Overview
This article describes how to handle a subaward credit memo by a subawardee to UCSD. This guidance is specifically intended for the central office staff.
Essential Information
- A credit memo is a document issued by a supplier when purchased products or requested services are not delivered, performed or are returned by the customer. It indicates a credit is owed to the customer for the value of the returned or undelivered goods.
Next Steps
1. If you receive a subawardee credit memo, upload it to Kuali Research (KR).
- Credit memos can also be uploaded to Payment Compass by the department.
2. Credit memos are also received through Payment Compass directly from the subawardee.
- KR sends the AP credit memo to OFC AP and once the AP credit memo is approved and posted, a negative cost is sent to PPM.
3. AP records the reduction of the expense/accounts payable & results in a credit balance in the liability account under the department's FinU until a refund check is applied to the credit memo:
- In the meantime, it is possible that the Credit Memo is used against another outgoing AP invoice that is payable to the same payee. Note: (if you never want the subawardee credit memo to be applied to future AP invoices, the AP credit memo needs to have “pay alone” flagged). By doing this, the only way for the credit memo to clear is for Payment Services to apply the “refund payment” using the refund check.
4. For intercampus credit memos, send a notification via email to paymentservices@ucsd.edu and the Payment Services team will create a “refund payment.”
5. The department or whoever received the check is responsible for depositing it to central cashiers. The central cashiers applies the payment as a miscellaneous receipt to the expense transaction, crediting the AP refund clearing account (Acct 101063).
- Please always include the AP Credit Memo number and supplier name or number when posting the misc receipt.