CNA L&P - Credit Memos: How to Enter Vendor Credit Memos

Connect Now Accounting can handle Vendor Credit Memos. Please follow the steps listed below to correctly record and use the credit.

  • Under the Create Bills screen in Ledgers and Payables, create a new bill for that vendor
  • In the line item grid, enter the proper expense account, and in the amount field enter the full credit amount of the credit memo (amount must be negative)

  • Enter any other pertinent information regarding the credit memo
  • Submit the Credit Memo

Apply the Credit Memo:
In order to use the credit memo to reduce the amount of the next bill from that vendor, please follow the steps listed below:

  • When printing checks, select all bills for the vendor as well as the the "credit" bill you created in the steps listed above. Since the bill was a negative amount, it will reduce the total amount of the check by the full amount of the credit memo.
  • If you wanted to only take a portion of the credit memo,
    • Click the checkbox to the right of the Credit Bill and click on the Edit button.
    • In the Pay Amount field, enter the (negative) amount you wish to apply, then click the save button. Note: that the Pay Amount for this Credit must be negative.
  • After printing the check, Connect Now Accounting will remember how much of the credit you have left and it will make that amount available for the next check run.

Note: ConnectNow Accounting does not allow printing negative checks.  So, if the credit is greater than the total owed this vendor, you must wait to apply the credit until the amount owed is greater than the credit, or, you will have to handle this credit in a different way.

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