Add Credit Memo Distributions

Credit memo distributions include account details that determine how the credit posts to the general ledger, such as debit and credit accounts, distribution amounts, and classification by projects or transaction codes. Add distributions when you create a new credit memo.

Tip: To automatically default distributions when you create a credit memo for a vendor, you can define default distributions on the vendor's record.

1. When adding a new credit memo, under Distributions, select debit and credit accounts, then enter a description.

   Tip: Debit and credit columns don't always equal the invoice total because invoices allow for negative distributions. Normally, invoices are distributed to expense accounts, which are debited to record the expense. A credit to an expense account reduces the expense amount, and is sometimes referred to as a negative distribution.

2. Next, select the projects, classes, grants, and transaction codes for the distribution.

3. Determine if you want to apply an account distribution set. With sets, you split an amount you've assigned to an account over several projects and transaction codes.

   Tip: To save time entering distributions, select More, Apply account distribution set. Distribution sets default the information you need in the line instead of selecting data in each column. If you split the distribution, select the icon in the Split column and then select More, Apply project distribution set to also save time entering splits.

   Use the Distribution Set Creator Excel add-in to add cash management distribution sets.

4. Add custom fields as necessary.

5. Select an interfund set to balance accounts if the debit and credit accounts aren’t in the same fund.

6. To distribute discounts to invoice expense accounts instead of the default discount account, select Distribute discounts to invoice expense accounts.

7. Select Save.

Edit or Delete Credit Memo Distributions

You may need to update distributions for a variety of reasons. Here are a few examples:

• Correct the general ledger account.

• Adjust the split amount.

• Update project, grant, or transaction coding.

• Align with finalized accounting decisions.

To make distribution updates from the credit memo record, select Edit on the action bar. Make any necessary updates, then save.

To delete a distribution, select Delete at the end of a distribution's row, then save.

Tip: For posted invoices, you can create invoice adjustments to change the amount or distribution.