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NorthScope allows users to enter basic accounts payable credit memos that integrate as payable transactions within the host system, if the AP Invoice/Credit Memo integration in the Company module is set to immediate or timed. These transactions are used to record credits the user is receiving against a vendor. This transaction does not use inventory items, or integrate with NorthScope’s Inventory module. Credit memos can be recorded in either NorthScope or the host system. However, a NorthScope credit memo provides additional capabilities, such as recording line item details and allocations against financial projects, fishermen, and tenders.

Software Version

This guide is applicable for NorthScope version 2.8.3 and newer.

Prerequisites

Required Prerequisites

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• Projects. Set up projects if licensed for Project Accounting to track expenses against.
• Set the purchasing preference for “Default Account – Settlement Accrual”. This will ensure that transactions will still post if the settlement account has not been manually configured for each fisherman, tender, or employee.
• Set the purchasing preference for “Enable Real Time Integration” to “Yes”. This user guide assumes the preference is set to “Yes”. If the preference is set to “No”, then the integration components described in Steps 3 and 4 will not occur.integration setup for AP Invoice/Credit Memo in the Company module. 
• Attributes setup for AP Purchasing - Credit Memo Transaction. 

Understanding the data flow

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A traditional credit memo occurs when the user is entering a credit from a vendor and none of the line items are being distributed (the “Distributed To” field is not assigned). When the transaction status is changed to “Ready to Post,” a Payables Transaction Entry is created in the host system’s Purchasing module, if the integration is turned on.

Each of these transactions contain the journal details for a typical credit transaction with the debit account defaulting from the Vendor's “Accounts Payable” account and the credit account(s) coming from the line item "Purchase Account". 

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A credit memo with Project Distributions occurs when the user is entering a credit from a vendor and one or more of the line items is being distributed to a Financial Project. When the transaction status is changed to “Ready to Post” a Payables Transaction Entry is created in the host system’s Purchasing module, if the integration is turned on.

Each of these transactions contains the journal details for a typical credit transaction with the debit account defaulting from the vendor’s “Accounts Payable” account and the credit accounts(s) coming from the line item "Purchase Account". 

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A credit memo with Fisherman or Tender Distributions occurs when the user is entering a credit from a vendor and one or more of the line items is being distributed to a fisherman or tender. When the transaction status is changed to “Ready to Post” a Payables Transaction Entry is created in the host system’s Purchasing module, if the integration is turned on.

Each of these transactions contain the journal details for a typical credit transaction with the debit account defaulting from the Vendor's “Accounts Payable” account and the credit account(s) coming from the line item "Purchase Account", which will default from the fisherman's "Settlement Accrual" account.

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• Vendor: Select the vendor for the transaction. This list contains all active vendors assigned a “Vendor Type” of Vendor. In order to process a credit transaction for a vendor with a “Vendor Type” of fisherman or tender, the user must use the Adjustment Transaction. This field is required.

Adding line items

By default, new transactions open with Click New from the grid toolbar to add blank rows for data entry. By default clicking New creates 5 blank rows for data entry. Complete the data entry for each line item the user wishes to add. 

Note: Clicking New from the grid toolbar saves the transaction.

Note: Additional lines can be added by clicking New grid toolbar icon.

Required line item fields:

• Description: Enter the description of the line item (e.g. Office Supplies or Rent). This field defaults once the item has been selected. Note: New line items on these transactions, without a Description, will not be saved.
• Extended: This field is read-only and displays the product of the price per UOM and the quantity. 
• Price: Enter the price for the line item. Prices must be greater than or equal to 0.
• Purchase Account: Enter the expense account that will be used for the credit side of the journal entry (for an invoice, this would be a Debit Account). The lookup contains all the active financial accounts that are marked as “Use in Purchasing”. This field is blank by default, but is required in order to save the line itemrequired and defaults to the Vendors default "Purchase Account" (this can be assigned from the Accounts tab on the Vendor record view) and can be edited while the transaction is 'New.'. If the line is distributed to an employee, this field will default to the Employee Accounts Receivable Account and will become disabled. If the line is distributed to a Fisherman, Tender, or Fisherman & Tender, this field will default to the AP Vendor's Settlement Accrual Account and will become disabled.
• Quantity: Enter the amount of the line item. This field defaults to 1 and can be positive or negative, but the total transaction amount must be greater than 0or equal to $0.

Optional line item field(s):

• Distributed To: If the line item is being distributed, use this lookup to select the project, fisherman, or tender. The lookup contains a list of all active projects and all active vendors with a “Vendor Type” of Fisherman, Tender, or Fisherman/Tender.
• UOM: This field displays a drop-down menu of all active UOMs to select the unit of measure for the line item. This field defaults from the Purchasing preference "Default Invoice, Credit, & PO UOM", but can be changed to any active UOM in the Units of Measure master file. If no default preference is set, or the UOM is inactive, new transaction lines will not default a UOM value.  This field can be edited while the transaction is set to a status of 'New' and is not required.

Placing Credit Memos on Hold (Optional)

The properties tab on the record has a field ‘Pmt./Apply Hold’ which allows the user to place Credit Memos on hold, preventing it from displaying in the list of transactions when applying documents. 

To place a Credit Memo on hold, open the Credit Memo transaction, click the properties tab, scroll to the ‘Pmt./Apply Hold’ field and click the dropdown menu and select ‘Yes’.  Click Save from the header toolbar.  Credit Memos in the status of New, Approved, Ready to Post or Posted can be placed on hold.  The field will be disabled for transactions in the status of Void or Replaced. Credit Memos that have been fully settled will not be able to be placed on hold.

Credit Memos may also be placed on hold using the Mass Update tool from the AP Invoice and Invoice Lines List Views and Inquiries as well as the Vendor History Inquiry. 

Assigning Attributes (Optional)

The Attributes tab on the record will include all user-defined Attributes assigned to AP Purchasing - Credit Memo Transaction.

To setup Attributes for the AP Purchasing - Credit Memo Transaction, navigate to Comapny → Attributes → AP Purchasing → Transactions → Credit Memo.

Step 2: Finalizing the Transaction in NorthScope

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• Ensure there is at least one valid line item on the transaction.
• Ensure all the default GL Accounts can be assigned
  • The “Accounts Payable” account for the transaction vendor.
  • The “Settlement Accrual” account that defaults from the transaction vendors “Settlement Accrual” account or from the “Default Account – Settlement Accrual’ account in the Purchasing Preference.
• Ensure the GL Date resides within a valid fiscal period as determined by the host system. 
• Ensure the required Attribute values have been entered. 

If any of the GL Accounts cannot be assigned, a message will appear.

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Step 3: Reviewing the transactions in the host system (optional)

If the purchasing preference for “Enable Real Time Integration” Integration Setup for AP Invoice/Credit Memo is set to “Yes”Timed/Immediate, every credit memo changed to “Ready to Post” will be created in the host system. The journal entry will appear in the host system's Financial module as a Transaction Entry in the batch titled NS followed by the year, month, and day with the following format: NS: YY_MM_DD. For example, if the Credit Memo was integrated on July 14, 2015, the Batch ID for the transaction entry would be NS: 15_07_14. Once a transaction has been integrated in the host system, it can be reviewed prior to posting. Because posting in the host system makes all the updates to the general ledger, the GL Distributions should be reviewed. This can be done by opening the transaction and clicking the “Distributions” icon in the lower right corner. 

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Step 4: Posting in the host system

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The batch the transaction belongs to must be posted in the Host system, if the Integration Setup for AP Invoice/Credit Memo is set to Timed or Immediate.

Posting the batch accomplishes the following:

• Posts the transaction within the Purchasing Module of the host system
• Updates the General Ledger of the host system
• Updates the Transaction Status in NorthScope from “Ready to Post” to “Posted”.

Note: Although this step is required, it does not need to be done for each transaction. Posting can be done nightly or as needed.

If the Integration Setup for AP Invoice/Credit Memo is set to None, the transaction status is set to ‘Posted’ when the transaction is saved as ‘Ready to Post’  

Step 5: Reviewing in NorthScope

Once Step 4 is complete and the transactions have been posted in the host system, the following events will happen in NorthScope:

For transactions that did not contain any line items with distributions 

The transactions that were posted in the host system will have their status automatically updated from “Ready to Post” to “Posted” and Transactions with status of ‘Posted’ will no longer be visible in the NorthScope Purchasing Transaction Invoices List View. These transactions can be viewed in the Reports section.

For transactions that contained at least one line item distributed to a project

The transactions that were posted in the host system will have their status automatically updated from “Ready to Post” to “Posted” and Transactions with status of ‘Posted’ will no longer be visible in the NorthScope Purchasing Transaction Invoices List View. These transactions can be viewed in the Reports section.

The “Actual Expense” value of each Project will be updated to include the details from each transaction line item that was distributed to a project, decreasing the expense by the distributed amount.

For transactions that contained at least one line item distributed to a fisherman or tender

Each transaction that was posted will have its status automatically updated from “Ready to Post” to “Posted” and Transactions with status of ‘Posted’ will no longer be visible in the NorthScope Purchasing Transaction Invoices List View. These transactions can be viewed in the Reports section.

Settlement Transactions will be added for each fisherman and tender that was distributed to, owing the fisherman and/or tender the distributed amount.