Credit Memo from a Vendor

When you get a credit memo from a vendor, you need to create a debit memo in your company file.

To create a debit memo:

• Go to the Purchases Command Center/Enter Purchase and enter the vendor's name and the date. Use a Service layout.
• Enter the vendor credit amount as a negative amount in the amount column. The account you allocate the credit to depends on what the original expense on the PO was. If the charge was for office supplies, you can enter a negative amount for office supplies.
• Once you record this negative PO, it will be found on your Purchases Register/Returns and Debits, available for applying to this vendor's Open Purchases or for receiving a refund.
• To apply the vendor credit, go to your Purchases Register/Returns and Debits. Highlight the debit, and click on Apply to Purchase.
• You can also select the debit from the Purchase Register and select Receive Refund to receive a refund back into your checking account or undeposited funds account. This is only if the vendor sent you a refund check.
• If you have returned items that you had already entered into your inventory, you can enter the credit on an Item PO, entering a negative quantity in the 'Received' column. This will remove the items from inventory. If you get the message "This will value your inventory at less than $0.00" you will have to make an inventory adjustment.