AP Credit Memo record

AP Credit Memos can be entered in Restaurant365 to record any credits that are due. Credit Memos can then be applied to Open AP Invoices. If the Credit Memo has a 'Document Issues' tab listed, click here to learn how to resolve Document Issues.

Navigation

Create an AP Credit Memo in the Create menu

1) Open the Create menu.
2) Select Credit Memo.

Create an AP Credit the AP Transactions page

1) Open the Accounting application.
2) Expand the Accounts payable category.
3) Select AP transactions.
4) Click Create.
5) Select AP Credit Memo.

View an Existing AP Credit Memo

1) Open the Accounting application.
2) Expand the Accounts payable category.
3) Select AP transactions.
4) Click the desired AP Credit Memo number to open the transaction record.

Vendor credits issued as a check or ACH follow a unique process when entered in R365. Click here to learn how to reconcile these Check or ACH Vendor credits.

Security

The Permissions listed here are associated with AP Credit Memos within Accounting. These Permissions can be added to Custom User Roles or single Users. Learn more about managing Permissions and Custom User Roles here.

These Permission are for Accounting only and do not provide access to AP Credit Memos within the Inventory app.

AP Credit Memos Permissions are found in the Permission Tree as follows:

Accounts Payable
- AP Credit Memos
  - View AP Credit Memos Within Accounting
  - Edit AP Credit Memos
  - Create AP Credit Memos
  - Approve AP Credit Memos
  - Unapprove AP Credit Memos
  - Void AP Credit Memos
  - Unvoid AP Credit Memos
  - Delete AP Credit Memos

The Permission Access report can be used to determine which User Roles or Users already have these Permissions assigned.

Learn more about User Setup and Security here.

AP Credit Memo Header

	Field	Description
1	Transaction and Operations Status	Displays both the Transaction status and Operations status for the credit memo. Transaction Status: Indicates whether the credit memo is Approved or Unapproved. Operation Status: Indicates whether the credit memo is In progress or Completed. Once the transaction is approved, the Operations status is automatically set to Completed.
2	Location	The location for the AP credit memo header. This defaults to the user’s default location but can be changed. When updated, the Location field in the Details grid also updates to match. Inactive locations appear grayed out and cannot be selected.
3	Vendor	The vendor from whom the credit memo was received. Once selected, the vendor address appears below AP Credit Memo in the top ribbon, and any applicable 1099 information displays next to the GL date for quick reference. The vendor’s entry method determines whether the Details grid uses Account or Item entry.
4	Credit number	The credit memo number. If a number is not provided on the document, a value must be entered manually.
5	Document date	The date shown on the credit memo document.
6	GL date	The date the credit memo posts to the general ledger. If this date differs from the Document date, an orange alert icon appears to indicate the mismatch.
7	Amount	The total credit memo amount. An Unassigned amount warning appears until the total equals the sum of the detail lines in the Details grid.
8	1099 amount	Defaults to the Document amount and can be adjusted manually. An alert icon appears if the 1099 amount differs from the Document amount. The credit memo cannot be saved or approved if the 1099 amount is greater than the Document amount or less than $0. This field appears when the vendor is marked as a 1099 vendor and remains visible on approved transactions even if the vendor’s 1099 status later changes.
9	1099 form	Auto-populates with the default 1099 form from the Vendor record. The selector lists only active 1099 forms available for the vendor. This field appears only for 1099 vendors.
10	1099 box	Auto-populates with the default 1099 box from the Vendor record. If Allow box override is enabled on the vendor, the box can be changed; otherwise, it is read-only. This field appears only for 1099 vendors.
11	Comment	An optional field for adding internal notes or additional context about the credit memo.
12	Table Options	Edit: Enables editing in the detail lines only. +Size: Increases the size of the Details table. -Size: Decreases the size of the Details table.
13	Upload file	Opens the file explorer for file selection.
14	Attach from Documents	Opens a panel where users can select a previously uploaded document from Documents to Porcess.

AP Credit Memo Details

Credit Memo details can be entered in two different ways: Entry by Account or Entry by Item. Both ways are detailed out below.

Entry by Account - Columns

Column	Description
GL Account	The GL account for the detail line.
Amount	The amount for the individual detail line.
Comment	An optional comment for the detail line.
Location	The location associated with the detail line. This defaults to the location selected in the header but can be updated if needed.
Start date of service	The start date of the service period being credited or refunded. (Optional) This field is only displayed when ‘Display Accrual During AP Entry’ is enabled in System Preferences.
End date of service	The end date of the service period being credited or refunded. (Optional) This field is only displayed when ‘Display Accrual During AP Entry’ is enabled in System Preferences.

Entry by Item

Column	Description
Item	The item on the credit memo. As text is entered, the list filters to items containing the entered characters. AP Entry Users can select 'Missing Item' from this selector if the item is not set up in R365. Once saved, a 'Missing Items' tab will appear where the missing item can be reviewed and assigned at a later time. Learn more information about Missing Items.
Vendor item	The vendor-specific item name. This field auto-populates based on the item setup.
U of M	The unit of measure for the item. This field auto-populates based on the item setup.
Quantity	The quantity being credited.
Each amount	The unit amount for the item. This field auto-populates based on the item setup.
Total	The calculated total for the line (Quantity × Each amount).
Account	The GL account associated with the item. This field auto-populates based on the item setup.
Location	The location receiving the credit memo. This defaults to the location selected in the header and updates automatically if the header location changes.
Start date of service	The start date of the service period being credited. (Optional) This field is only displayed when ‘Display Accrual During AP Entry’ is enabled in System Preferences.
End date of service	The end date of the service period being credited. (Optional) This field is only displayed when ‘Display Accrual During AP Entry’ is enabled in System Preferences.

Edit an Approved AP Credit Memo

Users with the 'Unapprove AP' Secondary Security Role will have the ability to edit an Approved Credit Memo without the need to Unapprove first.

Click the Edit button above the Details grid, make any necessary updates, and then click Edit Complete to save the changes made.

Dates of Service

Dates of Service allow a User to record expenses and credits in the right period even though the Dates of Service may expand over multiple months. When enabled, additional fields are added to AP Invoices and AP credit memos to record the dates of service.

Enable Dates of Service

Navigate to System Preferences.
1. Open the Admin application.
2. Expand the System Category.
3. Select System Preferences.
Click Miscellaneous to open the tab.
Select Display Accrual During AP Entry.

Dates that are added into an AP Credit Memo can be viewed in the Transaction Details list or in the AP Accrual report.

Applying Credit Memo to Open AP Invoices

Before Approving the Credit Memo, the User has the option of Applying the Credit Memo to an Open AP Invoice on the 'Apply' tab. All Open AP Transactions for the selected Vendor will be displayed here.

Check the box on the AP Invoice line in the 'Apply column to apply the Credit Memo to the specified invoice. If the desired checkbox appears grayed out, it is due to the AP Invoice being partially applied to the Credit Memo prior to the invoice being placed on hold. Click here to learn more about Payment Holds.

Now that the Credit Memo has been applied, it is ready to be saved and approved.