24.1 Introduction

Debit memos entered are applied to outstanding vouchers when payables checks are written. A debit memo is not applied until the pay date of the debit memo is past, so it is possible to defer a debit memo until some date in the future.

Choose Data Entry, Cash Disbursements, Make Cash Disbursement List. This process first finds all outstanding vouchers for a vendor that are to be paid. It then finds all outstanding debit memos for that vendor and subtracts those from the total amount due the vendor. If the debit memo total is greater than the amount owed, the debit memo is reduced by the amount owed, and the rest of the debit memo is held until more vouchers come due.