Best Practice for Vendor Returns

Tip: First, ensure the Vendor you're sending the parts back to has been set up as a non-taxable customer.

1. Open document to "sell" the part(s) back to the vendor, set up as a customer.

2. Add the part(s) to send back to the vendor.

Note: the Sell Rate should match the original Cost of the part. If you know the vendor will be issuing a partial refund, you can enter the amount you're aware they will be refunding you as the Sell Rate. Ex: If the part was originally $20 but they will give you a 90% refund at $18, you can go ahead and enter the Sell Rate at $18.

3. Close the return invoice. Ensure no tax has been added.

4. Click "OK"

Tip: Tip: You may print a picking list from the Invoice Document > Print > Print Picking List.

5. To enter the payment from the vendor, navigate to Accounting > AP Invoice Entry.

6. Click "AP Invoice Entry"

7. Click "Next Journal #"

8. Click "Save"

9. Enter AP Invoice Details, including the Vendor you're receiving payment from, the credit invoice #, and the amount of the credit as a negative to indicate that it is a credit.

10. The GL Account # used in AP Invoice Distribution will be Accounts Receivable.
Enter the Customer # and AR Invoice # from the invoice where you "sold" the parts back to the Vendor set up as a Customer.

11. Post credit invoice.

12. Click the "Customer #" field.

13. To review how the credit AP Invoice was applied to the AR Invoice for the vendor/customer, navigate to Accounting > AR Inquiry > Search for Customer (vendor).

14. To review how the vendor credit is reflected in AP, navigate to Accounting > AP Inquiry > Search for Vendor.