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Creating a Customer Credit Memo

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 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, the revenue that was received when the invoice was created will be reversed.

  1. Navigate to Accounts Receivable & Cash.

  2. Click on Customer Credit Memo.

  3. Enter the original invoice number or the invoice number to be canceled.

  4. Click Continue.

    Screenshot of KFS showing the Customer Credit Memo eDoc. The Invoice Reference number is circled in red, as is the Continue button at the bottom.

  5. In the Description field, enter your 4-digit organization code, abbreviated department name, and the invoice number to be canceled. The Explanation is optional. This text can be copied to the Notes and Attachments as justification for the cancellation.

    Screenshot of KFS showing the Customer Credit Memo eDoc. The Description and Explanation fields are circled in red.

  6. Enter either the quantity or amount you are canceling, but not both.

  7. Click Recalculate.

    Screenshot of KFS showing the Customer Credit Memo eDoc. The Quantity and Amount fields are circled in red, with a note that a user can enter either the quantity or amount, but not both.

  8. Copy the text from the explanation above.

  9. Attach backup documentation and/or emails justifying the cancellation.

  10. Click ADD.

  11. Click Submit.

    Screenshot of KFS of the Notes and Attachments section with the Add and Submit buttons outlined in red.

Once you click Submit, the Document was Successfully Submitted message will appear. In the image below, the status updates from INITIATED to ENROUTE.

Screenshot of a successfully submitted credit memo in KFS with a confirmation message.

Customer Credit Memos are created to cancel charges on customer accounts. When a Customer Credit Memo is created, it is extremely important for departments to enter a note in the Notes and Attachments section of the Customer Credit Memo eDoc. If your department is audited, you must provide documentation as to why you credited the customer’s account. Be sure to enter a note describing the reason for the credit on the account/cancellation of the invoice. The more information (emails/correspondence) you provide, the better.

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