A credit memo in Inn-Flow is used when a vendor issues you a credit – for example, a returned product, an overcharge on a previous invoice, or a billing adjustment. Instead of creating a separate transaction type, Inn-Flow handles credit memos as negative invoices within Accounts Payable.
How to Enter a Credit Memo
Go to Accounts Payable and open the Invoice Inbox.
Click Add Invoice and select the Vendor who issued the credit memo.
Enter the invoice details as you normally would – use the vendor's credit memo number as the Invoice #, set the Invoice Date to the date on the credit memo, and select the appropriate Chart of Account.
In the Amount field, enter the credit amount with a negative sign in front of it (e.g., -150.00).
Click Send to Approval to record the credit memo.
Example Scenario
Your hotel received a $200.00 credit from a cleaning supplies vendor for a defective product return. Enter the invoice as usual with the vendor name, credit memo number, and date. Code it to the same Chart of Account as the original purchase (e.g., Cleaning Supplies). Enter -200.00 as the amount. When this credit memo is applied during payment, it will reduce the total amount owed to that vendor.
IF PRO TIP: If you have both an outstanding invoice and a credit memo from the same vendor, you can select both during the payment process. The credit memo (negative amount) will offset the invoice, reducing the total check or ACH amount.
The credit memo will appear as a negative line item in your AP aging and vendor reports. It remains in your payable queue until it is applied against a future payment to that vendor.