12-12 Credit Memo Processing

Purpose: To apply credit memo (CM) amounts against payments on invoices.

Periodically we will receive CMs from vendors which need to be entered into Sierra.  To process a CM, follow directions for Processing Invoices with the following variations:

1.  For credit memos that are being invoiced to be applied to an actual outgoing check:

A.  You must process the credit memo in the same interface cycle along with an invoice from the same vendor that is a larger dollar amount than the credit memo.

B.  When entering the document number in the invoice field in Millennium, add the letters CM to the beginning of the number, you will still need to add the slash (/) at the end of the number.

C.  Enter all amounts with a – (negative) before it, this includes shipping charges and the final total.

D.  Fill out yellow slip as you would with regular invoices EXCEPT use a red pen and make sure to enter a – (negative) in front of the dollar amounts.

2.  For credit memos that are being invoiced for internal purposes only (i.e. as a “Z”), use steps B (remembering to add a space before Z after the slash at the end of the CM number) and C, disregard steps A and D.