Purchase credit memos
A purchase credit memo can be used to reverse a vendor transaction. The following list describes some reasons why a purchase credit memo is created:
Error in invoicing, such as the wrong item, wrong vendor, incorrect unit costs, or incorrect quantity.
Faulty goods, such as goods that have production flaws, are damaged, or somehow the purpose for which the goods are meant is not fulfilled.
The order was canceled, but the invoice was completed.
Credit memos are a sound accounting method to reverse an invoice transaction that was posted with erroneous information.
When a credit memo is required for a posted purchase invoice, depending on the scenario, there are several methods that you can use to process the adjustment. The following list includes information about these methods:
Correct: The correcting method involves reversing a posted purchase invoice and automatically creating a purchase invoice with the same information that you can correct before posting. The original posted purchase invoice is automatically cancelled. The purchase credit memo is automatically created and posted. Typically, this method is used when an accounting error has been made or when a change to an Account Set is required on the purchase invoice.
Cancel: The canceling method involves creating and posting a purchase credit memo that reverses the original posted purchase invoice. The original posted purchase invoice is automatically cancelled. Typically, this method is used when a posted purchase invoice is input in error or if the invoice was duplicated.
Create Corrective Credit Memo: The creating a corrective credit memo method involves creating a credit memo for a posted purchase invoice that you complete, and then post manually to reverse the posted invoice. Typically, this method is used when a partial amount is being refunded.
Adjustments can only be made to posted purchase invoices that are open. After a posted purchase invoice is closed, you cannot correct, cancel, or create a corrective credit memo from the invoice. A posted purchase invoice is closed when the invoice is paid, or the invoice has been corrected or cancelled. If a posted purchase invoice is closed and a purchase credit memo is required, you must manually create the credit memo.
Note
Note:
When a posted purchase invoice was created from a purchase order, you may not be able to use each of these methods.
To learn more about the Sparkrock 365 purchase credit memo functionality, in the following table, select the links.
| To | See |
|---|---|
| Learn more about purchasing. | Purchasing |
| Learn how to view whether a posted purchase invoice is closed, cancelled, or corrective. | View whether a posted purchase invoice is closed, cancelled, or corrective |
| Learn how to correct or cancel unpaid purchase invoices. | Correct or cancel unpaid purchase invoices. |
| Learn how to create a purchase credit memo. | Create a purchase credit memo |
| Learn how to view a purchase credit memo. | View a purchase credit memo |
| Learn how to view a purchase credit memo that has been posted in the Posted Credit Memos page. | View a posted purchase credit memo |
| Learn about purchase credit memo approvals. | Purchase credit memo approvals |
See also
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