It's not a dumb question at all, especially if it's a process you either haven't done or don't do often!Įntering a credit memo on the vendor account very similar to entering a non PO related invoice (think G&A type expenses).ġ.) Navigate to Purchasing>Transactions>Transaction Entry. We have a credit memo for supplies that were purchased on a PO, the original invoice has already been paid. A $100 credit may not warrant extra steps whereas a $10,000 credit might.ĭoes that make sense? If you have questions, just let me know. The other bells and whistles so to speak (revaluing inventory, affecting project expenditures, etc.) will really depend on if you want to do the extra steps and likely the dollar impact of that credit memo. sold, used in an assembly or MO, etc.), then you can still create a credit memo on the vendor account where the debit is to AP and the credit is to an expense account or another posting account as you deem appropriate.Īt the end of the day, creating a credit memo on the vendor account that sits open with the credit being to an appropriate expense or offset account is the most simple approach. If the items are inventory but you either do not want to reduce the cost layer value or the layer has already been consumed (i.e. Then create a credit memo on the vendor account with the debit to AP and the credit to EITHER the appropriate expense account or the inventory offset whichever you would consider appropriate in your circumstances. Take note of the inventory offset account (should be a credit if you're reducing the value of inventory).
First, complete an adjust cost utility to revalue that particular layer. If the item was inventory and you wish to reduce the cost layer value, the recording is two fold. If they were inventory items, proceed to question 4.Ĥ.) If the items were inventory items, do you want to see the reduction on the item received valuation (assuming it hasn't been consumed)? The credit will sit open on account until there is an invoice to offset against it. If they were non inventory, then I would book the credit memo where the debit is to AP and the credit is to the appropriate expense account. If you don't care to see the reduction on the project itself or if you aren't using project, move on to question 3.ģ.) Were the items received on the PO inventory or non inventory? log to reduce the expenditure, but you'd have to ensure that the distribution account on the cost category is what you'd want it set to. You may also need to actually create a credit memo to sit on the vendor account if it is to be applied to a future invoice. If you're using project accounting, and you want to see the reduction, you could record a misc.
If you're using project accounting and will receive funds back or you're NOT receiving money back, proceed on to next questions.Ģ.) Are you using Project Accounting? If yes, do you want the credit memo to reduce the expenditures associated with the project? I'd wait for the funds to be returned and record a debit to cash and a credit to the appropriate expense account. If a monetary refund will be issued, I would not create a credit memo at all. 1.) will the Vendor be issuing a monetary refund or is the credit to sit on your account to be used at a later date?
0 kommentar(er)
