Revised:  10/07/2024

Creating Debit and Credit Memos

ReferencesReferences

Overview

This is a 2-step process (create a maintenance items worksheet to offset the item)

• Credit and debit memos are used to correct the customer balance that have already posted.
• After posting, the items themselves may not be used to make corrections.
• An item cannot be unposted if a payment has been applied to that item or if the payment was received in a prior year. The payment must be unposted before the item can be unposted.

A debit memo is used increase the balance of the customer for a correction.

A credit memo is used to decrease the balance of the customer for a correction.

Credit memos are used when an item was posted outside of the current Fiscal Year.

Credit memos are used when there are multiple items in a group. This can occur for payments in prior or the current  fiscal year.

Steps

• https://ohid.ohio.gov/wps/myportal/gov/myohio/ > Financials > NavBar > Menu > Accounts Receivable > Pending Items > Online Items > Online Item Group Entry

1. Click the Add New Value tab.

• The Add New Value tab displays.

2. Verify that the Group Unit listed is the one that will "own" the credit or debit.
3. Keep the default ID of NEXT unless the agency has a special numbering scheme.
4. Click Add.

• The Group Control tab displays.

5. Enter "B" (Billing) in the Group Type field.
6. Enter " OBILL" (Online Billing) in the Origin ID field.

• Records created by the Billing module process have a value of XBILL.

7. Enter "USD" (US Dollars) in the Control field in the Currency section.
   • USD is not listed at the group header level, enter the Control Currency for each line item.
8. Enter the batch total from the batch tape in the Control field in the Control Totals sections.
9. Enter the number of items in the batch in the Count field.
10. Click the Pending Item 1 tab, or the Pending Item 1 link at the bottom of the page.

• The Pending Item 1 tab displays.

11. Enter the original Item ID followed by a " DR" (Debit) or " CR" (Credit) in the Item ID field.
12. Enter the Customer ID in the Customer field.

13. Enter the amount of the debit or credit in the Amount field.  

14. Click the Entry Type dropdown list and select the appropriate Entry Type. These Entry Types are:

15. • CR - Third-party credit memo

    • DR - Third-party debit memo

    • ISTCR - Interagency credit memo

    • ISTDR - Interagency debit memo

15.  Use the Look Up Reason icon next to the Reason field to select a reason for the line item.

    • Reason Codes vary by Entry Type and are “shortcuts” for ChartFields distribution strings.

16. Click the Add a New Row icon to add a second item.
17. Repeat the instructions above to enter another credit or debit. Create items of the total number and dollar amount listed on the Group Control tab.
18. When creating ISTVs, it's important to enter the correct location on the Pending Item 2 tab.

18. If entering an ISTV, click the Pending Item 2 tab.

• The Pending Item 2 tab displays.

19. Enter the location in the location field.

20. Click the Group Action tab. This tab is used to create the accounting entries and to set the group posting action.

• The Group Action tab displays.

21. Click Create Entries .

• OAKS FIN displays the ChartField string on the Accounting Entries page when the accounting entries are created.

• The Reason Code selected on the Pending Item 1 tab helps OAKS FIN fill in the ChartFields string. Agencies that use generic Reason Codes must complete fields with variable information. Reason codes may also change and, occasionally, may contain errors that have not yet been corrected. Update Reason Codes when necessary.

• Refer to ChartField Characteristics to review available ChartFields strings.

• OAKS FIN creates both revenue and receivable accounting entry lines. When OAKS FIN processes this information, the second line inherits (copies) information from the top line to complete the ChartField entries.

22. Review the ChartFields for accuracy, focusing on the Fund , Account , and Dept fields.

23. At the change of the federal fiscal year, pay attention to the Grant/ Prj field, since items may be processed for both new and old grants. Update Reason Codes when necessary.

• There are two lines for each entry, debiting one fund and crediting another. The lower bar reflects these two entries; the bar above it displays the number of entries.

23. Correct the ChartFields by either manually correcting the codes, or returning to the Pending Item 1 tab and selecting a different Reason code.

    1. If the second method is chosen, click the Group Action tab.

    • The Group Action tab displays.

24. 2. Click Delete Entries .

    3. Click Create Entries to create the entries again.

25. Click the Action dropdown arrow and select Batch Standard .

26. Once saved, this will make the group available for posting when the ARUPDATE batch process runs.

25. Click OK.

• The posting action is set.

26. Click Save.

• The group and its posting information are saved to OAKS FIN.
• Once ARUPDATE runs, OAKS FIN will post the credit and debit memos to the customer account.
• Refer to Reviewing Customer Item Activity to review the customer's item activity and the effect of credit and debit memos.
• Refer to Creating Maintenance Items Worksheets in order to offset the items.