Credit Memos - FAQ

Important: Service Providers will be renamed to Vendors in an upcoming release. This article reflects that change.

This article provides answers to frequently asked questions about vendor credit memos in Vantaca. Credit memos help you track and apply vendor credits—such as refunds, overpayments, or promotional credits—to future invoices.

Below you'll find guidance on creating credit memos, applying credits during payment, resolving common errors, and understanding the difference between credit memo application and negative GL entry methods.

Contents

• Q: What happens if I void an Invoice that had a Credit Memo applied to it?
• Q: Can multiple Credit Memos be applied to a single invoice?
• Q: Why was a $0.00 check issued? Do I have to send this to the vendor?
• Q: Is the Credit Memo Balance being included on the 1099 Balance?
• Q: Do I need to change anything with my Print Queue/Check Queue workflow to accommodate Credit Memos?
• Q: Can Credit Memos automatically be applied or is there a way to configure a vendor to have reoccurring Credit Memos applied to their invoices?
• Q: When I apply vendor credit to pay an invoice in full, I receive the error "Payment amount must be greater than zero. Received: 0.0000" and the invoice remains unpaid. What should I do?

Q: What happens if I void an Invoice that had a Credit Memo applied to it?

A: The Credit Memo info will be included in the Void Entry, reversing the Credit Memo Entry, and adding the applied balance back to the total balance for the Credit Memo, available to be used again. When the Credit Memo is reversed, the Credit Memo ID will be recorded and able to be referenced in the Invoice's Audit tab.

Q: Can multiple Credit Memos be applied to a single invoice?

A: Yes - any and all credit memos that are there with an available balance can be applied to a single invoice if needed.

Q: Why was a $0.00 check issued? Do I have to send this to the vendor?

A: That check is showing as $0.00 because the total invoice amount was covered by the applied credit memos. You should still send the check to the vendor for their accounting purposes and maintaining accurate invoice activity history.

Q: Is the Credit Memo Balance being included on the 1099 Balance?

A: The 1099 Balance will include the Credit Memo under Service Providers > 1099 Balances > 1099 tab > Included. Credit Memos with an amount of $0.00 will automatically be Excluded and unable to be Included until the Amount has increased to a value greater than $0.00.

Q: Do I need to change anything with my Print Queue/Check Queue workflow to accommodate Credit Memos?

A: No - Credit Memo information will automatically be included, so you can continue to print, per your association's needs, without having to worry about the information being excluded on the checks. All Credit Memos that have been applied will be itemized along with the Invoice Number, Credit Memo Number, and Applied Amount.

Q: Can Credit Memos automatically be applied or is there a way to configure a vendor to have reoccurring Credit Memos applied to their invoices?

A: No - at this time, Credit Memos must be manually applied to invoices to mitigate the potential for accounting errors that may be introduced with automated processes.

Q: When I apply vendor credit to pay an invoice in full, I receive the error "Payment amount must be greater than zero. Received: 0.0000" and the invoice remains unpaid. What should I do?

A: This error occurs when applying credit equal to or greater than the full invoice amount and results in a $0 bank payment, which the system rejects during validation. This is particularly common with ACH and VendorPay payment types.

To resolve this, use the Negative GL Entry Method:

Note: For complete instructions on using negative GL entries, see: Negative GLs as Invoice Credits.

1. On the invoice coding screen, enter the Invoice Total (e.g., $150.00).
2. Add your GL entries as normal, totaling to the invoice amount.

3. Add an additional GL line item using the same expense GL account and enter the negative credit amount (e.g., -$150.00).

   Important: Approve the invoice from Accounting > Approve Invoices (you will not be able to approve from Manager Complete Data Entry when using negative GL entries).

4. Navigate to Accounting > Pay Invoices to view the negative GL amount in the Applied Credit column.
5. Process the payment normally.

The check stub will display both the invoice and credit details for your records.

Alternative workaround: If the invoice pay type is set to ACH or VendorPay, you can change the pay type to Auto-draft before approving the payment. When approved, the system will mark the invoice as paid without attempting to process a $0 electronic payment.