How to Make Vendor Credit Memo

(Sales Return)

 1)    The “Credit Memo” is a document issued by the vendor (seller) to the buyer (customer). Vendor usually issues a Credit Memo for the same or lower amount than the invoice and then repays the money to the buyer or sets it off against a balance due from other transactions. To go to the vendor credit memo we follow the given procedure.

1)      To go to the “Vendor Credit Memo” we first open the company and then go to the “Task” and select the 12^th option. The following window will appear.

2)      Now first we have to select the vendor from existing vendors and vendor ID will appear.

3)      After selecting the vendor id the most important thing is to mention the “Date” along with “Credit No”.

4)      In this window there are two tabs “Apply to purchases” and the 2^nd is “Apply to invoices”. Basically these tasks for the purpose of return goods to the vendor or goods out of purchases are returned back to the vendor. It means it is maintain by the vendor and against the credit memo which we explained in the credit memo window. But in the Apply to Invoice for those vendors against them an invoices or purchase order or made and goods are received to we and we returned goods back to them.

  

5)      The vendor received the goods which customer returns him. Now talk about the Apply to Purchases tab, in this we record the return goods to vendor against which no invoice or purchase order has been made. So by simply selecting the vendor and write the quantity of returned goods and amount we have to record this transaction.

     

6)      Now we have to save this vendor credit memo for that purpose we press the button “Save” and for opening this vendor credit memo again the same procedure apply which we use in case of a payment, receipts, credit memo means we press the button “Open”.

7)      To check the change now just click on the report and go to the Account Payables and see the ledger.