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Credit Purchase Orders
This article shows you how to return items back to the manufacturer or distributor using a Credit Purchase Order. Using this feature adjusts your inventory, gives correct Cost of Good Sold entries, and provides a tracking device for your accounts payable, in order to be sure you get a credit card from your vendor.
Important! Once a credit PO is created for a serialized item, the item can no longer be modified on the original PO, even if you void the Credit PO.
Topics in this article include
Getting there
How to get there
Expert: Program Menu > Purchase Orders
Elite: Left Menu > Purchase Orders
Once a credit PO is created for a serialized item, the item can no longer be modified on the original PO, even if you void the Credit PO.
1. Select Tools.
2. Choose New Credit PO.
3. Enter the Vendor information and click OK. You can do this manually or select the All Vendors button and select from your listing.
4. Select the item you are returning by clicking on one of the four boxes in the lower left corner. You can click Items for Vendor to see a list of what you bought from them previously. Otherwise, you can click Inventory Item or Non-inventory item.
5. After selecting the item to be returned, you will be prompted to enter the quantity returned. You must enter a negative number; i.e. put the minus sign (-) in front.
6. Now enter each price, not the total. If the vendor is charging a restocking fee, you need to lower the price accordingly. For example, if you paid $75 for an item and there is a 20% fee, enter the price as $60. If it is a flat cost, you can enter it in the Misc. field in the lower right corner.
7. Enter in the Expense to, the G/L account, and Line Comments as applicable.
8. You can enter the shipping cost in the Freight field in the lower right corner. If the vendor is reimbursing you for the shipping fees, you can enter a negative number.
9. When you are finished, click OK.
10. Once you have returned the items to your vendor make sure you use the Receive Items From PO function to remove them from your inventory.
Linked Credit Purchase Orders
A credit PO can also be created and linked to the original PO the items were received on. Find the PO under 'Closed' or 'Posted' tab in the grid. Right click and select 'Create Credit PO'. Follow the same steps as above. The PO number will be the same as the original, just the next in the series.
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