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Credit Memorandums and Refunds

Credit Memorandums from vendors are funds owed to the University and should be verified and processed immediately.  Vendors issue credit memos for returned goods, overpayments, duplicate payments, exchanges, pricing discrepancies, rebates, etc.  Proper management and application of credit memos is expected.  It is important that AP receive all outstanding credits as soon as possible. Failure to properly manage and apply credit memos reduces the available funding.  Unclaimed credit memos will be seized by the state as part of its auditing process.

  • If you are due a credit for any reason, and do not receive one, follow up with the vendor to request receipt of the credit memo.
  • If a credit memo is anticipated, the department should hold the invoice until the credit memo is received.  The credit memo and the invoice should be processed together as follows:
    • Enter the debit voucher in the Financial System.  Add a comment to the voucher to note that there is a credit memo to be processed with the invoice.
    • Campus approve the voucher.  Do not scan the invoice into the system.
    • Enter the voucher # of the original invoice (resulting in the credit) on the credit memo.
    • Send both the invoice and credit memo to the Controller’s Office – Accounts Payable, Attention: Andrea Turner, Campus Box 7204.  This process will ensure both the voucher and credit memo are processed at the same time.
  • If a credit memo is received after an invoice has been paid and the department does not anticipate additional business with the vendor within 30 days, the department is responsible for requesting a refund check in lieu of the credit.  Departments should exercise care when dealing with a vendor that will not provide refunds.   The refund check should be sent to AP for processing.
  • In the event an invoice is processed prior to receipt of the corresponding credit memo, the department can write on the credit referencing the original voucher # and project/account codes and submit to Accounts Payable/Andrea Turner at Campus Box 7204.  The name of the individual submitting the credit memo should be included as a point of contact.  Future invoice payments from any department will offset credit memos.  No credit memos should be held back by a department.  All credit memos must be forwarded to Andrea Turner in A/P.
  • Because the University does not employ a formal returned goods process through a centralized unit, it is the responsibility of each department to ensure that any goods rejected or returned result in proper credit returned to the University.
  • When a refund check is received in lieu of a credit, the check should be credited to the same project and account charged as used on the original expenditure.
  • Some vendors offer an early payment discount, such as 2/10, net 30.  This means that the buyer (NCSU) may deduct 2% of the amount owed, if the payment is received within 10 days.
    • Small Purchase invoices that note a discount should be immediately entered and campus approved.
    • In the comments box, on the voucher’s Routing Summary Page, note “discount to be taken”
    • Accounts Payable will determine if the discount can be taken before approval.
    • PO invoices that note a discount, should be sent immediately to:
      • Attn PO Processing Unit, CB 7204
      • Note, on the invoice, discount to be taken.
      • All receivers and approvals should be completed prior to sending the invoice to Accounts Payable for processing
  • Credit Memorandum and Refund processing questions should be directed to Andrea Turner, 919-515-7220.