1. Open Accounts Payable, Main, Manual Check and Payment Entry.
2. Enter the bank code. It’s required but doesn’t affect the General Ledger.
3. In the Check No field, type APP followed by a 3-digit number (for example, APP012).
4. Use the next number in sequence for each new manual check (for example, APP013, APP014).
5. Set the Check Amount to zero. You can’t change this value.
6. Click the Header tab. Choose the vendor number to apply the credit memo.
7. Click the Lines tab.
8. On Line 1, select the credit memo in the Invoice No field. Credit details will appear.
9. On Line 2, select the invoice to apply the credit memo. Invoice details will appear.
10. If needed, adjust the Invoice Amount to match the credit memo’s positive value.
11. Make sure the check distribution amount is zero. Click Accept.
12. Print and update the Manual Check Register.

 NOTE: You’ll see a prompt to update the Daily Transaction Register, but you don’t need to. If you do update, a “data file is empty” message will appear. 

Tips

• The system purges zero-dollar debits and credits after the set number of retention days
• These entries also drop from the A/P Aged Invoice Report during the period end processing
• Set retention days in Accounts Payable, Setup, Accounts Payable Options
• If retention is 30 days and the check date is October 18, the purge happens after November period end
• If retention is 60 days, purge happens after the December period end
• Use this option to apply Petty Cash payments to AP invoices

How to enter credit and debit memos in Accounts Payable