Questions Entering a Vendor Credit Memo

Hi Animal,

First of all, let me explain that Acumatica's name for Credit Memo is actually Debit Adj. which is a little weird. When you go to the Bills and Adjustments (AP301000) screen, you are probably tempted to choose Credit Adj. since the piece of paper sitting in front of you says Credit Memo. But you actually need to choose Debit Adj.

I know, I know, it's weird. But I think the reasoning goes something like this: choose the option according to what you want to do to the Accounts Payable GL Account. If you want the journal entry to credit Accounts Payable, then choose Credit Adj. If you want the journal entry to debit Accounts Payable (as is the case with a Vendor Credit Memo), then you need to choose Debit Adj. This is probably logical for the Accountants out there, but might be confusing for the AP Clerks. 

Anyways, back to your question, you really have two options.

Option #1 - Reverse a Previously Entered AP Bill

If the Credit Memo from the Vendor is for the full amount of a previously entered AP Bill, then I suggest pulling up the original AP Bill and selecting ACTIONS -> Reverse

Choosing ACTIONS -> Reverse will generate a new Debit Adj. document with the same information from the original AP Bill (same descriptions, lines, GL Accounts, etc.).

In the screenshot above you can see that the Reference Nbr. field says NEW which means that nothing will happen if you navigate away from the screen or close your web browser. You need to make sure you press the Save icon if you don't want to lose the document.

If everything looks ok, you can click the RELEASE button (might need to uncheck the Hold checkbox first depending on your setup) to release the Debit Adj. and post it into the General Ledger.

Option #2 - Manually Enter the Vendor Credit Memo

If you have a Credit Memo that isn't for the full amount of a previous AP Bill (maybe it's just a random amount for any number of reasons) then you can enter it manually.

Just go to the Bills and Adjustments (AP301000) screen, set Type to Debit Adj., and then fill out all of the fields. Don't forget to release it once everything looks good.

Applying Your Debit Adj.

Regardless of which option you choose, it will generate a standalone Debit Adj.

So, if you chose Option #1, then originally you had one thing on the your AP Aged Past Due (AP631000) report which maybe looked like this:

After you create your Debit Adj. you now have two things on your AP Aged Past Due (AP631000) report like this:

That's because both documents have a Status of Open.

To clear the documents off of the report, you need to apply the Debit Adj. to the Bill.

To do that, open the Debit Adj. and  choose ACTIONS -> Pay Bill/Apply Adjustment

This will take you to the Checks and Payments (AP302000) screen. I know, the name of the screen is weird, but that's because it's the same screen for applying documents with a Type of either Check or Debit Adj. to documents with a type of Bill.

Anyways, to apply the Debit Adj. document to the Bill document, you need to click the + button on the DOCUMENTS TO APPLY tab and then populate the AP Bill in the Reference Nbr. column like this:

The Amount Paid column in the screenshot above is how much of the Debit Adj. will be applied to the Bill. If you want, you can apply a portion of a Debit Adj. to a Bill and leave the remainder open to be applied to future AP Bills.

When you are done, make sure to click the RELEASE button to release the application. If you fully applied the Debit Adj. to the Bill, then the Status will go to Closed like this:

If you only partially applied the Debit Adj. then the Status will remain Open.

If you chose Option #1 and then fully applied the Debit Adj. to the Bill, then both documents now have a Status of Closed and both documents should be gone from your AP Aged Past Due (AP631000) report like this:

Thank you for the thorough explanation.