Regarding Credit Memo 30741 for this customer: Cetec ERP
I made a credit memo and it was no longer needed, so we dropped the line to delete it as I read in this thread: How to close a Credit Memo
However, I had to remove the GL lock to drop the credit memo and I was concerned afterwards that this action may have messed up our last fiscal year’s P&L and/or Balance sheet in Cetec. So, the credit memo was entered again as Credit Memo 30741.
Is it okay to drop/zero a credit memo from a prior fiscal year?
I also thought I saw a place where it said the Ledger function could be used to reverse the ledger entry for a Credit Memo, which I tried. The Ledger looked fine, but the Credit Memo sat hanging open in the Customer record.
Your input on the best way to remove this Debit Memo from our last fiscal year with the accounting in mind would be appreciated!
Sherri,
I can still see your Credit Memo 30741 still open on 2024-07-26, with a reversing entry posted on 2024-11-20, so you ledger/financials for 2024-07-31 should not have changed, with the reversal on November date. I do see the issue that while the ledger is reversed in November, the CR Memo is still in open state. I need to test options for closing that CR Memo with November date so that any ledger impact/activity remains in November 2024. I will get right back to you as quickly as possible.
I do know that a “dummy” Invoice and “dummy AR Pmt” with November dates can be used to close that open CR memo, but I’m looking into which account to post the CR to on the “dummy” Invoice. It is possible I will need more information as to why the CR Memo was no longer needed to help make that determination. With that information I will test a bit further to make sure I am giving you instructions to post to the correct account with all activity in November 2024 and will get back to you as soon as possible.
So with the original CR memo ledger posting in July 2024 and the reversal ledger posting in November 2024, you have no affect from that on the prior Fiscal Year End, but you also have no affect on Inventory since there is a DR and a CR cumulatively.
So, with November dates, if you create a “Bill Only Invoice” for same amount as the CR Memo, with a CR to Inventory in the split line, this will DR AR and CR Inventory. Then, with November date, you will create an AR Pmt to the customer for -0- value, checking the include box for the open CR Memo and the Bill Only Invoice you just created. The two will offset for -0- amount in both AR and Cash fields.This will clear the open CR Memo and restore the CR amount to the Inventory GL account for the defective part purchase.
Instructions for creating a “Bill Only Invoice” here:
(Note: you will enter Qty 2219 and PRCpart number/name from CR Memo, enter the Inventory GL Account, and then confirm or correct the full CR memo amount in the Resale field.) Then create your -0- value AR Pmt per instructions in previous paragraph.
Let us know if you have any questions or need any further assistance with this issue, and Happy Thanksgiving!
I would appreciate your review of this Credit Memo: Cetec ERP I followed the steps above to do a bill only invoice and AR payment and it cleared it from the customer record - but was I supposed to remove the Ledger Entry Reversal that I mentioned I did in the original post here? Cetec ERP