A credit memo processed at the vendor level requires processing on the
Miscellaneous line. Accounting must be added to the Miscellaneous line during processing
When a credit memo is processed at the level of payment request or purchase order and
the purchase order has been closed, you may reopen the purchase order.
Modification of remit addresses is permitted for a credit memo
referencing a PO or a vendor. The address lookup functionality is used to modify the remit address.
You may process a credit memo only on items
that have an invoiced open quantity or—for non-quantity items—invoiced dollar amounts remaining.
After being approved by AP, accounts cannot be changed on a credit memo.
The system re-encumbers amounts associated with each line item on a credit memo. The
Amount encumbered follows the rules of PO encumbrance (CM Quantity x PO Unit Cost), which is similar to the payment request disencumbrance that utilizes the PO unit
cost rather than the PREQ unit
cost if the two unit costs are different.
Accounts encumbered are the accounts on the original PO, with the account distribution in proportion to the distribution on the PO if more than one account is involved per line item. PO
open quantities are incremented by the line item quantity on a credit memo.
Credit entry: The accounts (full accounting string) on the vendor credit memo are credited in the G/L at the time of AP submit.
The G/L entry is made in summary for each accounting string. (So, for example, if three line items on a CM use the same accounting string, only one expense
credit entry—not three—is created in the G/L for that accounting string.)
After being canceled, the G/L entries of the credit memo are reversed, any encumbrance created from AP approval of the credit memo are
reversed, and any PO open quantities that were incremented from the creation of
the credit memo are decreased.
The following rules apply for allowable accounts to be charged on a credit memo. The
specific codes for these rules may be specified via parameters:
Only object codes with an expense object type (EE, ES or EX) or with asset type AS (only the level of inventory—INV—is allowed for object code type AS). Parameter defined.
Object codes in the consolidations of compensation (CMPN), financial aid (SCHL), reserves
(RSRX), and assessments expenditures (ASEX) are not
allowed. Parameter defined.
Object codes in the levels of depreciation (DEPR), indirect cost expense (ICOE), valuations and adjustments (VADJ), and taxes (TAX) are not
allowed. Parameter defined.
Expired or closed account warnings are provided to the user as specified according to a parameter. The accounting line shows current accounts
being used. Refer to either the notes or the original PO to see the original accounts. (Whether the warning shows to an AP user is controlled by the
A credit memo may be canceled or placed on hold at
any time prior to extraction.
When a credit memo is in 'AP-Processed' status,
it is eligible to be extracted to PDP for
disbursement. Fiscal officer routing
is not a prerequisite to disbursement.
The system groups all PREQs and CMs eligible for extract for disbursement as a
positive payment based on vendor and processing campus.
These campus-specific bundling rules are established by your institution in
Only AP users may modify a CM's check stub notes after AP submit and before extract.