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Vendor Credits

  • 1.  Vendor Credits

    Posted 23 days ago
    Hello all,

    I have an issue that I can't seem to figure out. I have a vendor with a credit due to us. As we requested, they sent us a check instead of applying the credit to future invoices. How am I able to record the deposit and apply it against the credit? We usually record our deposits through Bank Transactions but I am unable to find a spot there to do it. I would have thought it would be somewhere in Purchasing but I can't seem to find where it can be done. Can someone please give me some guidance? Any help is much appreciated!

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    Lauren Leon
    Chicken Salad Chick
    Auburn AL
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  • 2.  RE: Vendor Credits

    TOP CONTRIBUTOR
    Posted 23 days ago
    Hi @Lauren Leon

    You can simply create a debit memo to apply against the open CM for this vendor.  Whatever distribution account you use on the debit memo you can use when you enter the check into the Bank Transaction window to offset the debit memo.  This will get everything recorded correctly for you.  Let me know if you have any questions.​

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    Kristen Hosman
    Dynamics ERP Consultant
    Briware Solutions Inc.
    Pine, CO
    ------------------------------



  • 3.  RE: Vendor Credits

    GPUG ALL STAR
    Posted 23 days ago
    @Lauren Leon

    I am in total agreement with @Kristen Hosman. This is the way to handle the check that you have received.​​

    ------------------------------
    Bert Green
    GP Developer/GP Administrator
    Berger Transfer & Storage, Inc.
    Saint Paul MN
    GP2015/MR CU11
    GPUG All Star 2017
    ------------------------------



  • 4.  RE: Vendor Credits

    Posted 21 days ago
    Edited by Lauren Leon 21 days ago
    @Kristen HosmanThank you so much! This is very helpful!​

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    Lauren Leon
    Chicken Salad Chick
    Auburn AL
    ------------------------------



  • 5.  RE: Vendor Credits

    Posted 20 days ago
    @Kristen Hosman How do I create a debit memo? I figured it would be one of the options in the drop down when I am in Transaction Entry but it's not. Thanks!​

    ------------------------------
    Lauren Leon
    Chicken Salad Chick
    Auburn AL
    ------------------------------



  • 6.  RE: Vendor Credits

    TOP CONTRIBUTOR
    Posted 19 days ago
    ​Hi @Lauren Leon

    My apologies for cutting in - there isn't a debit memo function in Purchasing, it's only in AR. Please see my response at the end of this thread on how to work around that.​

    ------------------------------
    Shari Bruno
    Accounting Operations Manager
    Bible League International
    Crete, IL
    ------------------------------



  • 7.  RE: Vendor Credits

    TOP CONTRIBUTOR
    Posted 21 days ago
    Edited by Shari Bruno 21 days ago
    ​Hi @Lauren Leon

    You can also process a Return that will allow you to credit whatever account is needed, and create a Bank Deposit Entry​​:


    I like this approach because it leaves an entry in the vendor record as a Return which helps us separate actual credit memos from checks/cash received.

    ------------------------------
    Shari Bruno
    Accounting Operations Manager
    Bible League International
    Crete, IL
    ------------------------------



  • 8.  RE: Vendor Credits

    Posted 21 days ago
    @Shari Bruno Thank you, Shari! So if I want to do it this way, do I enter the amount in Return on the left side? Also, how does the deposit get recorded? Thanks!​

    ------------------------------
    Lauren Leon
    Chicken Salad Chick
    Auburn AL
    ------------------------------



  • 9.  RE: Vendor Credits

    TOP CONTRIBUTOR
    Posted 21 days ago

    ​Hi @Lauren Leon

    When entering a Return, input the amount into Returns field on the left, then on the right side input the amount into the Cash or Check field. Both fields will open a new window that then allows you to choose the Checkbook ID for the checking account where the deposit will be made, as well as assigning a unique Document No. It is important that the Date on the Payables Cash/Check Entry window be the same as the system date for GP.

    The Payables Transaction Entry Distribution window will have a Credit line for PURCH where you can enter the GL that you want credited, and will default a CASH debit for the checking account that will receive the deposit.

    After posting a Bank Deposit Entry will be created and you will process the deposit as usual.



    ------------------------------
    Shari Bruno
    Accounting Operations Manager
    Bible League International
    Crete, IL
    ------------------------------



  • 10.  RE: Vendor Credits

    Posted 21 days ago
    @Shari Bruno Thank you so much for taking the time to show me how to do this. One more thing, so it looks like with that debit entry to cash, the deposit is being recorded there. Is that right? If that is the case, then where will I be able to debit the expense account that I credited the return to?​ Does my question make sense?

    ------------------------------
    Lauren Leon
    Chicken Salad Chick
    Auburn AL
    ------------------------------



  • 11.  RE: Vendor Credits

    TOP CONTRIBUTOR
    Posted 21 days ago
    ​Hi @Lauren Leon

    Your question makes sense. You're correct, the Return is recording the GL portion of the bank deposit but not the deposit itself. When you post the Bank Deposit Entry that was created by the Return the deposit will be recorded to the checkbook, which is then reconciled to the bank statement. There is no other offset to that because the transaction ends as a DR to cash.

    As to the debit to the expense account, that happened when you originally processed the invoice. The credit of the return is lowering the total expense the same as it would if a credit memo was applied.

    Does this help?

    ------------------------------
    Shari Bruno
    Accounting Operations Manager
    Bible League International
    Crete, IL
    ------------------------------



  • 12.  RE: Vendor Credits

    Posted 21 days ago
    @Shari Bruno A couple of things here.

    1) We record our deposits through an increase adjustment in Bank Transactions, not Bank Deposit entry. Does this change what you're telling me I should do?

    2) We already have a credit memo entered for the vendor. So I have already offset the expense account. ​If I book the credit to the expense account again, it will leave the account with that credit sitting there.

    Thank you!!

    ------------------------------
    Lauren Leon
    Chicken Salad Chick
    Auburn AL
    ------------------------------



  • 13.  RE: Vendor Credits

    TOP CONTRIBUTOR
    Posted 21 days ago
    ​Hi @Lauren Leon

    Since you record deposits as Increase Adjustments this does change what I suggested.

    Purchasing doesn't have a Debit Memo function like AR so -

    If the credit memo is still open in the vendor record:
    Create an invoice for the vendor that reverses the coding of the credit memo - credit the debit account and debit the credit account.
    Post the invoice and apply it to the credit memo

    If the credit memo is in history and already applied to the invoice:
    Create a General Journal that reverses the credit memo

    Once the credit memo is taken care of create an Increase Adjustment for the amount of the check. This way you haven't credited the expense GL account twice.


    ------------------------------
    Shari Bruno
    Accounting Operations Manager
    Bible League International
    Crete, IL
    ------------------------------