Vendor Credit Memo

Accounts Payables – Vendor Credit Memo

Credit Memo Overview

The Credit Memo screen is the third drop-down item in the Accounts Payable’s ‘Data Entry’ menu. This screen allows for the entry of credits to a Vendor e.g. when goods are returned to the Vendor.

A Vendor ID is needed for the entry of details and the rest is very similar to all vendor data entry screens. 

Things to note before entering a Credit Memo:

  • Once the credit memo has been entered the system will automatically proceed to the Allocation screen.
  • The Allocation screen enables allocation of the amount in the Credit Memo to a Vendor Invoice.
  • Note that this is the reverse of an Allocation for a Vendor.  The Credit Memo allocates an amount to Vendor Invoice which reduces the amount owing.
  • The procedure is to allocate the Vendor Credit to the Vendor Invoice first, then allocate the Vendor Payment to the Vendor Invoice.

There are five main areas of the Credit Memo screen

1. Transaction Area:

How to enter details in the Transaction area:

  1. Vendor ID – Enter the Vendor ID. 
  2. Ext Ref – External reference is an additional field to record any reference that the vendor may provide. 
  3. Credit No. – is the sequentially generated number which you can elect to have a suffix or preference specified in Master Defaults. There is also the option to over type with your unique ID code if required. 
  4. Total – Enter the Total Cost of the transaction including Tax.
  5. Date In – SapphireOne will automatically enter in today’s date.
    To select an alternative date, click on the underlined Date In for a pop-up calendar or manually type in the date. 
  6. Period – SapphireOne will automatically enter in the current Period or the Period relating to the manual Date you entered.
    • To select a different period, click on the underlined Period for a pop-up period list. 
    • Some Periods may not appear on the list as they may be locked (i.e. Transactions for the period are complete).
  7. Memo – Enter any notes to assist with inquiries in the future. i.e. Warranty claims.
  8. Document Paperclip – Scan and attach any documents relating to the Money Payment.
Click here to see how to attach documents to the transaction using the paper clip:
    • Click on the red paper clip in the top right side of the Transactions area to attach the first document. A pop up document List will be displayed.
    • From the pop up Document List select the green (+) button to add a document. Navigate to the documents location on your computer and select it by clicking on the Open button down the bottom of the screen.
    • Then click on the green tick on the main toolbar to attach the document. The paperclip will turn green indicating that there is now a document attached.
    • If  the paper clip is green document/s have already been attached to the transaction. To add more documents click on the green paperclip and follow the exact same procedure as above to attach additional document/s. Remember to save the document list each time by selecting the green tick on the main toolbar.
    • To delete a record or document, click on the Green paperclip, then select/highlight the document to be removed and select the  Minus (-) button. A pop up will ask for confirmation of the deletion. Green tick on the main toolbar out when you are done.

2. Information Tab Area

The Information Tab area is used to display extra information about the current entry. You have the ability to view the information here, not alter it.

Click on the Information Tabs to select the details you would like displayed. The Information Tabs change automatically for the different transactions being viewed. 

These tabs include:

  1. Vendor – This Tab displays details about the Vendor ie Total Due displayed by the relevant terms, Credit Remaining and Warning Message.
  2. Controls – This lists the details of when the transaction was entered, posted and by whom. This Tab also displays the total value of the allocation.
  3. Allocation – This Tab displays linked data records when there has been an allocation.
  4. G.L. – This displays the General Ledger details for the account entered in the current invoice.
  5. Project – If a project has been entered, the project details will be displayed under this tab i.e. Project Name.
  6. Transaction – This tab displays the last 20 transactions. By selecting a historical transaction and then right mouse click you can: Copy Transaction, Copy Lines, Open In Inquiry.
  7. Error Code – Normally any error information is displayed under the controls Tab. However, the information displayed there is concise and any additional information on an error in a transaction is displayed under this Error Code tab. This is especially useful when there are multiple errors within the one transaction.

3. Standing Transactions Area

Standing Transactions are used to set up recurring transactions and controls how often the record is to be created for each period.
A standing transaction is usually given a start date and a finish date.

Click here to see how to set up Standing Transactions:
  1. Scheduled – You may select Monthly, 30 Days, Fortnightly, Weekly, Yearly, Other or None. By default, the system will not set any dates. These must be entered by the user. If you select ‘Other’ you will be asked to specify the period in days.
  2. Start/Next Date – The date in field at the top is the Start date. Once you select the frequency from the Scheduled drop-down menu, the system automatically creates the next date of your scheduling. You can also manually enter in a date by clicking on the Start/Next Date.
  3. Stop Date – A pop-up calendar will appear automatically for you to enter in a Stop date as required. You can also manually enter in a date by clicking on the Stop Date.

Standing Transactions will only be created if the previous periods Standing Transactions have been posted.

If the Stop Date is set as 00/00/00 the standing transaction will continue to be automatically created by the system until the user deletes it!

4. Destination Area

Options for the saving of this Transaction:

SapphireOne checks that each transaction entry is complete and balanced before allowing any saving operation. When the Out of Balance is 0.00, the Save button, the Green Tick, will activate in the top tool bar allowing the user to save the transaction. When more than a single transaction is selected, Blue arrows will also be displayed on the main toolbar. See below for additional details.

You can save your Transaction in one of three methods:

  • Select the Green Tick when it is activated. This will save the current transaction and return the user to the main tool bar or the list.
  • When multiple transactions have been selected the user may click on the green tick on the tool bar with the results as seen as above.
  • Or
  • Click on either of the the Blue Arrows. This will tell the system to save the current transaction and open the next transaction in the list ready for data entry or modification. Also note that for what ever page is open in the transaction the system will move to the next transaction displaying the exact same page. I.e. Terms page to Terms page. Very handy when checking the same data in multiple items.
  • Selecting the Enter Key on the keypad. The system will then save the current transaction and opens another transaction of the same type ready for data entry. Very handy when entering multiple transactions of the same type. I.e. Client Receipt, Client Receipt.

5. Transaction Footer:

The Transaction Footer is the information bar along the bottom of the screen, and allows for easy checking of the critical details of a transaction.

This includes information such as:

  • Sequence – The system automatically generates a sequence number.
  • Batch – The system automatically generates the batch total. This is the total of all the client invoice that have been entered at any given time.
  • Out of Balance – The system automatically generates the Out of Balance Total. For this type of transaction the Out of Balance amount must be 0.00 to enable the saving of a record.
  • Rules Level – This is a linked field. The User can click on the Rules Level and a pop-up Organisation Chart will appear. Select the Level you would like to apply and hit OK.
  • Tag – A drop-down menu allows the User to mark this Client Memo with a  tag.
Click here to see how to Create, Delete or Manage Tags:
  • Note that a tag of HOLD is hardwired into the system. When it is selected the transaction may not be posted until the tag status of HOLD is removed or altered to something other than HOLD.
  • Many of the tag headings are user configurable. All of the items in the tag drop down lists may be created by the user.
  • To add in a new tag to the list simply type it in and move the focus away, (tab away). The system will ask if you want to add the new tag to the list.
  • To remove a tag, select it, then re-select it while holding the Control or Command key down. You will be asked if you want to remove it from the list.

How to save your Credit Memo

It is important to note that the Out of Balance must always equal to 0.00 before the transaction can be saved.

SapphireOne checks that each transaction entry is complete and balanced before allowing any saving operation. When the Out of Balance is 0.00, the Save button will activate in the top tool bar, and a Blue Arrow will also be displayed which denotes the next record.

You can save your Credit Memo by:

  • Clicking on the green tick, saving the current transaction and returns the user to the list.
  • Clicking on the blue arrow, saving the current transaction and opens up a new money payment ready for data entry.
  • Hitting the ENTER key on the keypad, saving the current transaction and returns the user to the list.

Watch how to enter a Vendor Credit Memo in SapphireOne

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