Vendor Credits

[daveparrish]

I have a situation where vendors give us credits sometimes for special orders, like the special order is 120.00 and they charge us 100.00 so basically we are getting a credit for 20.00 what is the best way to handle the credit?
Sometimes they may just give us a credit for meeting sales goals how do I apply them?
Also sometimes special order items are taken from our inventory and they give us a credit for them.
Another thing is we may return an item to a vendor that did not have a purchase order how can we handle that.
Thanks
Dave

[agaluski]

I would create a G/L account to track the credits - and enter a supplier invoice to the G/L account.
Whe you say you return an item that didn't have a purchase order - how did you get the item into your system?

[daveparrish]

I would create a G/L account to track the credits - and enter a supplier invoice to the G/L account.
Whe you say you return an item that didn't have a purchase order - how did you get the item into your system?

The item was purchased previously and may have been from a different vendor.

[agaluski]

What requirements do you have for returning the item - just reduce your inventory? Or get some credit from the supplier?

[daveparrish]

What requirements do you have for returning the item - just reduce your inventory? Or get some credit from the supplier?

Just some credit from the supplier.

[agaluski]

You can enter an inventory adjustment to remove the inventory. Then enter a supplier credit against the same adjustment account. Your inventory will be reduced in the system and inventory gl account) by the cots of the item * the quantity. Your A/P will be reduced by how much your vendor credits you. The difference will remain in your adjustment account