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Handling Credit Memos

Dev Chidipi
Updated

Your bank may support credit memo details within its remittance data. This is represented as a negative amount among the same lines as the invoices in the bank file. The line also would include a credit memo number (instead of an invoice number). This would identify the credit memo in NetSuite. It’s an indication that the end customer specified that (s)he was making a lesser payment due to an issued credit memo. The Cash Application Manager looks to apply the credit memo as part of that payment. A credit memo is only specified for a payment type of check (not ACH or wire).

NetSuite has a particular limitation in handling credit memos. A Credit Memo has to be applied when the payment is created, not later. Therefore, if the customer’s payment reference a credit memo, Cash Application Manager doesn't create a payment until the Credit Memo is identified. Otherwise, you would just have to delete it anyway. To resolve an unidentified credit memo, you are required to search and select the credit memo from the Cash App Manager record.

  1. Navigate to the Cash App Transaction record that includes a credit memo. An example is shown below.

  2. If we check the Native Transactions tab, we notice that a payment was successfully created because the credit memo was identified as shown in the NETSUITE CREDIT MEMO field.

  3. Let’s say you find another Celigo Cash App Transaction with a credit memo in the remittance but the Cash Application Manager cannot find the NetSuite credit memo. Perhaps it was mis-keyed and it might look like the example below. Notice that the NETSUITE CREDIT MEMO field is empty even though the bank specified a credit memo. Also, note that Status is set to “Errors/Skipped”.

  4. Notice in the following image, there’s no payment. We do that because NetSuite doesn’t allow us to apply a credit memo except on payment creation. So, we save the extra delete payment step for the user.

  5. This step demonstrate how to fix this issue. You first edit the Cash App Manager Credit Memo record as shown below.

  6. From the Celigo Cash App Credit Memo record, select the correct credit memo. In this case, there was a missing zero when the number was keyed. Also, note that you will need to search by typing “Credit Memo” first.

  7. Save the record.
  8. Note that the credit memo is now selected on the Celigo CashApp Record and the payment is automatically created.