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Hi,
I have a question regarding purchase return order.
What should i do if i have created the purchase return order and credit note sent by vendor?
How can i process both of them? Should i just process the credit note ?
Thanks
Hello,
In my statement:
'the best practice and correct approach is to enter a Purchase Return Order whenever you are returning Inventory to a Vendor. You Post Ship that inventory and when the Vendor give you the Credit Memo, enter that Document No. in the Vendor Credit Memo No. field and Post Invoice. This is the approach I teach all my customers.'
On a Purchase Return Order, you re actually shipping the Item back to the Vendor. When you click Post you see Ship and Invoice.
After this posts it will create the Credit Memo and nothing more is needed.
Hope this helps.
Thanks,
Steve
Hi Steve,
Yes, I got to understand more now.
Erm what do you mean post ship that inventory? Do you mean 'get posted document lines to reverse' in the purchase return order?
So after I entered the Document No. in the Vendor Credit Memo No.field (purchase return order)and post it, am I still process the credit note from vendor?
Hello Wakefield Hospital,
If you receive a Credit Memo from a Vendor and post that Credit Memo and you set the Applies-To Type and No. it will be applied to the Posted Purchase Invoice. You can do this after the fact if you forgot on the Purchase Credit Memo.
If your posted credit memo included the items returned, then NO you do not need to create a Purchase Return Order and associated Credit Memo. If you forgot to include the Items being returned, your only step would be an Item Journal, Positive Adjustment to bring the inventory back. Now you could reverse the Posted Credit Memo and start over with the Purchase Credit Return if you want to keep an audit trail of the entire transaction, which is the proper way to go.
To answer your last statement, the best practice and correct approach is to enter a Purchase Return Order whenever you are returning Inventory to a Vendor. You Post Ship that inventory and when the Vendor give you the Credit Memo, enter that Document No. in the Vendor Credit Memo No. field and Post Invoice. This is the approach I teach all my customers.
Hope this helps.
Thanks,
Steve
Hello,
This is for internal purposes only and to control the inventory (if you send it back or remove it from inventory because it is damaged, etc.).
Thanks.
Thank you. Sorry I am still confused.
So let's say I receive a credit memo from vendor - I process it and post it. So it will be applied to the specified posted purchase documents.
Is it still necessary for me to create a purchase return order or purchase credit memo if I already have the credit memo from vendor?
Can someone explain this sentence? Does it mean every time I receive a credit memo from vendor I have to create a purchase credit memo or purchase return order?
"You create a purchase credit memo or purchase return order in reaction to a credit memo sent to you by a vendor. The purchase credit memo or purchase return order functions as your internal documentation of the credit memo process for accounting purposes or to control the shipping of the involved items"
Thank you so much!
Hello,
Adding to Nitan's reply... Processing a Purchase Return Order will take the Items noted on the Purchase Line and return them to Inventory in the Location noted on the Line and also process, when you Post-Invoice, the Credit Note against the Vendor ledger. If you use Copy Document, off the original Posted Purchase Invoice, when you Post-Invoice, the Posted Purchase Credit Memo will apply to the Posted Purchase Invoice, as show in the Invoicing Fast Tab (applies-to fields).
Hope this helps.
Thanks,
Steve
Hello,
You can have a look here for more information:
docs.microsoft.com/.../purchasing-how-process-purchase-returns-cancellations
I assume the answer is what you are trying to achieve.
Thanks.
Thanks Nitin.
Isn't when you process the credit note, it decreases the inventory back as well?
So I only can choose either purchase return order or credit note to process?
Hi,
It depends you process like, if you want to return the item you received from vendor and want to decrease your inventory back, then choose Purchase return order, or if you want to received the money back from your vendor then choose the Credit note reference to the original PO.
Thanks
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