The AR Credit Memo is part of Accounts Receivable within the Accounting module of Restaurant365. They are generally used to apply to AR Invoices (cancel out the invoice) by issuing a credit to a customer.
To create a credit memo, select Customer – Credit Memo in the top main ribbon.
Fill out the required fields:
- Number – number of credit memo. This is usually an auto generated sequential number managed under Accounting – Administration – Auto Numbering in left hand navigation
Fill out other non-required fields as desired such as Comment and Address (address is entered by hitting the Change Address button and filling out the popup window).
In the Details grid section of the form, enter desired details by filling out the following fields:
- Item – select the item you want to credit
- Number – this is read only and displays Item Number from the item record selected
- Description – this defaults from the item selected but can be edited on this transaction
- Unit of Measure – this defaults from the Sales U of M on the item but can be edited
- Quantity – quantity of the item being credited
- Each Amount – defaults from the Price on the Sales tab of the item form but can be edited
- Total – calculation of Quantity * Each Amount
- Tax check box – check this box if that row is taxable and that amount will be added to taxable total for the transaction
Then click Add and that detail row will be added. Continue this process until all desired details have been added.
Populate tax fields below the details grid
- Tax Account – if there is a tax amount on the transaction, a GL entry will be added to the Distribution tab upon saving for that amount and the GL Account will be this tax account. This defaults from system Preferences but can be edited
- Tax Percent – this defaults from Location but can be edited. The tax amount is calculated as Taxable Total * Tax Percent. Taxable Total is a sum of all detail rows where Taxable check box is checked
If there’s an invoice this credit should be applied to then click the Apply tab and click the check box next to the invoice(s) you wish to apply.
Once all is complete you can save the transaction. Note that if you have applied this to invoices in the Apply tab then you must Approve instead of just saving. Hitting Approve will both save and approve the transaction at the same time.