Creating a Debit Memo for an A/P Transaction

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:

Open the Purchase Order Receiving form.
Find the PO number.
To add the PO line item, click Add.

The system launches the Add Receiving Line form.
Select DR Return.
Specify a positive quantity in the Receive Qty field.
Leave the Reject Qty field at 0 (zero).
Select a reason code.
To add the line item, click Add and then click OK.

You are returned to the Purchase Order Receiving form.
Select the line item you added and then, to receive it, click Receive.
These journal entries are created:
- Inventory: CR
- Vou/Pay: DR
Open the Generate AP Transactions form.

The transaction is an adjustment.
Select the correct voucher number to create the debit memo.

The adjustment is then posted to the A/P Vouchers and Adjustments form.
Click Generate.
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:
- Vou/Pay: CR
- A/P: DR
The debit shows 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.

Note: 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 back to a voucher, but a voucher cannot be tied back to another voucher (regardless if one is negative).