Vendor Goods Returns and AP Credit Memo

In this topic, we will look at the process for returning items and receiving credit from a vendor.  We will discuss how and when you create a goods return or credit memo for purchases, and we use a Goods Return Request to streamline the process for returning items or receiving credit from a vendor. 

Summary:

1. A Goods Return is used to return items received on a Goods Receipt PO. If you need to fully or partially reverse an AP invoice, then use an AP credit memo. 
2. To simplify the process, use a Goods Return Request.  The system will automatically determine the appropriate correction document to use. 
3. AP Credit Memos and  Goods Return documents correct both quantities and values. To give a credit without an effect on inventory use the Qty. Without Posting checkbox. 
4. Whenever possible reference the original Goods Receipt PO or AP Invoice when correcting the problem. If the related invoice is closed or if the credit is related to multiple invoices, then you must create a credit memo without referencing a base document.

You can also download the document here for your records.