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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.

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.

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

I will search for this invoice number.

2
Click on the search box, and search by invoice number
Step #2: Click on the search box, and search by invoice number
3
The original invoice number is found in the body of the Credit Memo : 3496185"
Step #3: The original invoice number is found in the body of the Credit Memo : 3496185"

4
Click here
Step #4: Click here
5
Type "3496185 + Enter"

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

6
Click here to view attachments
Step #6: Click here to view attachments
7
Double-click on the link to view documents saved in Sage Paperless
Step #7: Double-click on the link to view documents saved in Sage Paperless

8
Click on "☐"
Step #8: Click on "☐"
9
All related attachments are shown, click on the AP Invoice to view the paid invoice
Step #9: All related attachments are shown, click on the AP Invoice to view the paid invoice

I paid a smaller amount.

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

11
Click here
Step #11: Click here

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.

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

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

We will copy this invoice number.

14
Drag "3496185"
Step #14: Drag "3496185"
15
Type "Ctrl + C"

We will index this credit memo under the invoice number.

16
Indexer
Step #16: Indexer
17
Replace the CM522147 with the original invoice number 3496185
Step #17: Replace the CM522147 with the original invoice number 3496185
18
Click here
Step #18: Click here

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.

19
Click here
Step #19: Click here
20
Type "Ctrl + V"
21
Type "Enter"
22
Click on "+ Index"
Step #22: Click on "+ Index"

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