Memos Guide

Comprehensive guide to Credit and Debit Memo functionality.

Credit Memos

Supplier issued statement of credit to a buying organization. Typically issued against an invoice or PO.

Credit Workflow

Example: 

Requester places an order for 5 laptops -> Supplier ships the 5 laptops -> Requester submits goods receipt for 5 laptops -> AP Team pays invoice -> Requester returns 1 laptop because it is no longer needed -> Supplier issues a credit statement -> AP Processor picks up the statement of credit from the hopper and creates a credit memo against the Supplier document -> Credit Memo posts to external ERP -> ERP applies the credit to future Supplier Invoices.

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Scenarios that would require a user to create a debit memo. ‘Reasons’ as shown below are listed on the Debit Memo draft page.  

  • Returned Items
  • Rebates
  • Billing Error
  • Not Specified
  • Other

Debit Memos

In addition to credit memos, AP Processors can also create ‘Debit Memos’ within Vroozi. A Debit memo is a statement of a ‘credit’, that the buying organization creates typically against a supplier provided document. The amount in the Debit Memo indicates what the buying organization expects to receive back from the supplier. 

The same actions that can be applied to a Credit Memo can also be applied to a Debit Memo. 

Once ‘Create Memo’ has been selected from the navigation panel or Document preview screen , the memo draft can be renamed as a Debit Memo. (shown below) 

Changing the document type to Debit Memo will not change any fields on the memo draft. The only difference appears at the selecting of ‘Reason’. When Debit Memo is selected ‘Not Specified’ is no longer listed as an option as it is with a Credit Memo. Not Specified was removed based on the logic that a supplier would provide a Reason for issuing the Debit Memo.

Debit Workflow

Example: 

Requester places an order for 5 laptops -> Supplier ships the 5 laptops -> Requester submits goods receipt for 5 laptops -> AP Team pays invoice -> Requester returns 1 laptop because it is no longer needed -> AP Processor selects to Create Memo and links debit memo draft to the Invoice or PO -> Credit Memo posts to external ERP -> ERP applies the credit to future Supplier Invoices.

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Scenarios that would require a user to create a debit memo. ‘Reasons’ as shown below are listed on the Debit Memo draft page.

  • Returned Items
  • Rebates
  • Billing Error
  • Other

Download the full Credit and Debit Memo functionality guide.

 

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