Creating Credit Memos

You can apply sale credits to service invoices. From the Service Credit Memo window, you can apply credit amounts to each of the five cost categories. You can save the credit memo to a batch or real-time post.

If unposted costs exist on the service call, a new credit memo cannot be created. If a credit memo is saved to a batch for the service call, if additional costs are added, the credit memo will not automatically update. You must save the credit memo to update it or you can delete the credit memo and then invoice.

Creating a Credit Memo

1. Select Cards > Service Management > Service Manager.
2. Select a customer and select the History indicator.
3. Double-click a call.
4. Select Invoice.
5. Select Credit Memo from the drop-down list in the lower-left corner of the window. If you have costs recorded on the invoice, you must delete or post the invoice before creating a credit memo. If you delete the invoice, open the Service Invoice window by choosing the Invoice button in the Service Call window.
6. Complete the service credit memo. Enter the credit amounts in the appropriate cost categories.
7. Enter the customer ID to bill in the Bill to Customer ID field. If this credit memo is for the same customer but a different address, enter the address ID in the Bill To Address ID field.
8. Select the Distribution button to verify the posting accounts. The sales and receivables accounts established during setup are shown in the scrolling window. The fields aren't editable.

9. Select Save to save the credit memo to a batch. You can real-time post by choosing the Post button. You are prompted to print a credit memo before posting. 

   • If a credit memo is saved to a batch for the service call, when additional costs are added, the credit memo will not automatically update. You must save the credit memo to update it or you can delete the credit memo and then invoice. 

   • After posting a credit memo, the call status changes to Closed and most fields in the Service Call window and Service Credit Memo window are disabled.

10. Apply the credit memo to the appropriate service invoice by choosing Transactions > Sales > Apply Sales Documents.

You can reprint a posted credit memo by choosing the Invoice button in the Service Call window and choosing History. Double-click a credit memo to open the Posted Service Credit Memo window to view and print a posted credit memo.

To batch print credit memos, see Batch Printing Invoices and Credit Memos.

Automatically Creating Credit Memos

Service Management automatically creates a credit memo when a service invoice with a negative total is saved.
Invoices become negative when a returned inventory item is posted through Sales Order Processing, when a credit memo or return is posted in Payable Management when adding negative costs using the "+" button, when adding an inventory adjustment with a positive quantity, and when creating a negative payroll transaction through TimeTrack. See Entering Inventory Transactions using SOP, Entering Manually Added Transactions, and in the TimeTrack User Manual.

1. Select Cards > Service Management > Service Manager.
2. Select a customer and select the History indicator.
3. Double-click a call and select Invoice.
4. Select a "+" button.
5. Complete the Added Costs window. Be sure to enter a negative amount in the Billing Amount field.
6. Select Save to save the added costs or select Post to post the added costs.

7. In the Service Invoice window, select Save. If the total is negative, upon saving the service invoice, the credit memo is created. If you post the service invoice, the credit memo is created and posted. 

   
   If the negative amount is more than the invoice total, a message will display that says "Negative costs have been added. You can either create a credit memo or allow the negative amount on an invoice. Select More Info for steps to proceed." You have the option to change the invoice to a credit memo or you can keep the negative amount on the invoice.
8. After the negative service invoice is saved, select the Invoice button in the Service Call window. The Service Credit Memo window opens. If you need to add costs to the service call after the credit memo is created, delete the credit memo. Notice the negative transaction remains with the service invoice. You can then add costs to the service invoice, either from the Service Invoice window or from the Microsoft Dynamics GP modules, and save. If the new invoice total is negative, a credit memo is created. If the invoice total is positive, a service invoice is created.
9. Save or post the credit memo. To batch print credit memos, see Batch printing invoices and credit memos.

Negative Amount is More than the Invoice Total

If the negative amount is more than the invoice total, you have the option to create a credit memo or leave the negative amount on the invoice.

Change the Invoice to a Credit Memo

1. Re-open Service Invoice, clear the Batch ID field, and then select Redisplay.
2. Enter a batch ID and select Save to create the credit memo.

Keeping the Negative Amount on the Invoice

1. Re-open Service Invoice, clear the Batch ID field.
2. Close the window.
3. When prompted to save or delete the invoice, select Delete.
4. Re-open the window and the negative costs will display.