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Good day,
I have a credit memo that applies to an Inventory item. The PO is in history so I can't do a Return with a Credit, neither the other return options. I can pull up the item number and/or the PO but not the receipt number.
The items were physically returned to the supplier, is there another option, any ideas would be appreciated. The credit was passed to AP, but Inventory is suggesting to void the invoice and I know that may not be regarded as the best practice.
Regards
Rosemary
Hi Rosemary-
From the situation you've described, I think it really all depends on the timing of everything and what happened to the inventory.
If the inventory was all sold off or used in some way, then you'd need to get that inventory back (a SOP return if sold through sales, for example). Then you'd use "Inventory with Credit" to get it back out to the vendor and put a credit memo in AP. If you checked the box to Replace Returned Goods, this would create a new PO to receive anything from the vendor.
If the inventory was received and matched, but never used, it would be Return with Credit. That will get the inventory out and create a credit memo in AP. If you checked the Replace Returned Goods box, there would be a new PO created to the vendor since the PO was in history. If you checked the Replace Returned Goods box and the PO was still in the open files, it would just reopen the PO and that particular line item so you could receive on it again.
The other two return types (Return and Inventory) don't create a credit memo. They're just used to back something out in the case of posting a shipment transaction wrong (return) or return inventory to a vendor (inventory) that has previously been used and then received back somehow to your own inventory.
I hope this helps.
Thank you.
Joe
A credit memo is a posting transaction that can be applied to a customer's invoice as a payment or reduction. A delayed credit is a non-posting transaction that you can include later on a customer's invoice. A refund is a posting transaction that is used when reimbursing a customer's money. TelltheBell
Thank you for your response, I will print the respective posting journals as per the transaction to verify what was updated and pass to Inventory.
Every quarter POs are moved to history unfortunately the credit came to Inventory after this date, because the PO is in history.
If the PO was not in history which of the return option would have been appropriate, 'Inventory with Credit'?
Regards
Rosemary
Hello,
It is difficult to say for sure what the best solution is without seeing all the data, however if a credit memo has been issued, and you are not able to do a return with credit, then you could just adjust inventory as was suggested, but you would want to ensure that the original transaction did post all the way through to the GL, Inventory, and Payables. So that if you make an adjustment to inventory, that you also post that through to the GL as well, so that the HITB (Historical Inventory Trial Balance) report and GL are in balance. If you need assistance with this further, I would encourage you to reach out to your colleagues, your partner, or open a support case with Microsoft to assist you further to ensure that things are adjusted appropriately and stay in balance.
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