Oregon University System

Oregon University System Logo

OUS

 

25.40 Credit Memos

25.40 Credit Memos, Chancellor's Office Businesss Policies & Procedures

Purpose:

To establish policies and procedures associated with processing credit memos.

Policy:

The following procedures will be used for processing credit memos.

Procedures:

  1. To prepare a credit memo for processing, Business Processing Staff:
    1. Assembles supporting documents (credit memos, explanation of the reason for the credit, reference to original payment, etc.) as a credit memo packet;
    2. Attaches a Payment Voucher form or a Payment Sticker(the sticker can be formatted to print on labels and printed off sheets at a time) (both of these are optional);
    3. Assigns the index from to which the credit should be made; and
    4. Signs/initials and dates credit memo packet as "verified."
  2. The Business Processing Staff routes the invoice packet to the Department Head or Department Approver for approval.
  3. The Department Head or Department Approver approves the credit memo packet for processing with an approval signature/initials and the date. The Department Head or Department Approver approves credit memos for processing within the following parameters:
    1. Approval means attesting that the credit memo is (1) within his or her delegated authority to approve; (b) a lawful, legitimate, and necessary transaction to credit state/OUS funds; and (c) an appropriate credit to the index designated.
    2. The approval is made within delegated authority on file with Business Processing staff. If the transaction is over the designated dollar limit for that index, the Department Head performs this approval. For transactions less than or equal to the designated dollar limit, the Department Head or Department Approver performs this approval.
  4. The Department Head or Department Approver routes the credit memo packet to Business Processing Staff for input into FIS.
  5. Upon confirming that the credit memo packet has all necessary approvals, the Business Processing Staff assigns the appropriate account code, inputs the transaction in FIS, and records the FIS invoice number. NOTE: Be sure to check the box labeled "Credit Memo," on the first screen of FIS form FAAINVE to process the transaction as a credit (instead of a payment).
  6. The Business Processing Staff routes the credit memo packet to the FIS Approver.
  7. The FIS Approver approves the credit memo in FIS if, upon examining the credit memo packet:
    1. All necessary approvals have been made.
    2. The information which has been entered into FIS agrees with information on the credit memo packet.
    3. The transaction appears reasonable and within the normal range of business activity for the Department.
    4. Prior to final approval in FIS, the Approver brings any unusual items to the attention of the Business Services Manager for resolution. The Business Services Manager:
      • reviews the unusual items,
      • clarifies the facts and circumstances (as needed),
      • researches applicable laws, rules, regulations, policies, past practices, and approved exceptions,
      • consults with Controller's Division staff and Controller (as needed) to determine resolution, and
      • coordinates communication of resolution to Department Head and appropriate Department Approver.
  8. Periodically (at a minimum of quarterly), Business Processing Staff reconciles documentation with activity in FIS.
  9. Following the reconciliation, Business Processing Staff files the credit memo packets in accounts payable archive files.

Forms:

Banner Input Forms:

FAAINVD Invoice/Credit Memo Cancel Form
FAAINVE Invoice/Credit Memo Form
FOADOCU Document by User
Used to query by originating user ID (inputter) all documents that are completed, approved, incomplete, or cancelled. This screen is helpful when the inputter wants to make a correction to a completed document prior to it routing for FIS approval. The inputter can use this screen to deny (disapprove) a completed (but not approved) document so that corrections can be made.
FOAUAPP User Approval Form
Remove name displayed to view all documents in all queues

Banner Query Forms:

FAICHKH Check Payment History Form
Shows status of check (e.g., check date and date cashed for final reconciliation).
FAIINVL Invoice/Credit Memo List Form
(Open, Paid, Suspense, or Hold)
FAIVNDH Vendor Detail History Form
More specific information can be obtained by querying on elements in the lower block.
FGIDOCR Document Retrieval Inquiry Form
Query on posted invoices with option of seeing FGQDOCP document postings (accounting detail information)
FOIAPHT Approval History Form
Query by document code to display originating user and approver.
FOIDOCH Document History Form
Query by Invoice number to show status (incomplete, complete, approved)
Shows other documents tied to the payment (e.g., PO, check, and asset tag)

Banner Reports:

FARINVA Invoice Activity Report
Print detail and summary invoice activity for a specified period of time. CAUTION: Remember to enter 05 option of Vendor ID to avoid getting ALL vendors activity within a given time period.
FWRVHST Single Vendor History Report
Print detail and summary invoice activity for a specified period of time.

Last Updated: Last Updated: 11/17/03