Posting a Credit Memo from a Supplier

Rhmoore · ‎May 19, 2020

When posting a credit memo received from a supplier for overcharging material, I have to be on the expense tab instead of the items because we did not return anything and will not affect the quantity in the inventory. Under the expense tab, which account is the correct one to use between COGS (cost of goods sold account), Sales (income account), or Material & Inventory (current asset account)?

john-pero · ‎May 19, 2020

Of the options you are considering I would likely affect COGS since the original purchase would have done just that. The credit is a reverse of the expense. When you pay the bill in th ePay Bills screen you will have to first select an invoice, and then Set Credits to select the credit to use

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john-pero · ‎May 19, 2020

Of the options you are considering I would likely affect COGS since the original purchase would have done just that. The credit is a reverse of the expense. When you pay the bill in th ePay Bills screen you will have to first select an invoice, and then Set Credits to select the credit to use

Rhmoore · ‎May 19, 2020

Thank you for your input. It made sense to me to do exactly that, but wanted to make sure.

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Posting a Credit Memo from a Supplier