The AR Credit Memo is part of Accounts Receivable within the Accounting module of Restaurant365. They are generally used to apply to AR Invoices (cancel out the invoice) by issuing a Credit to a Customer.
To create an AR Credit Memo, hover over the 'Customer' menu and select 'Credit Memo'. The AR Credit Memo form will load in a new tab.
The Permissions listed here are associated with AR Credit Memos. These Permissions can be added to Custom User Roles or single Users. Learn more about managing Permissions and Custom User Roles here.
AR Credit Memo Permissions are found in the Permission Tree as follows:
- Accounts Receivable
- AR Credit Memos
- View AR Credit Memos
- Edit AR Credit Memos
- Create AR Credit Memos
- Approve AR Credit Memos
- Unapprove AR Credit Memos
- Void AR Credit Memos
- Unvoid AR Credit Memos
- Delete AR Credit Memos
- AR Credit Memos
The Permission Access report can be used to determine which User Roles or Users already have these Permissions assigned.
Learn more about User Setup and Security here.
AR Credit Memo Form
1) Number - The number associated with the Credit Memo. This number will be auto-generated and can be modified on the Autonumbering page
2) Customer - The name of the Customer receiving the Credit Memo
3) Comment - An optional field to include notes about the Credit Memo
4) Date - The date this Credit Memo was created. This is auto-populated with the date this form was opened
5) Address - The address of the Customer. This will be auto-populated with the address noted on the Customer record, but it can be changed manually by clicking the 'Change Address' button next to this field
6) Location - The Location processing the Credit Memo. This will be set to the User's default Location but can be manually changed
- Note: Locations will be grayed out if they are inactivated. Click here to learn how to inactivate a Location
7) Item - The item you want to credit
8) Number - The Item Number from the item record selected. This is read-only
9) Description - The default description of the item from the Item record. This field, however, can be edited
10) Unit of Measure - The Sales U of M on the Item record. This field, however can be edited
11) Quantity - The Quantity of the item being credited
12) Each Amount - The Price on the 'Sales' tab of the Item record. This is auto-populated but can be edited
13) Total - The calculation of 'Quantity' multiplied by 'Each Amount'
14) Tax checkbox - Check this box if that row is taxable and that amount will be added to the Taxable Total for this transaction
15) Add / Clear Button - Click 'Add' to include the line information into the grid below or click 'Clear' to clear out the information entered into the row
- Note: If an item needs to be deleted after adding it into the grid, click the trash can icon at the end of the line item's row
16) Tax Account - If there is a tax amount on the transaction, a GL entry will be added to the 'Distribution' tab upon saving for that amount, and the GL Account will be this tax account. This defaults from System Preferences but can be edited
17) Tax Percent - The tax percent as noted on the Location record but can be edited.
18) Total - The tax amount is calculated as the 'Taxable Total' multiplied by the 'Tax Percent'
19) Taxable Total - The sum of all detail rows where the Taxable check box is checked
When finished, click either 'Save' or 'Approve' the transaction.
Edit an Approved AR Credit Memo
Users with the 'Approve AR Credit Memos' Permissiopn will have the ability to edit an Approved Credit Memo without the need to Unapprove first.
To do so, simply click the 'Edit' button above the Details grid, make any necessary updates, and then click 'Edit Complete' to save the changes made.
Apply an AR Credit Memo
If there's an invoice this credit should be applied to, navigate to the 'Apply' tab and click the 'Apply' checkbox next to the necessary invoice(s).
The Apply Date must be the most recent date listed on the AR Invoice form (either the Invoice Date or the Payment/Credit Memo Date) and will be automatically updated to that date when checked. In the example above, the AR Invoice that was selected had an original date of 10/2/2019, but since the date of the AR Credit Memo was 2/22/2020, the 'Apply Date' automatically updated to the most recent date listed, which was 2/22/2020.
This date can be in a closed period if a Journal Entry is not created due to a discount or an intercompany entry being made. The fiscal period status is examined for the Location on the header of the AR Invoice and the header of the Payment and/or Credit Memo. If one of the dates is in a closed period, an error message for the closed fiscal period will be displayed.
- Note: An intercompany entry will be listed when a Payment or Credit Memo is applied to an invoice from a different Legal Entity.
Once checked, 'Save and Close' the AR Credit Memo to complete the process.
- Note: If you have applied transactions to this Credit Memo in the 'Apply' tab, then you must Approve instead of just saving. Clicking 'Approve' will both Save and Approve the transaction at the same time.
Unchecking the Apply Checkbox
Unapplying the Apply Checkbox can be done easily after Unapproving the AR Credit Memo by simply re-clicking the Apply checkbox next to the currently selected payment. However, should a Journal Entry be created due to the reversal of a discount or intercompany entry, the date listed will be pulled from the below dates in the following order:
- The Apply Date if in an open period
- If the Apply Date is in a closed period, then a prompt will appearand will suggest the next available date that is in an open period to select, which will either be:
- Legal Entity Close Date - The date of the most recent closed period + 1 day from either the AR Invoice Location's Legal Entity record or the AR Payment/Credit Memo Location's Legal Entity record
- Advanced Close Date- The most recent open period date after the the most recent date listed on either the AR Invoice's Location or the AR Payment/Credit Memo's Location
- Note: If a date is selected in a closed period, you will be unable to save the resulting Journal Entry.