Credit memos in AP are used to decrease a liability (amount owed to a vendor) account, posting a debit to the GL AP account and a credit to the distribution account. You can also create an invoice credit, sometimes called a "negative invoice".

Use the following steps to create credit memos:

1. Open AP, Invoices, Credit Memos. Enter the vendor ID or use 'Lookup'
2. Select to apply to 'Invoice' or 'Open Credits'. If 'Invoice' is selected, enter the invoice number or use the drop down list
3. Enter the credit reference, date and amount
4. Distribute the amount to the appropriate GL accounts and select Post

For details on using this feature, search the Sage BusinessWorks Help Index for 'Credit Memos'.

To search the Help index:

1. From the Launcher menu, select Help, A/P Contents. Click the 'Index' tab and type 'Credit Memos' in the search field.
2. Click 'Credit Memos' in the list displayed and select one of the listed options.

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How to create invoice credits (negative invoices) and track credits in Accounts Payable