Aging Credit Notes

Credit notes entered into the Accounts Receivable or Order Processing modules can be aged two ways:

·     Based on the credit memo's due date.

·     Based on the due date of the associated debit memo or invoice.

These two approaches are shown in the following example. 

Before Credit Memo:

If a credit memo is issued for the customer for an invoice or debit memo in Past Due 1, one of two aging processes can occur:

Aging Against Current (aging is based on the credit memo's due date which is current)

Aging Against Past Due (aging is based on the associated invoice or debit memo in Past Due 1)

Note:    Aging based on the associated invoice/debit memo can only occur if an invoice or debit memo has been associated with the credit memo. 

Two flags on the Reference File determine which approach will be used.  In Order Processing, the flags are on category 413.  For Accounts Receivable they are on category 300.  The flags are:

·     Validate Reference Number

·     Age Credit Note

The following shows the combinations.