reworking/replacing the order so that the user doesn’t have to go to another screen to create a Sales Order.  Once the RMA is received, a Credit Memo automatically forwards to the Accounting Accounts Receivable Credit Memo module where it can be viewed and printed.  Rather than issuing an invoice Credit memo, the user may wish to use the RMA module instead.  Please refer to the RMA (Return Material Authorization) Management manual.  Note:  DO NOT use this module to create a Credit Memo if it involves return of inventory from a Customer, use the RMA process.  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". 

See the attached word document <<How_CM_Affect_GL_Accts_090106.docx>> for further detail on how the different types of Credit Memo's affect the GL Accounts. 

    

1.3. 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 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 NOT be displayed on CMs that are generated via a  RMA Receiver. 
Freight Tax Only  This box is checked if the Credit Memo is for the tax on the freight charge only.  This checkbox will NOT be displayed on CMs that are generated via a  RMA Receiver. 
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 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.
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. 
This button will open up a screen for entering the reason for the Credit Memo.     
Approved By Intials, date and time of user Approved By
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

                           

 

                                           

                                   

                                          

                               

 

                                      

  

1.4. How To ...... for A/R CRedit Memos
1.4.1. Find an A/R Credit Memo
Enter Manex.exe Accounting/Accounts Receivable/A/R Credit Memo   

The following screen will appear:

Depress the Find record action icon to find an existing Credit Memo or an RMA Credit Memo.  The following screen appears: 

Depress the radial for the Type of Credit Memo you want to find:  All Credit Memos, Open CM's (Not Approved) Only, Approved Only, or Cancelled Only. 

Then Depress the radial to Find by:  CM Number, Customer Name, Invoice/Reference, or RMA Number.

Once you have made the selections depress the Find button:

 

  

A list of Credit Memos related to the find selection will appear. 

Select the Credit Memo you’d like to appear on the screen, by typing the Credit Memo number into the red box or highlighting and double clicking.

  

Once an existing Credit Memo has been selected, the detail screen for that CM will be displayed: 

1.4.2. Edit an A/R Credit Memo

Find an Exising Credit Memo with an "OPEN" status.

Depress the Edit record action icon.

When in the edit mode the Credit Memo Date is editable.  User can also check or uncheck line item numbers to be credited.  Once the Status changes from OPEN to APPROVED the Credit Memo can no longer be edited.

 

 

1.4.3. Add an A/R Credit Memo
1.4.3.1. Invoice Credit Memo

Enter Manex.exe Accounting/Accounts Receivable/A/R Credit Memo   

 

The following screen will appear: 

 

1.4.3.2. General Credit Memo

Enter Manex.exe Accounting/Accounts Receivable/A/R Credit Memo   

The following screen will appear:

 

Depress the Add record action icon and the following Selection screen will appear.  Depress the General CM button: 

  

The following screen will appear:

The Invoice Number field changes to a reference number, and the user enters a Reference Number for the Credit Memo.    Note: The user is given a message if they use a reference number on a credit memo that has already been used for another customer and it will not allow them to save the credit memo if the customer and the reference number does not match.  


The user will receive the following message if they happen to enter in a reference number that matches any invoice numbers that exist on the aging for the same customer.

If it does happen to match an invoice on the aging, the user will receive this message and will be required to change the reference number.    

The user will receive the following message if they happen to enter "ppay" in the Invoice/Reference field. 

The system will not allow a Invoice/Reference number to begin with "ppay", because the system considers a transactions that begins with "ppay" as a Prepayment entry.
 

Check the Taxable box if applicable.  Check the Freight Taxable box if applicable.  Credit memo date will default in but user may change date if needed.

Enter Customer from the pull down provided by pressing the down-arrow next to the customer field: 

  

A General Ledger Account number must be supplied for a general Credit Memo.  Note:  When creating a General Credit Memo users should not select the same GL account number that is entered in the Actsetup for the Account Receivables.  If you do, then the resulting transaction will debit and credit both the sane GL account number.  The following GL screen will appear:

 

Select the method of finding the General Ledger Account number, by Account Type or Account Numbers. 

If you select Find By Account Type, depress the down arrow on the right hand side of the screen.

Select the desired Account Type, then select the Account Number.

Depress the OK button. 

If you select by account number, depress the down arrow next to the Account Numbers box and the accounts will appear.  Highlight the Account Number you wish to use.  
After entering a General Ledger account number and selecting a Customer, the user may check the box at the far left of the detail information grid.

Then the user enters the description, quantity and price each to be credited.  If the Taxable box is checked the Sales Tax will default in.  If the Freight Taxable box is checked user must enter in the Freight Charge to be Credited as displayed below.  The Credit Memo Total will calculate automatically.

User MUST enter a reason for the Credit Memo before saving.  If Credit Memo Reason is blank user will receive the following message.



To enter the reason for the General Credit memo.  Depress the Credit Memo Reason button.  Depress the Edit button.  Enter the Credit Memo Reason.  Depress the Save button.  Depress the Exit button.

Then the Credit Memo may be saved and recorded by depressing the Save record action icon, or deleted by depressing the Abandon changes action icon. 

Depress the Approval button, and receive the following message.

Once Credit Memo has been approved the CM Status will change from Pending to Approved, and the CM will forward to the A/R Aging module.  If desired, it may be Offset via the A/R Offset module. 

1.5. Reports for A/R Credit Memos

The Return Material Authorization module notifies receiving to expect a return from a Customer.  The authorization also allows for reworking/replacing the order so that the user doesn’t have to go to another screen to create a Sales Order.  Once the RMA is received, a Credit Memo automatically forwards to the Accounting Accounts Receivable Credit Memo module where it can be viewed and printed.

To view the Credit Memo created in the Return Material Authorization module, use the Find procedure. 

To obtain the Credit Memo reports, depress the Reports button.  The following screen will appear:

Select one of the radio buttons for the output you desire.  Select from Screen, Printer, XL File, TXT File, or PDF.

Highlight the report.

Depress the option tab.

  

Credit Memo Displayed 

Selecting the “Print for Selected Current Credit Memo” radio button and depressing the OK button, will print the Credit Memo that is open within the Credit Memo Module.

Selecting the “Select Credit Memo from the List” radio button will bring up a list of open Credit Memo's to select from. 

Select the appropriate Radio button to list "Unprinted CM" or "Printed CM" to select from.  Highlight the Credit Memo(s) of interest and depress the > button.  Your selection will appear in the right hand box.   If you want all of the Credit Memo’s, depress the >> button. 

Depress the Ok button. 
  

The Following is printed:

Credit Memo Summary Report:

Select the appropriate From and To Date Range. 

Select the Customers you want by highlighting the Customer then depressing the > button.  If you want all of the Customers, depress the >> button.  Your selection will appear in the right hand box.

Depress the OK button 

  

 The following report will appear:

Credit Memo Register Report:

Select the appropriate From and To Date Range. 

Depress the OK button. 

  

The following report will be available: