New Guidance on Credit Memos: Receiving Required Before Credits Can Be Applied
VCU Procurement Services is updating the way credits are handled in RealSource to improve transparency, compliance, and communication with departments.
What’s changing?
In the past, some credits were applied informally to offset the invoice. Moving forward, all credits will be entered into RealSource to offset invoiced items. Most importantly, when a department returns an item and expects a credit, a receiver must be entered in RealSource before a credit can be applied.
Why the change?
This adjustment ensures:
- Vendors receive proper remittance notices showing how credits are applied.
- Departments have a clear and consistent record of returns.
- Compliance reporting remains accurate and auditable.
- Credits are matched to the correct invoice and payment cycle, reducing confusion.
What departments need to do:
- When returning an item, process the return as usual.
- Complete the receiver in RealSource for the returned goods.
- Once the receiver is completed, Accounts Payable can process the related credit memo in the system.
What Procurement Services will do:
- Ensure credit memos are processed in RealSource rather than offset informally.
- Align credit due dates with invoice due dates (or EPD dates, if applicable).
- Report credits weekly to the Controller’s Office, maintaining compliance.
Special notes:
- Amazon credits must have discounts removed, and VCU should not be charged restocking fees.
- If the credit cannot be tied to a specific PO, it will temporarily be assigned to account code 620012 (Office Supplies) until resolved.
📌 Key takeaway: If your department is returning goods and needs a credit, don’t skip the receiver step in RealSource. Credits cannot be applied without it.
Categories Procurement Services