Creating a Debit Memo in A/P

Debit memos for A/P transactions that originated in purchasing must be made in purchasing. So, if you currently have a voucher in A/P Posted Transactions, follow these steps:

  1. Open the Purchase Order Receiving form.
  2. Find the PO number.
  3. To add the PO line item, click Add. The system displays the Add Receiving Line form.
  4. Select the DR Return check box.
  5. Enter a positive quantity in the Receive Qty field.
  6. Leave the Reject Qty field at 0 (zero).
  7. Select a Reason Code.
  8. To add the line item, click Add and then click OK. The system returns you to the Purchase Order Receiving form.
  9. Select the line item you added and then, to receive it, click Receive.

    These journal entries are created:

    • Inventory (Credit)
    • Voucher/Payment (Debit)
  10. Open the Generate AP Transactions form. The transaction is an adjustment.
  11. Select the correct voucher number to create the debit memo. The adjustment is then posted to A/P Vouchers and Adjustments.
  12. Click Generate.
  13. Open the A/P Vouchers and Adjustments form and post the negative adjustment to the A/P Ledger Distribution Journal.

    These journal entries are created:

    • Voucher/Payment (Credit)
    • A/P (Debit)
  14. The debit will show as an adjustment on the A/P Posted Transactions Detail form. You can then match the Vouchers Payable Report to the General Ledger Vouchers Payable Account.
    Caution:  Never enter a negative voucher on the A/P Vouchers and Adjustments form to create a debit memo for Accounts Payable. A debit memo can be tied by the system back to a voucher, but a voucher cannot be tied back to another voucher (regardless if one is negative).
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