Create a purchase credit memo

Purchase credit memos have the same characteristics as a purchase order or purchase invoice. The General FastTab includes company information, which comes from the Vendor Card. The Lines include the details of the credit memo.

There are several methods that can be used to create a purchase credit memo.

Create a purchase credit memo using the Create Corrective Credit Memo action

You can create a corrective purchase credit memo from a posted purchase invoice with the Create Corrective Credit Memo action. After you create the credit memo, you can complete, and then manually post the credit memo to reverse the posted invoice. When you create a purchase credit memo directly from a posted purchase invoice, you don’t have to perform any applications. Typically, this method is used when a partial amount is being refunded.

To create a purchase credit memo using the Create Corrective Credit Memo action

1. Choose , enter posted purchase invoices, and then choose the related link.

   The Posted Purchase Invoices page opens.

2. Select the posted purchase invoice for which you want to create a purchase credit memo, and then on the action bar, choose Correct > Create Corrective Credit Memo.

   The Purchase Credit Memo page opens.

   The purchase credit memo includes the same vendor and purchase detail information as the posted purchase invoice from which the credit memo was created.

3. On the General FastTab, in Vendor Cr. Memo No., specify a value.

   If this credit memo is being created because a vendor issued a credit memo, specify the number that the vendor provided. Otherwise, if this credit memo is being created for some other reason, such as an accounting error, you may have to specify a unique number. Typically, the format is CR followed by the invoice number, for example, CR1234321.

4. As required, on the purchase credit memo adjust the amounts or any other details.

   For example, if the vendor is crediting you a quantity of 2 because 2 items were defective, on the Lines, in the Quantity field, enter 2.

5. On the action bar, choose Release > Release.

   The Status of the purchase credit memo changes from Open to Released.

6. Choose Posting > Post.

   A dialog box appears.

7. To post the credit memo, choose Yes.

   A dialog box appears.

8. To open the posted credit memo, choose Yes.

   The Posted Credit Memo page opens. If you go to the Posted Purchase Invoices page, on the posted purchase invoice record from which you created the purchase credit memo, you can see that the Remaining Amount field has been reduced by the credit memo amount.

Create a purchase credit memo with Copy Document

The general information and lines from a purchase invoice can be copied to a purchase credit memo by using the Copy Document action.

To create a purchase credit memo with Copy Document

1. Choose , enter purchase credit memos, and then choose the related link.

   The Purchase Credit Memos page opens.

2. On the action bar, choose New.

   The Purchase Credit Memo page opens.

3. On the action bar, choose Prepare > Copy Document.

   The Copy Purchase Document page opens.

4. In Document Type, specify Posted Invoice.

5. In Document No., specify a value.

6. Turn on Include Header.

7. Ensure that Recalculate Lines is turned off.

8. To copy the posted invoice to the credit memo, choose OK.

   The purchase credit memo is populated with all of the information from the posted purchase invoice.

9. If desired, edit the lines.

Create a purchase credit memo manually

You can manually create purchase credit memos. You may have to manually create a purchase credit memo for an invoice that is related to a purchase order. You may also have to manually create a purchase credit memo to partially credit a purchase invoice or if a vendor has issued a specific credit memo.

To create a purchase credit memo manually

1. Choose , enter purchase credit memos, and then choose the related link.

2. On the action bar, choose New.

   The Purchase Credit Memo page opens.

3. In Vendor Name, specify the vendor that is to be associated with this purchase credit memo.

4. In Vendor Cr. Memo No., specify the credit memo number from the credit memo that you received from your vendor.

5. On the Lines, specify information manually.

6. Complete the remaining fields on the purchase credit memo as required.

7. To change the Status of the purchase credit memo from Open to Released, on the action bar, choose Release > Release.

   The Status field changes to Released.

8. To post the purchase credit memo, on the action bar, choose Posting > Post.

   A dialog box appears.

9. Choose Yes.

   A dialog box appears.

10. To open the posted credit memo, choose Yes.

Create a purchase credit memo using Get Posted Document Lines to Reverse action

When manually creating a purchase credit memo, instead of populating the Lines manually, you can automatically populate the Lines with the Get Posted Document Lines to Reverse action.

To create a purchase credit memo using Get Posted Document Lines to Reverse action

1. Choose , enter purchase credit memos, and then choose the related link.

   The Purchase Credit Memos list page opens.

2. On the action bar, choose New.

   The Purchase Credit Memo page opens.

3. In Vendor Name, specify the vendor that is to be associated with this purchase credit memo.

4. In Vendor Cr. Memo No., specify the credit memo number from the credit memo that you received from your vendor.

5. To automatically populate the Lines, choose Prepare > Get Posted Document Lines to Reverse.

   The Posted Purchase Document Lines page opens and displays a list of documents for the vendor that you specified on the General FastTab.

6. To view reversible lines only, turn on Show Reversible Lines Only.

   Any closed document lines no longer display.

7. Depending on the scenario, perform one of the following steps:

   • If this purchase credit memo is associated with a purchase order and if you are going to receive the items on the purchase order in the future, to return the original quantity back to your purchase order, turn on Return Original Quantity.

   • If you are creating a purchase credit memo and if the purchase order is closed and adding the items back to the purchase order is no longer required, turn off Return Original Quantity. Also, if you are creating a credit memo that is not associated with a purchase order invoice, turn off Return Original Quantity.

8. Select one or more lines to add to your purchase credit memo, and then choose OK.

   The selected lines are added to the purchase credit memo.

9. Update the fields on the purchase credit memo as required.

10. To change the Status field of the purchase credit memo from Open to Released, on the action bar, choose Release > Release.

    The Status field changes to Released.

11. To post the purchase credit memo, on the action bar, choose Posting > Post.

    A dialog box appears.

12. Choose Yes.

    A dialog box appears.

13. To open the posted credit memo, choose Yes.

Apply purchase credit memo entries

When you manually create a purchase credit memo, and you get posted document lines to receive, entries are not applied together. You must manually apply the purchase credit memo entries. The purchase credit memo entries can be applied from the vendor ledger entries or from the purchase credit memo.

To apply purchase credit memo entries from the Vendor Ledger Entries page

1. Choose , enter vendors, and then choose the related link.

   The Vendors page opens.

2. Select the vendor for which you want to apply purchase credit memo entries, and then on the action bar, choose Manage > View.

   The Vendor Card page opens.

3. On the action bar, choose Vendor > Ledger Entries.

   The Vendor Ledger Entries page opens.

   Select the credit memo for which you want to apply entries, and then on the action bar, choose Home > Apply Entries.

To apply purchase credit memo entries from a purchase credit memo

1. Choose , enter purchase credit memos, and then choose the related link.

   The Purchase Credit Memos page opens.

2. Select the purchase credit memo for which you want to apply entries, and then on the action bar, choose Manage > View.

   The Purchase Credit Memo page opens.

3. On the action bar, choose Home > Apply Entries.

   The Apply Vendor Entries page opens.

4. To apply the credit memo against an invoice, select the invoice for which you want to apply the credit memo, and then on the action bar, choose Home > Set Applies-to ID.

   The purchase credit memo number is populated in Applies-to ID.

5. In Amount to Apply, specify the amount to apply.

6. To close the Apply Vendor Entries page, and return to the Purchase Credit Memo page, choose OK.

7. To change the Status of the purchase credit memo from Open to Released, on the action bar, choose Release > Release.

   The Status field changes to Released.

8. To post the purchase credit memo, on the action bar, choose Posting > Post.

   A dialog box appears.

9. Choose Yes.

   A dialog box appears.

10. To open the posted credit memo, choose Yes.

See also

Purchase credit memos

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