Credit Memo with inventory adjustment

[Eric]

We are attempting to record a credit from a vendor for overpayment on items.

How do we record an inventory adjustment / value and create a credit on our
account from the vendor?

ie Paid 100 for item should have paid 75 ... new item value is 75, credit
from vendor is 25.

Thanks in advance

 

[Lance [MSFT]]

There are several options. I guess it depends how you want to show it on the
records.

Here are some possibilities

Edit the bill and correct the item price. Add a comment about the
over-payment. Leave the payment entry as it is. The amount overpaid will
appear as a credit owed to you in the vendor's balance and in his credits to
apply list.

or

Enter a vendor credit memo on the account 'Cash discount taken' In the
profit and loss report the value of cash discount takes gets subtracted from
cost of goods sold. Alternatively, use the same cogs account that sales of
this item are normally recorded to. This will create a vendor credit for the
amount overpaid.

Either way, when you pay his next bill, you use the credits button in the
pay bills form to apply the credit to the bill.

Hope this helps.