You may agree with your vendor to accept compensation for a purchased item in the form of a deduction from the original purchase order cost.
You could also use this procedure when dealing with vendors of services. An example could be a claim to a shipping agent to cover damages incurred during shipment.
At this point, you have received the item.
Create a purchase return order for the vendor.
On the first line, in the Type field, select Charge (Item).
In the No. field, click the AssistButton to the right and select the appropriate number from the Item Charges window.
Fill in the Quantity field.
In the Direct Unit Cost Excl. VAT field, enter the amount equivalent to the purchase allowance.
Click Line, Item Charge Assignment.
The Item Charge Assignment (Purch) window appears.
In the Qty. to Assign field, enter the same amount that you entered in the Quantity field on the relevant purchase return order.
When you post the purchase return order, the program subtracts the purchase allowance from the cost of the original purchase entry.
Creating a Purchase Return Order