Vendor Credit Memo

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Vendors that owe you a refund will sometimes send credit memos for you to use at your discretion. The process is almost identical to entering a vendor invoice. The main difference is that the account payable lines will be entered with negative values. If the amount of the account payable is negative, the invoice type will automatically switch to credit memo. 
 
 
 
Summary of steps:
  1. Create a negative Account payable
  2. Click the "Apply credit Memo button
  3. Apply to open Accounts Payable

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3 Comments

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  • 1
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    Lloyd Leanse

    Sometimes a vendor will send a refund check to close out a credit memo. We record refund checks as Accounting Seed cash receipts. Is there some way (even perhaps a slightly roundabout way) to apply that cash receipt to a credit memo?

  • 0
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    Ryan Faulkingham

    Hi Lloyd,

    There is a round about way, but I want to mention that we do have a more seamless way on our roadmap. 

    The work around is to create a billing to close out the cash receipt and then to create a payable to close out the vendor credit memo. The related GL accounts can just be a clearing liability account so that you don't actually record any revenues or expenses. 

    Once the billing is created, apply the cash receipt to it. Once the payable is created, apply the vendor credit memo to it. 

    Thank you,

    Ryan 

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    Jeanae Remala

    Glad to hear that a better alternative is in the works, as it's painful to have to create two dumby transactions do do multiple postings to record a small check from a vendor.  It cost more in our labor than the amount of our refund. 

    Any idea what the time frame is on this?

    Thanks Ryan!

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