Purchase Credit Memo Overview (v5.0)

Modified on Fri, 26 Apr 2024 at 08:47 AM


Purpose of this document


Purchase credit memos can be used to process the return of goods to a vendor, either partially or in their entirety. Purchase credit memos can also be used to correct or reverse purchase invoices that were entered incorrectly.   If a purchase credit memo is used to correct the quantity received on some or all items, the posting process will create both a posted purchase credit memo and a posted return shipment.


Ceres Object release 5.00.00 is required for the functionality described in this document. 


Table of Contents


Creating Purchase Credit Memos


Creating purchase credit memos can be done in two methods, manually enter all the information or by copying the information from a purchase invoice by using the Copy Document function.  The Copy Document process will copy both the Header and Lines, if desired, from another open or posted document.  There are sections outlining both methods below.


1. Purchase credit memos can be accessed from Departments à Purchase à Order Processing à Purchase

    Credit Memos. 




2. If you are using batches, select your batch from the batch list; otherwise click Cancel.


3. A list of open purchase credit memos that exist within Ceres will display.  Select one from the list to edit or

    create a new credit memo.  



Purchase Credit Memo Header


1. To create a new purchase credit memo, select Home à New.




2. Press the Enter key to have Ceres automatically assign the next document number in the No. field.  This will

    also fill in the Posting Date, and Document Date by using the Work Date.


3. In the Vendor No. field, enter the vendor number or use the lookup to select the vendor from the list. The

    vendor’s name, address, contact, and fund. will flow from the Vendor Card.



4. If Ceres is setup to require a reason code to post a purchase credit memo, do a lookup in the Reason Code

    field and select a Code.


5. If purchase credit memos are being used to return product, then do a lookup in the FBC Product Source and

    FBC Product Category fields and select a Code.


6. Before posting, the Vendor Cr. Memo No. field is a required field and must be filled in.


7. Fill in the other fields on the Header, as needed.


Purchase Credit Memo Lines


1. Move to the lines of the purchase credit memo.

2. Select the appropriate Type from the drop down list.   In the case of Purchase Credit Memos, Item or G/L

    Account would be the normal selections. 

3. Enter the item or account number you wish to return depending on which Type you selected or hit F4 to get

    a list.   Although the name of the item, G/L account, or fixed asset flows to the Description field by default,

    you can use the Description field to add any relevant notes or other descriptive text regarding the

    transaction.  If the Post PO/PI in Detail option is toggled in the Purchases & Payables Setup, then the

    Description entered on the Invoice Lines will post in detail to the General Ledger Entries and the Vendor

    Ledger Entries.


4. Enter a Return Reason Code or hit F4 to get a list of your return codes.


5. Enter the Location that the Item will be returned from.  If using Branches, be sure to show the Branch Code

    column and to select the appropriate Branch.


6. Enter the quantity to be returned in the Quantity field.


7. Enter or select the Pallet No. you wish to return. 

  1. If you are not palletizing items, then your Pallet No. field will be blank. In this case, you may wish to select the Lot No. you are returning.
  2. Once the Pallet Number is selected, the Bin, Lot and other information from the original Pallet will auto-fill on the line. If you select a lot number only, you may need to fill in the Bin, zone and location manually. 

8. Select the dimension values for this credit memo.  If you inputted a Department Code and Project Code on

    the Invoice Details FastTab, the values will flow to the lines.


9. Fill in the other fields on the Line, as needed.


10. Enter additional lines, if needed.




11. Be sure to confirm that all the data has been entered correctly, especially paying attention to the 

No., location and quantity and then Post or Post & Print the document.


Using Copy Document

To expedite the process of entering a purchase credit memo, the User can use the function Copy Document. This process will copy both the Header and Lines, if desired, from another open or posted document.  The procedure to use follows.


1. Create a new purchase credit memo and press enter to assign the next document number

2. From the purchase credit memo Page, select Home à Process à Copy Document.



3. On the Copy Purchase Document Page, select Document Type and Document No. of the document you

    would like to copy from.



4. In the include Header field, place a check mark in this field if you want Ceres to copy the information,

    including dimensions, from the document header you are copying from to the document you are creating.

    The document lines will be copied regardless of the entry in this field.


5. In the Recalculate Lines field, place a check mark in this field if you want to recalculate the lines in the

    document you are creating. The process retains the item numbers and item quantities but recalculates the

    amounts on the lines based on the vendor information on the new document header. In this way, the

    process accounts for item prices and discounts that are specifically linked to the vendor on the new

    document header.


6. The information has been copied to the new document.  Edit as needed prior to posting.



7. If the document you are copying is for the return of product, and the items that are being copied have

    already been distributed or called for on other transactions, the below message will display.  Click OK and

    what lines can be copied will.  



8. Update or edit the purchase credit memo as needed prior to posting.

Related Topics

  1. Purchase Order Overview
  2. Purchase Return Order Overview
  3. Warehouse Pallets and Lots

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