The following changes were made to Vendor Credit Memos after it was initially released.

• Control 4.4
  • using_vendor_credit_memos_as_return_documents

Vendor Credit Memos (VCMs) are used to adjust the vendor credit balance in the vendor record. The vendor credit balance may then be applied to bills to offset the balance due. This feature is available in version 4.2.

Vendor credit memos work like negative bills. That is, the amount entered on each line item will actually credit (decrease) the expense account rather than debit (increase) the expense account. The total amount will then be debited to a system asset account called “Vendor Credits”.

To add a new Vendor Credit Memo, click on Vendors on the Main Toolbar, select new, and click New Vendor Credit Memo. You will be brought to the screen below, which will allow you to create a new vendor memo.

At the top of the screen, the user must select a Vendor to create the memo for. The user can also select a credit date.

The following must be entered on the line item:

• No. This is the number of the line item.
• Item Type. This displays the item type.
• Item Name. This is the name of the item.
• Description. This field displays the description of the item.
• Expense Account. This is the expense account that the item uses.
• Qty. This is the quantity of the item that is in stock.
• Qty Billed. This is the quantity of the item that has been billed.
• Units. This displays the unit that the part comes in.
• Unit Cost. This is the item's cost per unit.
• Total Cost. This is the total cost for the part.
• SKU. A code number assigned to an item for inventory.
• Packing Size. This displays the packing size for the item.

There is also a box to type a memo on the credit memo and a place to insert a reference number.

Clicking on the Vendor Tab will display information about the vendor. The Vendor's name is displayed. The user can also view all of the vendor's information by clicking “View Vendor”.

The Vendor's contact's name is also displayed to the right of the screen. Beneath his or her name is their contact information, including their primary number and email address.

On this tab, the name of the employee that entered the memo is shown. The selected due date is also shown.

Also the payment terms and payment information is displayed.

The Vendor Credit Memo Total is broken down into the following:

• Parts total
• Expenses total
• Line Item total
• Taxes

At the bottom of the window, there 2 separate note boxes. The first box is for Vendor Credit Memo notes. The second box is for Internal Notes that will not appear on the vendor credit memo.

This tab allows the user to look at activities. On this screen, the user has the option to select which activities should be tracked. There are many activities that can be tracked, including scheduled queries, payroll, and deposit made. The user can choose to track all activities or only certain ones by checking the corresponding boxes next to the activity. You can also right-click in the Activity display area and use Column Chooser to select which columns you would like to see.

Some vendors allow for a discount to be taken for early payment on a bill. This early payment discount can be automatically calculated in Control through the proper use of Vendor payment methods. This feature is available in version 4.2.

You can see the discount added to a bill by looking on the Items Tab of a bill.

To use Bill Discounts, they must be enabled through Accounting Setup in Control. By clicking on Payment Terms, you will see a check box that reads “Allow discounts for early payment.” The user is then able to set the terms for the discount, such as the number of days the payment must be early and the percent discount the vendor gets for paying early. After the terms have been setup, you can then edit a vendor's company record to use that payment term.