UC San Diego SearchMenu

How to Process Accounts Receivable Credit Memos

Find out how to process a credit memo to reduce/ reverse a previous invoice.

Expand all

Decide how you want to process the credit memo.

  • To process a numerous amount of credit memos, this can be done electronically. Contact University Billing Services (UBS) for more information.
  • To process a few credit memos, this can be done manually by following the steps below.

How to assign a number for your credit memo.

  • To assign a credit memo number, just place the letters “CM” (credit memo) before the original invoice number that you want to apply the credit/ reversal to. 
    • Example: If original invoice number is AB1234, then the credit memo to apply to the original invoice will be CM1234. 
  • Your department must make sure not to duplicate credit memo numbers because they are unique identifiers.

How to complete the credit memo.

  • Send an email request to UBS for a copy of the credit memo template.
  • Complete all information on the credit memo as you would do an invoice. 
  • Send 1 copy to UBS, to be keyed into ISIS AR, via e-mail or to campus mail code 0025.
  • Send 1 copy to the entity to inform them that the original amount is being reduced/reversed. 
  • Keep 1 copy for your department records.

Note: Credit memos are considered a form of cash. Be sure to appropriately secure them online or in a locked cabinet just as you would cash or check payments.

UBS enters the credit memo into ISIS AR.

  • UBS enters the credit memo within 5 business days.
  • After the credit memo is entered into ISIS, it will appear as a debit (negative), reducing the amount on the original invoice.
  • If the invoice is paid, prior to processing the credit memo, then the remaining balance of that check payment (after the credit memo is applied) will be credited to the balance of the oldest outstanding invoice on the account.
  • If the entity has no other outstanding invoices, the check payment balance can be applied to future invoices or refunded to the entity. This must be done, via email request to UBS, by the department or entity. 

You continue to monitor activity on the account.

Expand all