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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.

  • The credit memo and the invoice for a small purchase should be processed together, if possible, 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.
    • Have the voucher Campus Approved. Do not scan the invoice into the system.
    • Provide the voucher # of the original invoice (resulting in the credit) in the email.
    • Email both the invoice and credit memo to NCSU Vendor Credits at
    • This process will ensure both the voucher and credit memo are processed at the same time.
  • If a credit memo is anticipated, the department can hold the invoice until the credit memo is received. 
  • If an invoice is processed prior to receipt of the corresponding credit memo, the department should reference in the email the original voucher # and project/account codes and email the credit memo to NCSU Vendor Credits at
    • 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 A/P.
  • Credit memos for PO Invoices should be uploaded through the PO Invoice Upload portal.
    • Make sure to select the Credit check box and enter a negative total amount. 
    • Add a comment referencing the original voucher number.
  • If you are due a credit for any reason and do not receive one, follow up with the vendor to request a copy of the credit memo.
  • 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 and notifying NCSU Vendor Credits at
    • Departments should exercise care when dealing with a vendor that will not provide refunds. 
    • When a refund check is received in lieu of a credit, the check should be credited to the same project and account charged on the original expenditure.
      • The refund check should be sent to A/P for processing at:

        North Carolina State University
        Attn:  Elena Cabrera
        Campus Box 7204
        Raleigh, NC  27695-7204

  • 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.
  • Some vendors offer a prompt 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.”
    • PO invoices that note a discount, should be uploaded immediately through the PO Invoice Upload portal.
      • Select the Discount check box.
      • All receivers should be processed prior to uploading the invoice to the portal.
    • Accounts Payable will determine if the discount can be taken before approval.
  • Credit Memorandum and Refund processing questions should be directed to NCSU Vendor Credits at You can also contact Elena Cabrera, 919-515-7220, or Andrea Turner, 919-515-7203.