You usually receive purchase credit memos when you return items to a vendor, but you can also receive them as compensation - a purchase allowance. In addition, you can use a purchase memo to correct an incorrect purchase invoice.
When you post the credit memo, the program creates a posted credit memo. If you have placed a check mark in the Return Shipment on Credit Memo field, posting the credit memo will also create a posted return shipment.
From the credit memo, you can copy all types of purchase documents, quotes, orders, invoices, receipts, and return shipments. This way, the program can fill in the header and lines for you.
If you use the invoicing facilities in the program, it is a good idea to use purchase credit memos too. They make it easier for you to manage your payables.
Open the Purchase Credit Memo window.
Press F3 to create a blank credit memo.
Fill in the No. field.
In the Buy-from Vendor No. field, enter the number of the vendor to which you returned the items.
If you want to post the credit memo to a different vendor than the one specified on the General tab, enter the number of that vendor in the Pay-to Vendor No. field on the Invoicing tab.
In the Posting Date field, enter the posting date.
In the Vendor Cr. Memo No. field, enter the number that the vendor uses for the credit memo you are creating.
If the purchase credit memo will be applied to an invoice that has already been posted, fill in the Applies-to Doc. Type field and the Applies-to Doc. No. field on the Application tab.
On the credit memo lines, enter information about the items that you have returned. You can either fill in the lines manually, or, if you want to copy information from other documents, you have two options for filling in the lines automatically:
You can use the Copy Document batch job to copy an existing document to the credit memo. Use this function to copy the entire document. It can be either a posted document or a document that is not yet posted. This function only reverses costs exactly when exact cost reversing is set up as mandatory in the purchases and payables setup.
You can use the Get Posted Document Lines to Reverse
function to copy one or more posted document lines from one or more
posted documents to the new credit memo document. This function’s
purpose is to allow you to exactly reverse the costs from the
posted document line. This function always exactly reverses the
costs from the posted document line, regardless of whether exact
cost reversing is set up as mandatory in the purchases and payables
setup.
When you use either of these functions (and, in the case of the
Copy Document batch job, when
you have also set up exact cost reversing as mandatory in the
purchases and payables setup), the program creates a link to the
original item ledger entries in the Appl.-to Item Entry field to ensure that
the costs are copied from the original posted document.
If the line has item tracking, the program cannot provide exact
cost reversing, because the reservation is not available from the
purchase credit memo document. You can use the purchase return
order for exact cost reversing of an item-tracked line.
If the credit memo will be applied to a specific posted invoice, you can open that invoice in the Posted Purchase Invoices window.
If a vendor is also recorded as a contact in the Relationship Management application area, and if you have specified an interaction template code for purchase credit memos in the Relationship Management Setup window, when you click Print to print the credit memo, the program automatically records an interaction in the Interaction Log Entry table.
Exact cost reversing of item tracking lines is not available from the Purchase Credit Memo document. If you would like to use exact cost reversing with item tracking lines, use the Purchase Order or Purchase Return Order document instead.
Correction of Incorrect Posted Documents
Copying Information from Purchase Documents to Purchase Credit Memos
Viewing Purchase Credit Memo Statistics
Viewing Additional Information about Purchase Credit Memos
Assigning Item Charges to Purchase Documents