MTS #20A - Credit Memos
Purpose: To create a credit memo on an invoiced sales order.
Keywords: The following is a list of key terms used in the SMARTSystem that you should be familiar with and understand.
Credit Memo – is based on an existing invoice to prevent a user from crediting a product not previously sold to a customer or to fraudulently enter a customer credit. The SMARTSystem prevents credits except against previously purchased products. All numeric values are entered as positive numbers without a minus sign.
SMARTSystem Option: There is an option in the Staff table to allow certain authorize users to delete a credit memo. Normally, credit memos are not deleted, but there are circumstances where a credit memo is entered in error and before the EOD process it can be deleted.
Overview:
Credit memos are created from invoiced sales orders.
Locate the customer invoice using the View Invoices option in the Sales Menu:
Click on the View Invoices sub-menu to display the View Invoices screen:
You can locate the customer invoice by selecting the:
- Customer Name
- Maximum Invoice # will show the invoice on the top line of this screen
Double click on the line for the invoice to be selected and the Invoice page will open.
Items once credited or returned will show in the columns highlighted below:
To create a return for the invoice, click on the item to be adjusted and a credit entry pop up allows you to enter a number for Quantity Returned:
Enter in the number of items being returned to inventory in the Quantity Returned field. You will also need to enter in the Quantity Adjusted.
Click the Credit button and the return is noted on the Invoice, but the credit memo will still need to be created by clicking on the "Create Credit Memo" button located on the right side of the invoice:
If an item is not being returned to inventory, you will only need to create an adjustment.
Click the Credit button and the adjustment is noted on the Invoice:
Prior to clicking on Create Credit Memo, any adjustments that need to be made to delivery, freight or other costs may be edited now. If you need to remove/change the credit on the item, you may do so by clicking on the same item again.
To finalize the adjustments, and create the Credit Memo, click on the Create Credit Memo button found on the right side of the screen:
Selected items on the Invoice now become a Credit Memo:
Locate the View Credit Memo from the
The Credit Memo can be located by the same number as its related invoice:
Using the New Unit Price:
The New Unit Price does not change the price of the item being credited/returned on the invoice. What it does is adjust the amount that is being credited.
Example: If you overcharged your customer for an item, you would enter the cost the customer should have been charged. The software will do the calculations and credit the customer the difference between what was charged and what should have been charged. An item that was billed to them at $1.15, that should have been $1.00, will create a credit of .15 per unit when $1.00 is entered into the New Unit Price field.
Select the item you want to apply the credit to:
The price the customer should have been charged is entered:
The amount that will be credited for each item is now shown on the invoice for that line item:
After clicking on the Create Credit Memo button, the credit memo is created with the difference between the unit price and the new unit price as the total credit issued.
The invoice now reflects that the 60 units has been credited:
Note that the total owed and unit prices on the invoice do not change. The credit memo(s) will transfer into your accounting system and do the financial adjustments there.
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