Credit Memos and Discounts Glossary

Credit Memos and Discounts

Credit Memo

A credit memo is a credit amount that is not tied to a specific invoice at the time the credit amount is entered. The system will allocate the credit amount on a percentage basis. Manual allocation is not allowed. Credit amounts can be refunded.

Discounts

A discount is a credit amount that is tied to a specific invoice. A discount affects the invoice total. It cannot be applied to a different invoice.

Write-off

A write-off is not the same as a discount or credit memo. Do not use a write-off instead of a discount or credit memo to record a discount, a credit on an invoice, or a credit memo, a credit to an account.

Caselle 2.x Users

Discounts in the Caselle Connect Accounts Payable program replaces category codes for both Credit Memos and Unapplied Payments.

What happens when I void an invoice?

Use the Void Invoice routine to create a credit memo and credit memo applied records to reverse the selected invoice. The transaction description states, Void invoice XXXXX. Only unpaid invoices may be voided.

What happens when I adjust a payment?

Use the Adjust Payments routine to reverse the entire payment and payment applied records, and then create a new payment and payment-applied records for the new adjustment.