• Credits are processed priority 2. [i.e. within 2 weeks of receipt]
• The only credits accepted are for payments we have made. Be wary of "internal credits" which suppliers issue to clear their own books for line items we have deleted on invoices. Request additional information from the supplier or inform them of the reason we will not accept the credit.
• When accepting a credit the amount should be evaluated against our payment history with the vendor. If it is improbable that we will be able to use up the credit within 6-8 weeks be prepared to explain the situation to the vendor if we begin receiving statements for delinquent invoices. AP accumulates [i.e. does not pay]  processed invoices until the credit can be taken. Payment history for standing order only vendors may be misleading.
• Between May through July, do not accept credits for large amounts unless you are absolutely certain that the credit can be taken in the current fiscal year. When in doubt, ask for a refund check. At the beginning of June fund managers need to begin planning how to expend their remaining funds by the end of August.
• DO NOT create prorate lines when processing credits even when itemized. Accept the total credit on one adjust pay line and mention the prorated charges in an extended note field. [e.g.,  incl. TAX, incl. SHIP, incl. TAX & SERVICE, etc.]
• If tax for the amount of $100.00 or greater was accrued, we will unaccrue the tax and reimburse the appropriate funds. Send a copy of original invoice and a copy of the credit annotated with fund transfer instructions to Carolyn Harding, Encina Hall, Rm. 10, MC 6070. (Remember to enter transaction on the NON-UNICORN TRANSACTIONS spreadsheet.)
• Credits should be processed against the same AP vendor number as the original payment. Consult supervisor if there is any consideration of NOT doing this.

Methodology

Procedure

1. Confirm that we have paid for the material we are being credited for.
   • In PRISM, verify that the invoice was paid and the check was cashed.
   • Verify that we did not delete the line item we are being credited for in APLINK or by evaluating the DISPLAY 2 ORDER screen of the OTR in Unicorn. The description/coverage information on the OTR must match the description on the credit or the original invoice must be consulted.
   • Compare credited amount with amount of original payment. (This should also confirm whether or not any tax is being refunded.)
2. In lieu of attaching a copy of the original invoice to the credit, you can annotate the credit with the following information:
   • vendor's invoice #, date, & line # of the payment for which we are being credited.
   • vendor's invoice date.
   • Unicorn invoice # of the payment for which we are being credited.
   example:  inv.# 123456, 05/10/01, line 6 (01S-1234)
3. Process the credit as an adjust pay line.
   • If the original payment was made in the current fiscal year, link an adjust payment line to the original payment. A $0.00 order linked pay line is not necessary.
   • If the original payment was made in a previous fiscal year, DUP the order into the current fiscal year if necessary, create an order linked payment line for $0.00 , then link the adjust payment line to it. Assign the $0.00 pay line a line # corresponding to the line # of the credit. Assign the credit the same line # followed by an "A" to it to keep associated lines together on an invoice record.
4. Include the following information in the Unicorn invoice record:
   • Cross reference original payment in an extended note field.
     format:  credit = inv. # <inv.#>, <inv. date>, line <line #>
     example:  credit = inv.# 1999, 04-01-99, line 5
   • Document tax or prorated charges refunded in an extended note field.
     format:  incl. <prorated charge>
     example:  credit = inv.# 1999, 04-01-99, line 5 -- incl. TAX & SHIPPING
   • Enter credit as a negative amount with a decimal point on an adjust payment line. ( A $0.00 pay line should have already been created if necessary.)
   • Enter description of credit in the parts field of the OTR preceded by "CR"
     Examples:  CR 1999   CR v.21,1999   CR v.58:4-12,1999
   • Receive and load OTR
   • Lock invoice.
5. If a significant amount of tax was accrued at the time of the original payment, send documentation to AP so the tax can be unaccrued and credited to the appropriate fund.

Adjust pay lines in Unicorn

• Credits can only be processed using adjust pay lines because they are the only payment lines that will accept a negative amount.
• An adust pay line can not exist on its own. It must be linked to an OTR with a standard pay line in the current fiscal year. Hence the need to create a standard pay line for $0.00 when processing a credit for a payment made in a previous fiscal year.
• An adjust pay line can not be linked to a standard pay line if created in the same "fiscal" week (i.e. Friday thru Thursday) unless both are for the same invoice.
• Be wary of orders with multi-funding segments!

Related procedure(s)
Refunds in Unicorn