AR Invoice Correction: To Create a Credit Memo

The following activity will walk you through the process of creating a credit memo and applying it to an invoice.

Video Tutorial

This video shows you the common process but may contain less detail than the activity has. If you want to repeat the activity on your own or you are preparing to take the certification exam, we recommend that you follow the instructions in the steps of the activity.

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Story

Suppose that on January 16, 2024, the SweetLife Fruits & Jams company sold five days of online training to one of its customers, GoodFood One Restaurant, in the amount of $225. An AR clerk created an invoice for five days of training for GoodFood One Restaurant. The actual number of training days turned out to be four, and now SweetLife needs to reduce the customer balance of GoodFood One Restaurant by $45.

Acting as a SweetLife accountant, you have to create a credit memo and apply it to the open invoice to reduce the customer balance by $45.

Configuration Overview

For the purposes of this activity, the following features have been enabled on the Enable/Disable Features (CS100000) form:

• Standard Financials, which provides the standard financial functionality
• Multibranch Support, which supports multiple branches in your instance of MYOB Acumatica
• Multicompany Support, which supports multiple companies within one tenant

On the Accounts Receivable Preferences (AR101000) form, the Hold Documents on Entry check box has been selected in the Data Entry Settings section.

On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been configured.

Process Overview

You will create and release a credit memo on the Invoices and Memos (AR301000) form and apply it to an open invoice on the Payments and Applications (AR302000) form.

System Preparation

To prepare the system, do the following:

1. Launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded. To sign in as an accountant, use the following credentials:
   • Username: johnson
   • Password: 123
2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 1/30/2024. If a different date is displayed, click the Business Date menu button and select 1/30/2024. For simplicity, in this activity, you will create and process all documents in the system on this business date.
3. On the Company and Branch Selection menu, also on the top pane of the MYOB Acumatica screen, make sure that the SweetLife Head Office and Wholesale Center branch is selected. If it is not selected, click the Company and Branch Selection menu to view the list of branches that you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Creating and Releasing a Credit Memo

To create and release a credit memo, do the following:

1. Open the Invoices and Memos (AR301000) form.
   Tip:

   To open the form for creating a new record, type the form ID in the Search box, and on the Search form, point at the form title and click New right of the title.
2. Click Add New Record on the form toolbar, and specify the following settings in the Summary area:
   • Type: Credit Memo
   • Customer: GOODFOOD
   • Date: 1/30/2024 (the current business date, which is inserted by default)
   • Post Period: 01-2024
   • Description: Service undelivered by invoice 000076
3. On the Details tab, click Add Row and specify the following settings for the added row:
   • Branch: HEADOFFICE (inserted by default)
   • Transaction Descr.: Service undelivered by invoice 000076
   • Ext. Price: 45
4. Click Remove Hold on the form toolbar.
5. Click Release on the form toolbar to release the credit memo.

Step 2: Applying the Credit Memo to the Invoice

To apply the credit memo to the invoice, do the following:

1. While you are still on the Invoices and Memos (AR301000) form, on the form toolbar click Apply.

   The system navigates to the Payments and Applications (AR302000) form, where it opens the payment document with the Credit Memo type.

2. In the Application Date box, make sure that 1/30/2024 is displayed, and in the Application Period box, make sure that 01-2024 is selected.
3. On the Documents to Apply tab, click Add Row, and in the Reference Nbr. column of the row, select 000076.
4. In the Amount Paid column, leave the value of 45.
5. On the form toolbar, click Release to release the credit memo's application to the invoice.
6. On the Application History tab, make sure that a row containing the invoice has appeared, as shown in the following screenshot.