AP Credit Memo Overview

The AP Credit Memo record documents a vendor credit for a returned item, an overcharge, or another adjustment against amounts owed to a vendor. The same record is used in both the Accounting and Inventory apps, so credit memos entered or reviewed in either app work from the same set of fields, tabs, and actions.

The fields, tabs, and actions available are determined by accounting/inventory access, user permissions, and vendor setup.

An AP Credit Memo can be created, edited, applied to an AP Invoice, reviewed and approved, or deleted, depending on the app and permissions of the user working with it. For a full description of the fields, tabs, and actions available on the record, see AP Credit Memo Form Details. To perform a specific task, see Create a Credit Memo, Edit a Credit Memo, Delete a Credit Memo, Review and Approve a Credit Memo, or Duplicate an AP Invoice or Credit Memo. A credit memo can also be voided and unvoided in the Accounting app (see Void a Transaction) or completed and unlocked in the Inventory app (see Complete a Transaction).

Before entering credit memos, confirm the associated vendor record's Entry setting (By Item or By Account) and 1099 configuration, since these determine which fields and line item columns appear on the credit memo. Vendors with a contracted item price can also be configured to trigger a price variance alert on the credit memo. See Vendor Contract Price Verification.

Navigation Steps - Inventory

Open the Inventory app.
Select Invoices.
To open a new invoice, click Create and select Credit Memo.
OR
To open an existing Invoice, click an AP credit memo from the grid.

Navigation Steps - Accounting AP Transactions

Open the Accounting app.
Expand Accounts payable.
Select AP Transactions (New).
To open a new invoice, click Create and select AP credit memo.
OR
To open an existing invoice, click an AP credit memo from the grid.

Navigation Steps - Accounting All Transactions

Open the Accounting app.
Expand Transactions.
Select All Transactions.
To open an existing invoice, click an AP Credit Memo from the grid.
AP Credit Memos cannot be created directly from this page. However, they can be created using the Create button at the top of the screen.

AP Credit Memo Form

The AP Credit Memo form contains the general information, line items, and application details for a single vendor credit.

On the AP Credit Memo record, users can:

Create a Credit Memo
Edit a Credit Memo
Delete a Credit Memo
Review and Approve a Credit Memo
Duplicate an AP Invoice or Credit Memo
Void and unvoid a credit memo (Accounting app) — see Void a Transaction
Complete and unlock a credit memo (Inventory app) — see Complete a Transaction
Spread a credit memo across multiple future dates or locations (Accounting app) — see AP Credit Memo Form Details

Feature Setup

Vendor Configuration

The vendor record's Entry setting and 1099 configuration determine which fields and line item columns appear on the AP Credit Memo. Access vendor records from the Vendors page. Accounting → Accounts payable → Vendors

Vendor Contract Pricing

Vendors with a contracted item price can be configured to trigger a price variance alert on the credit memo when a line item falls outside the acceptable variance. This is set on the vendor item record. See Vendor Contract Price Verification for setup steps.

Permissions

Accounting-permissioned users, Inventory-permissioned users, and users with both permission sets each see a different combination of fields, tabs, and actions on the same form. See AP Credit Memo Form Details for field details.

AP credit memo full permissions list

Accounting:

Accounts Payable →
- AP Credit Memos
  - View AP Credit Memos Within Accounting
  - Edit AP Credit Memos
    - Edit Non-EDI AP Credit Memos
    - Edit EDI Credit Memos
  - Create AP Credit Memos
  - Assign Missing Items
  - Approve AP Credit Memos
  - Unapprove AP Credit Memos
  - Void AP Credit Memos
  - Unvoid AP Credit Memos
  - Delete AP Credit Memos
    - Delete Non-EDI AP Credit Memos
    - Delete EDI Credit Memos

Inventory:

Food →
- AP Credit Memos
  - View AP Credit Memos Within Food
  - Edit AP Credit Memos
    - Edit Non-EDI AP Credit Memos
    - Edit EDI Credit Memos
  - Create AP Credit Memos
  - Assign Missing Items
  - Complete AP Credit Memos
  - Unlock AP Credit Memos
  - Approve AP Credit Memos
  - Unapprove AP Credit Memos
  - Delete AP Credit Memos
    - Delete Non-EDI AP Credit Memos
    - Delete EDI Credit Memos

These permissions can be added to custom user roles or individual users. The Permission Access report can be used to determine which user roles or users already have these permissions assigned. For more information, see User Setup and Security.