The Accounts Payable system has been modified to allow for the entry of vendor credits through the Vendor Invoice form. This, along with the ability to process vendor refund payments directly into the Accounts Payable system will eliminate the need for making double, or even triple, entries in order to accommodate the vendor return/credit/refund process. Credits for part returns will automatically update inventory counts and values.
Vendor invoice credit processing will help streamline several processes, including…
· Part returns for replacement or credit
· Entering purchases where discounts or credits were included
· Correcting a previously posted invoice that cannot be adjusted for some reason (e.g. fiscal period is closed, etc.)
Vendor invoice credit processing will also make reporting tasks easier since credits processed as vendor invoice credits will automatically be reflected in invoice related payables reports. Using credits on Purchase Orders can also facilitate in the process of tracking items returned to vendors, but not yet credited.
Credit line items can be entered on purchase orders, receipts, and vendor invoices representing vendor credits and/or items being returned to vendors. If inventory is active, an automatic inventory transaction is generated to reduce inventory for the part item being returned.
To enter a credit line item, use a negative number in the Quantity field to represent the credit or return. Note that a negative value may instead be entered for Unit Price for miscellaneous or overhead items, but part credits entries must show the negative value in the Quantity field. All of the calculations on the purchase order and vendor invoice will accommodate the negative items. For example, "negative" sales tax will be calculated for negative taxable line items / invoices.
Invoice posting will create a credit memo in the payables when the invoice total is negative. Credit memos are represented on screens and in reports by the code CRM.
To enter a vendor refund into the system, locate the vendor, open Vendor Account History (F4), and select the "Refund" option. The refund process is very similar to the vendor payment process. Select the register account to receive the refund (e.g. the undeposited funds cash box account in the case of a refund via vendor check), enter the check number/payment reference, select the individual items for which the refund was issued, and post. As items are selected, the refund total is calculated automatically. As an alternative to selecting items, you may enter the refund amount directly. Discounts may be taken (given back in the case of credits) just like when making vendor payments.
Refunds are represented on screens and in reports by the code REF.
If you must also enter the vendor credit to which the refund applies, a refund can be posted and automatically applied to the credit using the Apply Pmt option of the Vendor Invoice form.