Business Rules

      If the vendor number and credit memo number match those of a CM previously processed, a warning notifies you of the potential duplicate. You may override the warning and continue.

      If the credit memo amount and credit memo date match those of a CM previously processed, a warning notifies you of the potential duplicate. You may override the warning and continue.

      A credit memo may be processed against a payment request, a purchase order, or a vendor, but only one of the three.

      A credit memo processed at the vendor level requires processing on the Miscellaneous line. Accounting must be added to the Miscellaneous line during processing

      When a credit memo is processed at the level of payment request or purchase order and the purchase order has been closed, the system automatically reopens the purchase order..

      Modification of remit addresses is permitted for a credit memo referencing a PO or a vendor. The address lookup functionality is used to modify the remit address.

      You may process a credit memo only on items that have an invoiced open quantity or—for non-quantity items—invoiced dollar amounts remaining.

      After being approved by AP, accounts cannot be changed on a credit memo.

      The system re-encumbers amounts associated with each line item on a credit memo. The Amount encumbered follows the rules of PO encumbrance (CM Quantity x PO Unit Cost), which is similar to the payment request disencumbrance that utilizes the PO unit cost rather than the PREQ unit cost if the two unit costs are different.

      Accounts encumbered are the accounts on the original PO, with the account distribution in proportion to the distribution on the PO if more than one account is involved per line item. PO open quantities are incremented by the line item quantity on a credit memo.

Credit entry: The accounts (full accounting string) on the vendor credit memo are credited in the G/L at the time of AP submit. The G/L entry is made in summary for each accounting string. (So, for example, if three line items on a CM use the same accounting string, only one expense credit entry—not three—is created in the G/L for that accounting string.)

Debit entry: Create one offset to object code 9041 for each account and sub-account combination on a CM.

      After being canceled, the G/L entries of the credit memo are reversed, any encumbrance created from AP approval of the credit memo are reversed, and any PO open quantities that were incremented from the creation of the credit memo are decreased.

      The following rules apply for allowable accounts to be charged on a credit memo. The specific codes for these rules may be specified via parameters.

Only object codes with an expense object type (EE, ES or EX) or with asset type AS (only the level of inventory—INV—is allowed for object code type AS). Parameter defined.

Object codes in the consolidations of compensation (CMPN), financial aid (SCHL), reserves (RSRX), and assessments expenditures (ASEX) are not allowed. Parameter defined.

Object codes in the levels of depreciation (DEPR), indirect cost expense (ICOE), valuations and adjustments (VADJ), and taxes (TAX) are not allowed. Parameter defined.

      Based on the setting of the SHOW_CONTINUATION_ACCOUNT_WARNING_AP_USERS_IND parameter, AP users are warned when one or more expired or closed accounts on a CM are replaced by a continuation account. When the parameter value is Y, a warning is presented. When an expired account is replaced by a continuation account, the accounting line shows the current accounts being used and includes a note indicating that the expired/closed account has been added to the CM. Users can refer to either the notes or the original PO to see the original accounts.

      FYI notification on a credit memo routes to the fiscal officer or CM delegate per the account number(s) on the credit memo.

      A credit memo may be canceled or placed on hold at any time prior to extraction.

      When a credit memo is in 'AP-Processed' status, it is eligible to be extracted to PDP for disbursement. Fiscal officer routing is not a prerequisite to disbursement.

      The system groups all PREQs and CMs eligible for extract for disbursement as a positive payment based on vendor and processing campus. These campus-specific bundling rules are established by your institution in system parameters.

      Only AP users may modify a CM's check stub notes after AP submit and before extract.

      Credit memo searches are available to all users.