Vendor credits were designed to issue a credit, normally for damaged material or some other external issue related to fulfillment. Some customers, however, have a need for a vendor return system where material is returned to the vendor in exchange for credit. The difference between these two concepts is that the former does not affect inventory whereas the latter does.

This change is designed to support using a Vendor Credit Memos as Return Documents.

PO and Vendor Credit Memo Screen

Beneath the “Vendor Credit Memo Total” at the bottom of the screen (or “Purchase Order Total” when the PO balance is negative), the checkbox

  • [ x ] Treat as Return Document and reduce inventory

is used to signify that you want to reduce the inventory on line items that contain inventoriable parts. This option is ignored for all other line items.

Enabling the Function

To use Vendor Credit Memos as Return Documents you will have to enable them in your system. Navigate to Setup | System Setup | Bills and check the first or both of these options (depending on your preference about the second option):

  • [ x ] Allow vendor credit memos to be used as return documents (i.e., reduce inventory on parts)
  • [ x ] By default, treat all vendor credit memos as return documents

The second option does not apply and is therefor disabled if the first is not selected.

  • This option only applies to inventoried parts. It has no effect on items entered on the vendor credit memo that are not inventoried parts.
  • The option only appears on Purchase Orders with a negative balance (since those are converted to Vendor Credit Memos and not Bills).
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