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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.