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Program Description:
This program is used to enter A/P credit memos.
Program Explanation:
A credit memo is a credit towards a vendor's account (Credit A/P). It the system it is treated pretty
much like an invoice. The major difference is that the cost doesn't have to be assigned to a tour.
Credit memos are used to increase the amount owed to a vendor. For example, a check is destroyed
in transit. Enter a credit memo and re-enter the payment.
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Program Operation:
To change an existing credit memo, just type in the number, otherwise enter zero, and a new number
will be assigned.
First, enter the vendor number that the credit will be applied toward. Then enter the tour number if
this cost can be assigned to a tour.
Next, enter a short description of the credit, and the credit amount. The credit amount immediatedly
is added to the vendor's open balance. It is also selected for full payment.
Next, enter the G/L account that this cost will be charged to (debited). This defaults to the G/L
account in the vendor record. Then enter the A/P account the credit will be applied to. This default
to the non-tour G/L acct.
This program can also be used to adjust or delete a credit memo. The memo can't be adjusted or
deleted after the G/L update has been done.
The credit memo is posted to the G/L on the entry date. If an accrual has to be done, it must be done
in the G/L system. The amount is converted to US Dollars at the current rate and is treated the same
as an invoice when payment is made.
Note: Internally, a credit memo is treated as an invoice. To clear the credit memo from the vendor's account,
just include it in a check request or distribute a prepayment to it.
A G/L transaction is created for credit memos. For example:
1/1/86 Printing Expense 1200.00
Accounts Payable - Non - Tour 1200.00
(Printed 1500 brochures)
Remember: A Credit memo is usually in the form of a DEBIT memo from a vendor. Just remember, for a credit memo, the vendor is owed the amount of the credit.