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How to maintain the Vendor Credit Memo

Vendor credit memo is used to record the returns to the vendors whether on the direct purchases or on the existing invoices which have not been paid.

The procedure of vendor credit memo is given below.

Step no1. Go to the task bar menu and click on the vendor credit memo.

The following window will appear.

Step no 2. First thing is to enter the “Vendor ID” in customer ID field. It is the ID of the vendor from the purchases has been made. When you select the vendor the “Remit to” field will show the detail of the vendor.

Step no 3. Enter the date of returning goods in “Date” field.

Step no 4. Enter the reference number in “Credit no” field. This field is used to give a unique or different code to each transaction for identification.

Step no 5. The “Term” field will be filled automatically when you select the vendor. These terms are payment terms and created when vendor account are created in maintain menu.

Step no 6. Enter the account payable ID or select it from the list of chart of accounts in the “A/P Account”. This is the account to which the amount due of the purchases will be charged.

Step no 7. Select the invoice number from drop down list on the Apply to invoice no tab to which you want to charge the returns.

Step no 8. The “Item field, Quantity field, Unit price field, and Description field”will be automatically filled.

Step no 9. Enter the number of items you want to return in the “Returned” field.

Step no 10. Enter the “GL Account” which you want to use for this return.

Step no 11. “Amount field” will be automatically filled.

Step no 12. Click the “Save” button to save the transaction.