How to Process Accounts Receivable Credit Memos

• Process credit memos electronically if you will be be crediting a large number of entities on a regular basis. In this case, contact Tracy Stutts, (858) 534-6806.
• Process credit memos manually if you credit just a few entities on an occasional basis.In this case, follow the steps below.

• Contact Tracy Stutts, (858) 534-6806, and she will assign your group a series of credit memo numbers.
• Your department must make sure not to duplicate credit memo numbers because they are unique identifiers.

• UBS sends you an Excel version of the credit memo with your series of numbers.
• Complete all information on the credit memo.
• Send 1 copy to Tracy Stutts, Mail Code 0025, to be keyed into ISIS.
• Send 1 copy to the outside entity, or otherwise inform the customer that the original invoice amount is being reduced.
• 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 within 5 business days.
• You can see the update in ISIS the day after UBS enters it. It will appear as a debit, reducing the amount on your original invoice.
• If the outside entity paid the invoice(s) before UBS processed the credit memo, the check payment credit will be applied first to the balance of the invoice and second to the oldest outstanding invoice on the account.
• If the entity has no other outstanding invoices the credit balance can be:
  • Applied to future invoices
  • or
  • Refunded to the entity

  Contact Tracy Stutts, (858) 534-6806, for refunds.

• For more information on monitoring and managing your accounts receivable, see:
  • Accounts Receivable Management Tools
  • Troubleshooting Your ISIS Accounts Receivable