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Purchase Credit Memos

Vendors Accounting
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A beginner video is for people with little or no experience with Business Central. It is explained thoroughly and is easy to understand. Beginner Watch the "basic" videos to take the tour of the main processes of Business Central. This is the basic, need-to-use functionality. The Basics
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Presenter: Sune Lohse, Chief Strategy Officer

How to create a purchase credit memo in Business Central?

In Business Central I could create a purchase credit memo for undoing something that I have bought, or sending items back to the vendor. Let’s see how this work.

This is what happens in the video

First of all, I will enter my purchase credit memo list. And I have nothing here yet, so I will create a new credit memo. Like this, and I knew my vendor name that I have going to send either something back to or just to get some money refund. I will select my vendor name and the normal approach would be to copy the existing posted document.

From my process tab, I will select “copy document” and in my copy document, I could select posted invoice, received or whatever. And I have to be aware that if I, for instance, select a posted receipt, the pricing might not be correct because the correct pricing is entered on the purchase invoice. So the normal thing would be to copy a posted invoice.

And I can select on my list, from this vendor number, the correct invoice that I’ll find here, and I’ll just take the last one, which I might have some error on. And normally I wouldn’t recalculate line because I would like to, the pricing to go, exactly back like they came in, to equal it. I could even change the quantity on the line, saying maybe I will only send 200 of those items back and 10 of the other.

And this one might be correct, so I would just delete the line. So the point of copying the document would be that I have my tracking to the original invoice so I can see where it’s coming from, my purchase credit memo. Maybe I will not get the freight back either, so I will just delete that line too. And I need to fill in my vendor credit memo number in the header.

So it’s the number on the credit memo that I should receive from my vendor, of course before posting it here. So this way I can fill in the document by copying and changing, and then just posting the document like a normal purchase invoice and this of course, will post opposite to the normal purchase invoice, so everything rolls back. After posting it, it’s just if I want to open my posted document, and I can open my posted credit memo here and navigate on the memo if I want to see the entry it created.

For example, I would suggest that it has created some value entries via the entry, so now that we’re rolled back, and I would have expected it to create some negative item ledger entries because the items actually ship back to the vendor.

But those is not part of the invoicing, so I have to find that document from my posted purchase return shipment, that’s a long word. Posted purchase return shipment. So here’s my posted purchase return shipment, and I can see how the quantity of 210 that I have shipped back to the vendor.

And if I navigate this document, I can see here, my two item ledger entries that have been withdrawn from inventory in the correct amount here.