Customer Invoice Memo
A credit memo lowers what a customer owes: goods came back, a price was too high, an allowance was agreed. It has the same layout as the Customer Invoice, and posts the other way round. Save with Posting Status Posted is the posting.
What it is for
The journal decides the kind of memo:
- Free text. Lines name the account debited: sales returns, discounts allowed, rebates.
- From a return order. Pick the sales order of the return (Sale Order); lines come from the goods received back and cannot exceed what is left to credit. Sales returns can also raise their memo by themselves (see Sales Return and Sales and Distribution Setting).
- Real estate unit refund. Pick the refund (Real Estate Unit Refund); see Unit Refund.
A posted memo is an open credit on the customer's account. It is used up by a Collection that clears it against invoices, or by a Customer Settlement that nets it against an invoice.
Every field in plain words
The header, address, terms, header and footer, and invoice lines are as on Customer Invoice. The differences:
| Field | Here |
|---|---|
| Customer | Pick any customer of the company |
| Posting Profile | The list offers the payables posting profiles as delivered. Leave it empty to use the customer's |
| Sale Order | The return order to credit (return journals only) |
| Real Estate Unit Refund | The refund to credit (refund journals only), then mandatory |
| Customer Invoice No, Invoice Date, Baseline Date, Due Date | Hidden as delivered. If they are shown for the company, Invoice Date fills Baseline Date and cannot be later than it |
| Totals | Line Discount Amount, Total Discount Amount, Net Amount, Tax Amount, Cost Elements and Payable Amount |
On a free-text line that has a Special Indicator, the discount must be 100%.
How to configure it
- One journal per kind of memo. Memos cannot be sent to the tax authority's digital invoicing: in a company set up for it, a memo in the company's currency on a journal that allows the authority is refused. Use a journal that does not allow the authority for memos.
- Switch line columns on Account Receivable Setting.
Scenarios
- A customer returns damaged goods. The return is received on the sales side; the memo is raised from the return order (or by itself), crediting the customer.
- A price was overcharged. Free-text memo, one line on sales returns or price adjustments for the difference, with the same tax group as the invoice so the tax comes back too.
- Year-end volume allowance. Free-text memo on the discounts allowed account; net it against the open invoices with Customer Settlement.
What posts
| Document | When | Debit | Credit |
|---|---|---|---|
| Customer Invoice Memo | Save | Each line's account for its net amount; the tax accounts for the tax | The customer's receivable account (from the posting profile) |
The lines are laid out by the posting keys of this screen on Process Post Key in General ledger. Undoing a posting is Reverse on the toolbar.
What it is connected to
- Customer Invoice, the document it credits.
- Collection and Customer Settlement use the open credit.
- Batch Posting posts parked memos.
- Unit Refund in real estate - a unit refund is paid by a customer invoice memo.
- Order to cash - the sales process, with its return variant.
- Break Auto Invoice On, on Sales and Distribution Setting - where a memo made from several orders starts a new one.
If something looks wrong
- "Invoice Date: ... cannot be greater than Baseline Date: ..." Move the invoice date back or the baseline date forward.
- "Basic Data - Line ID: ... - Discount Percentage must be 100% when a Special Indicator is specified." Set the discount to 100% or remove the special indicator.
- "Invoice Lines cannot be empty". Add a line.
- "Memo has been stopped for Return Order : ...". Crediting is stopped on that return order.
- "Basic Data - Line ID: ... - Sales Quantity: ... cannot exceed Balance Quantity: ...". Less is left to credit than you typed.
- "Digital Invoice is not applicable for Credit Memo". The journal allows digital invoicing. Use a memo journal that does not.
- "Posted Transactions cannot be changed." / "Posted Invoice Memo cannot be deleted". Reverse it instead.
- "Invoice Memo: ... cannot be deleted / cannot be reversed. Following Collections have been raised against it". Reverse those collections first.
- "This Document is Linked with Digital Invoice, you cannot reverse this Invoice". A memo linked to digital invoicing cannot be reversed.
- "Only Posted Vouchers can be reversed". Delete a parked memo instead.