PSA L&P - Bills: How to record and apply vendor credit memos

How to record and apply vendor credit memos

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How to record the credit memo

  1. Under the Create Bills screen in Ledgers and Payables, create a new bill for that vendor
  2. 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)
    Note: you may want to wait to do this until right before this credit will be used. This will prevent negative bills from showing on reports, etc.

  3. Enter any other pertinent information regarding the credit memo
  4. Submit the Credit Memo



How to 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:

Note: this will not work if the Vendor is set to print separate checks for each bill because it will attempt to create a negative check which is not allowed. You must change this option in Ledger and Payables → Vendors → pull up the Vendor → 1099/Checks.


  1. When printing checks, select all bills for the vendor as well as the "credit" bill you created in the steps listed above. Since the credit bill was a negative amount, it will reduce the total amount of the check by the full amount of the credit memo.
  2. If you wanted to only take a portion of the credit memo
  • Click the Bill number (for the Credit) on the left of the checks screen to pull up the Credit Memo Bill.
    • Change the line items so that at least one line item equals the amount of the credit you wish to apply and at least 1 other line item equals the balance of the credit.
  • Click the Checks Icon again. Do not use the Back arrow on your browser.
  • Click the checkbox to the right of the Credit Bill and click on the Edit button.
  • Mark the line item that matches the credit amount you wish to apply and make sure the other line item(s) is not checked.
  • If the credit bill combined with the regular bill results in a 0.00 balance, a zero check will print. We recommend printing it on plain paper and changing the check number to an alphanumerical value so you don't waste a check or get your check numbers out of sequence.
  • After printing the check, ParishSOFT Accounting will remember how much of the credit you have left and it will make that amount available for the next check run.
  • Note: ParishSOFT 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.


    How to print a zero dollar check

    Original Vendor Invoice

    Credit Memo 'Bill'

    In Checks, Mark both the Original Bill and the Credit Memo 'Bill'


    Continue the Create Checks Process

    Print the Check

    Change the check number to CMmmddyy or some other alphanumeric character which will not throw off your check number sequence and will not use the next stock check number.

    Print the Check on white paper stock and mark the check as having printed



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