Project Invoice Correction: Credit Memos for Projects

To correct the actual amounts of a project that has been overcharged during the previous billing, you can create a credit memo for a project, either manually or during the project billing procedure.

Project Billing with Credit Memo

If on the Summary tab of the Projects form, the Create Pro Forma Invoice on Billing check box is selected for the project, the system creates a credit memo on release of the pro forma invoice if the total amount of the pro forma invoice is negative.

During the billing of each processed project, the system creates a credit memo on the Invoices and Memos (AR301000) form if both of the following conditions are met for the project on the Projects form:

• On the Summary tab, the Create Pro Forma Invoice on Billing check box is cleared.
• The project has a negative Pending Invoice Amount Total on the Revenue Budget tab.

Credit Terms in Credit Memos

The system fills in the credit terms for the credit memo as follows:

• If the project has credit terms specified in the Terms box on the Summary tab of the Projects form and the Use Credit Terms in Credit Memos check box is selected on the Accounts Receivable Preferences (AR101000) form, the terms are copied from the project to the credit memo.
• If the Terms box is empty for the project and the Use Credit Terms in Credit Memos check box is selected on the Accounts Receivable Preferences form, the terms are copied from the customer's settings to the credit memo.
• If the Use Credit Terms in Credit Memos check box is cleared on the Accounts Receivable Preferences form, the Terms box of the Invoices and Memos form is empty for the credit memo.

For details on the calculation of cash discounts in the generated documents, see Setup and Calculation of Cash Discounts.