Creating a Customer Credit Memo

Staff can create a customer credit memo through Kuali Financial Systems (KFS).

Customer credit memos (CRMs) are meant to reduce charges (units or dollars – not both) on an existing invoice, and can only be entered against an invoice with an outstanding balance. CRMs route to the Fiscal Officer of the revenue account being credited on the original invoice, and the AR Manager for approval.

For the AR Manager to approve the CRM, you must include adequate documentation in Notes and Attachments. Once the CRM is approved, revenue that was received when the invoice was created will be reversed.

To create a Customer Credit Memo,

1. Navigate to Accounts Receivable & Cash.
2. Click on Customer Credit Memo.
   
3. Enter the original invoice number or the invoice number to be cancelled.
4. Click Continue.
   
5. In the 'Description' field, enter your 4-digit Org Code, abbreviated department name, and the invoice number to be cancelled. The Explanation is optional, however; you can choose whether to include additional detail in this field. This text can be copied to the Notes and Attachments as justification for the cancellation.
   
6. Enter either the quantity or amount you are cancelling, but not both.
7. Click ‘Recalculate’.
   
8. Copy the text from the explanation above.
9. Attach backup documentation and/or emails justifying the cancellation.
10. Click ADD.
11. Click Submit.
    

Once you click Submit, the ‘Document was successfully submitted’ message will appear. In the image below, the status has been updated from INITIATED to ENROUTE.

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