What to do with a credit memo when the original invoice was short paid.

Learn how to efficiently manage invoices, handle credit memos, and ensure accurate payments with our step-by-step guide.

25 Apr 2025 By Rose Gomez

In this guide, we'll learn how to manage and reconcile a credit memo with an original invoice. This process involves verifying payment details, ensuring price accuracy, and addressing any discrepancies such as short payments. We'll also cover how to properly index and attach the credit memo to the corresponding invoice number for future reference.

Let's get started

We have a Ferguson credit memo. Let's see if we paid the original.

Step #1: Double-click on "Payable Invoices /" — Double-click on "Payable Invoices /"

I will search for this invoice number.

Step #2: Click on the search box, and search by invoice number — Click on the search box, and search by invoice number

Step #3: The original invoice number is found in the body of the Credit Memo : 3496185" — The original invoice number is found in the body of the Credit Memo : 3496185"

Type "3496185 + Enter"

We paid, but we need to check the attachment because the prices do not match.

Step #6: Click here to view attachments — Click here to view attachments

Step #7: Double-click on the link to view documents saved in Sage Paperless — Double-click on the link to view documents saved in Sage Paperless

Step #9: All related attachments are shown, click on the AP Invoice to view the paid invoice — All related attachments are shown, click on the AP Invoice to view the paid invoice

I paid a smaller amount.

Step #10: See that I short paid the original invoice and left notes in red. — See that I short paid the original invoice and left notes in red.

We can see that the credit memo was issued in the same amount that the invoice was short paid. We do not want to take this credit, or we would be taking the deduction twice.

Step #12: We want to index the credit memo along with the original short paid invoice. — We want to index the credit memo along with the original short paid invoice.

Step #13: Copy and paste (or type) the original invoice number into the Indexer — Copy and paste (or type) the original invoice number into the Indexer

We will copy this invoice number.

Step #14: Drag "3496185" — Drag "3496185"

Type "Ctrl + C"

We will index this credit memo under the invoice number.

Step #17: Replace the CM522147 with the original invoice number 3496185 — Replace the CM522147 with the original invoice number 3496185

We will paste the number here. This way, if we ever need to look up the invoice, we can easily find the credit given to us.

Type "Ctrl + V"

Type "Enter"

Step #22: Click on "+ Index" — Click on "+ Index"