Revised:  02/08/2023

Processing a Credit

Overview

Agencies may accrue credits or funds due back from a supplier. A credit may be received by the agency from a supplier in a variety of formats such as a negative invoice, a reduction on a current invoice due, or correspondence indicating a credit balance. Credits may not be processed by simply eliminating or reducing the amount due on subsequent invoices received for payment from the supplier. This dilutes the actual payment transaction information and eliminates transparency of credits received.

Answer the following questions for guidance on how to handle the credit.

Is the credit from a utility?

Yes      No

Do you want a refund or don't expect to receive another invoice?

Yes      No

Is the credit included in a current invoice or was it sent alone?

The credit is included in a current  invoice           The credit was sent alone

Research the original voucher to obtain the voucher ID and Invoice Number.

• Refer to the Inquiring on Vouchers topic for guidance,

Did the original voucher reference a PO?

Yes      No

Create a negative voucher using the same coding and add a comment.

• It is recommended to attach the original invoice.

  • Refer to the Creating a Non-PO topic for guidance with the following exceptions

• Enter a negative amount for the Invoice Total.

• Enter a Payment Message to ensure your supplier applies the credit correctly.

Is the PO or PO line closed or exhausted?

Yes      No

Create a negative voucher using the same PO and add a comment.

• It is recommended to attach the original invoice.

• • Refer to the Creating a PO topic for guidance with the following exceptions

• Enter the amount of the credit as a negative amount in the Invoice Total.
• Enter a Payment Message to ensure your supplier applies the credit correctly.

Create a negative voucher using the same coding and add a comment.

• It is recommended to attach the original invoice.

• • Refer to the Creating a Non-PO topic for guidance with the following exceptions

• Enter a negative amount for the Invoice Total.
• Enter a Payment Message to ensure your supplier applies the credit correctly.

Research the original voucher to obtain the voucher ID and Invoice Number.

• Refer to the Inquiring on Vouchers topic for guidance.

Did the original voucher reference a PO?

Yes      No

Does the new invoice reference a PO?

Yes      No

Create a debit voucher for the new invoice and add a negative voucher line with the original debit coding.

• • Refer to the Creating a Non-PO topic for guidance with the following exceptions
• Add another Invoice Line by clicking the + icon.
• Follow the steps on Creating a Non-PO voucher for the credit.
• Enter a negative amount in the Unit Price for the credit.

• Enter a Payment Message to ensure your supplier applies the credit correctly.

Create an voucher referencing the PO for the new invoice and add a negative voucher line with the original debit coding.

• • Refer to the Creating a PO topic for guidance with the following exceptions

• Add another Invoice Line by clicking the + icon.
• Follow the steps on Creating a Non-PO voucher for the credit.
• Enter a negative amount in the Unit Price for the credit.

• Enter a Payment Message to ensure your supplier applies the credit correctly.

Is it open?

Yes      No

Does the new invoice reference a PO?

Yes      No

Create a debit voucher and add a negative voucher line with the original debit coding.

• • Refer to the Creating a Non-PO topic for guidance with the following exceptions

• On Distribution Lines click the + icon.
• Enter the credit as a negative amount in the Merchandise Amt.

• Enter a Payment Message to ensure your supplier applies the credit correctly.

Add the current PO to the voucher and add a negative voucher line with the original debit coding.

• • Refer to the Creating a PO topic for guidance with the following exceptions

• On the Invoice Lines click the + icon
• Follow the steps for Creating a Non-PO Voucher for the credit.
• Enter the credit as a negative amount in the Unit Price.

• Enter a Payment Message to ensure your supplier applies the credit correctly.

Is it the same PO as the current payment?

Yes      No

Reference the PO for the current charge and add a negative line for the credit against the original PO.

• • Refer to the Creating a PO topic for guidance with the following exceptions

• On Invoice Lines click the + icon to add a PO for the credit.
• Reference the PO for the credit.
• Enter the credit as a negative amount in the Unit Price.

• Enter a Payment Message to ensure your supplier applies the credit correctly.

Add the amount for the current charges and a negative line for the credit against the same PO.

• • Refer to the Creating a PO topic for guidance with the following exceptions .

• Add a new line in the Distribution Lines by clicking the + icon.
• Enter the amount of the credit as a negative amount in the Merchandise Amt.
• Enter a Payment Message to ensure your supplier applies the credit correctly.

Create an AR open item and bill the supplier.

• Refer to the Entering a Regular Deposit topic.

Pay the current balance due.

• Refer to the Voucher topic

or contact the Utility Company to request a refund.