- Debit Memos are typically used to remove Open Items. Do not create a Debit Memo to remove a Grant from Open Items. Instead, run the appropriate Grant Adjustment process which will create the Debit Memo for you (e.g. Grant Cancellation or Amount Correction).
- The Grant Adjustment processes can also create Debit Memos which will modify an Open Item (e.g. Changing the Fund or Amount).
- You can add Debit Memos yourself to remove Administrative Vouchers.
- They can also be added to represent a credit from a Vendor.
Creating a Debit Memo to Remove an Administrative Voucher in Open Items:
- Find and select the unpaid Voucher in Accounts Payable Open Items.
- Click the Create Debit Memo button from the Voucher tab (or from the data grid, right click and select Create Debit Memo).
- Fill in the date of the Debit Memo. Important: This is also the Apply Date in the General Ledger.
- Click OK. You'll receive a message that the Debit Memo was created.
- Depending upon your FIMS version you might get an offer to run the AP Edit and Post. If not, go to Item Entry and post the Debit Memo.
Creating a Debit Memo for a Credit (to be applied now or later to an invoice):
- In Accounts Payable, click on the New A/P Item button in the upper right hand corner.
- Select the Vendor associated with the Debit Memo.
- Enter an Invoice No. Entering in the Invoice Number associated with the returned or credited item is appropriate.
- Enter a description and a date associated with the event.
- Important: Click on the radio button labeled Debit Memo and check Debit Memo box.
- If you are applying this Debit Memo to an existing Voucher, enter the number in the Apply To box. If you have no Voucher outstanding to apply to, leave the Apply To box empty.
- Click Save.
- Click on the Line Items tab and click the New button on the toolbar.
- Fill in the appropriate information. If you have more than one expense account or need to detail the items, you can add additional lines. Note: In the case of a Debit Memo, FIMS will automatically credit the Expense account and debit Accounts Payable account (the opposite entries of a regular Voucher).
- Click Save when done.
- Run the AP Edit and Post from the Processes tab. The Debit Memo (credit) will stay in the Open Items area until there is a new Voucher to apply it to.
Remember that a negative debit memo will increase the value of the voucher it is applied to. A positive debit memo will decrease the voucher amount once applied.