5.2.5 Debit Memo

Overview

Debit memos are commonly used in various business transactions, such as in accounts payable processes or when correcting billing errors.

Debit Memo List

• List of all the debit memo and will also show the overview of the transactions
• Here, you can also filter the Start and End Date of the transaction and the button to add a new Debit Memo.

Debit Memo Detail

1. To add a new Debit Memo, Go to Purchases then click Debit Memo. After that, click Add that can be seen in the Debit Memo List.

2.  Fill out all the needed information for the Debit Memo Detail like,

• Currency
• Exchange Rate
• Manual No.
• Document reference
• Remarks

3. To add the Debit Memo Line , Click Add button on the right part of the page under the lines tab. Choose RRNumber for accounts payable processes or correcting billing errors.

4. If the user will Adjust the RR, the user can select that RR by clicking on the RR Number.

5. Once clicked it will pop up all the RR that has not yet Disburse.

6. To add that RR, click the pick button. Once picked, the following fields will automatically populated :

• Account
• Article
• Amount → you can change the amount based on the adjustment of the Receiving Receipt.

7. Once the Debit Memo line item is okay, click the Save button and close the Add Debit Memo line window.
8. Review everything in the Debit Memo detail and once okay, click the Save button to save the details. To have an effect with the Accounts Payable, click the Lock button.

Important: If you forget to lock the Debit Memo transaction and quickly click the Close button, you’ll see a popup asking for a confirmation:

• Press Yes button if you want to automatically save and lock the Debit Memo transaction upon closing.
• Press No button if you prefer not to save and lock the Debit Memo transaction upon closing.

Debit Memo Transaction via Upload Template

1. To add a Debit Memo Transaction via Upload Template, go to Debit Memo List then Click Functions
2. Click Download DM File Format
3. The excel file will be downloaded. This is the file format where you will edit, or encode the details that you need to Debit Memo.
   3.1 In the Excel file:

1.    Manual Number should be unique per transaction, alphanumeric and Special transaction, should not exceed 255 characters.

Example: 1‘23`4!5@6#7$8%9^0&a*b(c)d_e+f=g{h}i[j]k|l\m/n:o;p”q<r>st?u v.w
 – if the Manual Code starts with 000, don’t forget to put an apostrophe (‘) at the beginning of the Manual Code.
Example: ‘00000111231414

       – if the Manual Code starts with a number but exceeds more than 10 digits, format the cell to Text to show all the numbers.

                Steps on how to change the format to Text:
1. Right Click the Cell
2. Click Format Cell

3. Choose Text

4. Click OK
5. Then reselect the field

    B. Supplier Code Add supplier code

C. Document Reference should be unique per transaction,alphanumeric and special characters should not exceed 255 characters.
Example: 1‘23`4!5@6#7$8%9^0&a*b(c)d_e+f=g{h}i[j]k|l\m/n:o;p”q<r>st?u v.w
       – if the Document Reference starts with 000, don’t forget to   put an apostrophe (‘) at the beginning of the Manual Code.
Example: ‘00000111231414

       – if the Document Reference starts with a number but exceeds more than 10 digits, format the cell to Text to show all the numbers.

                Steps on how to change the format to Text:
1. Right Click the Cell
2. Click Format Cell

3. Choose Text

4. Click OK
5. Then reselect the field

D. Remarks –  in this column are basically the remarks for the whole transaction, it should be alphanumeric and Special characters should not exceed 255 characters.

E. Particulars – in this column this is basically the remarks for each item line, it should be alphanumeric and Special characters should not exceed 255 characters.

F. Line Amount – Input amount to correct/adjust customer bill

G. Account  – Input Account Code in column

H. Currency – Input specific Currency in column

I.   RR Number – Add RRNumber

4.Go back to Debit Memo list

1.  Click Functions
2. Click Import Debit Memo
3. After Importing, Check Debit Memo list
4. Lock Transactions

Cancel Debit Memo Transaction

When you need to cancel a Debit Memo, it’s important to follow these simple steps:

1. Log In: Visit your easyFS domain and login with your username and password.
2. Find your Debit Memo: Navigate to the Purchases, then Debit Memo. You will be redirected to the Debit Memo lists.

3. Locate the Right One: From the Debit Memo list, you may use the search bar to look for the right Debit Memo  you want to cancel. You can search using the Debit Memos DM NUmber, Manual Number, Document Reference, etc.

Take note: Don’t forget to change the Start Date and End Date to your Debit Memo’s transaction date to display the correct result.

4. Open the Debit Memo Detail: Click the Edit button to open the Debit Memo detail page.

5. Cancel the Debit Memo: To cancel your Debit Memo transaction, look for the Cancel found on the upper-right part of the page, then click.

6. Confirm Canceling: After you click the Cancel button, there’s a Cancel Debit Memo window. If you’re sure you want to cancel your Debit Memo transaction, click the Cancel button.

7. Check It’s Done: After canceling, make sure you get a success toast message confirming it’s canceled successfully. It is found on the bottom right of the page.

8. Let Others Know(if needed): If you believe canceling affects other people, it’s a good idea to inform them.
9. Keep Track: Remember to make a note somewhere that you canceled the Debit Memo, just in case it is needed later.

5.3 Sales Transaction Module

The Sales Module includes the whole Sales Cycle from adding a Customer up to generating Invoices and Sales Reports. Here’s the flow of the Sales Module

Customer Creation/Management

• Create and manage customer records within the system, including contact information, credit limit, credit terms, TIN (Tax Identification Number), Type of Business
• Assigning of Manual Code unique to customer for easy tracking.

Sales Order

• Generate sales quotes or orders for potential customers, detailing the products or services offered along with prices.
• Share the quote or orders with the customer for approval.
• Once the customer approves the quote, convert it into a sales invoice.
• The sales order includes details like the quantity, price, and description of the products or services.

Order Fulfillment

Sales Invoice

• Generate a sales invoice based on the delivered products or services.
• The invoice includes the total amount due, payment terms, and other relevant details.
• Prepare and deliver the products or services based on the details specified in the sales order.
• Update inventory levels if applicable.

Accounts Receivable

• Record the sale in the accounts receivable ledger with the Aging of Days
• Accounts receivable represents the amount the customer owes for the delivered goods or services
• Formula for Accounts Receivable Report is Sales Invoice less Collection less Credit Memo

Collection/ Payment

• Receive payments from the customer against the issued invoice.
• Apply payments to the corresponding accounts receivable entries.

Credit Memo (if necessary)

• If there are adjustments, returns, or discounts, issue a credit memo to adjust the accounts receivable balance.
• Update records to reflect the credit memo.

Sales Module Reporting and Analytics

• Monitor and analyze sales performance, accounts receivable aging, and other relevant metrics.
• Generate reports to gain insights into the financial health of the sales function.
• Integration with General Ledger, Income Statement and Balance Sheet.

Following this flow, businesses can effectively manage their sales transactions, monitor cash flow, and maintain accurate records of customer interactions. The integration of these steps within the accounting system streamlines the financial processes associated with sales and contributes to a more efficient and accurate overall accounting process.