credit memos

HOW TO MAKE CREDIT MEMOS

Credit memos are concerned with the inventory which we returned it to a person whom we purchased that inventory. These memos are done in both cases customers and vendors as well, like if any customer purchased an inventory from you but after some time he/she returned some of its items to you then you make a sales credit memo or customer credit memo in which you will write those returned goods which you received from your customers, and after doing so if that customer is written on your account receivables account then when he returned the inventory your account receivables account automatically will be less by the amount of that returned inventory. Same is the case with the procedure when we purchased inventory from the vendor and then returned some of its item to him due to any reason, in this case we also maintain an account of that returned inventory as we maintained it in customer credit memo, so now when you maintained that account in vendors case then this will be called as purchase credit memo or vendor credit memo. In purchase credit memo if your purchases are recorded as accounts payable then when you returned your inventory your accounts payable also less the amount of that inventory automatically. Now we will see that how we apply this all procedure in Peachtree, so for this purpose we start our work with the key of navigation aid in the window of Peachtree today.

After opening the navigation key you can see both crdit memos,customer credit memo and vendor credit memo. When you have to open the credit memo of your customer then you will select “sales”from the above bar of this window which is also shown in the image below, when you open it then you will find an icon of “credit memo” from where you have to record those inventory which is returned back to you from your customer.Same is the case with the purchase credit memo, for that you will go to the above bar of the below window through which you will select “purchases” when you click on it then you can see the icon of “credit memo” where you mentioned and record all those inventory which you returned it to your vendor.

Firstly we talk about the customer credit memo or sales credit memo and for that we will open the below window by clicking on sales credit memo. Here in the “Customer ID”, we will mention the ID of that customer to whom we have made the sales in the past and now that customer has returned some of the items to us. As we select the CUSTOMER ID the tab shifts from “Apply to sales” to “Apply to Invoice No” and doing so the following window appears on the desktop screen:

From this window we will select the Invoice against which the returns are being made from the option in front of “Apply to Invoice No:” After this we will enter the date in the required field and Credit No under the date option. After this we will just mention the quantity of items returned by the customer in “Returned” field and after entering the complete return we will click on “Save” option in order to save the credit memo. To check whether the goods returned have been recorded in the financial reports or not we click on “Reports” from the toolbar and following window appears on the desktop screen.

From here we select “Account Receivable” option and following window appears on our desktop screen on clicking this option. From here we can open the “Customer Ledgers” report and can see the returns made by the customer to us.

Now we will see that how to record the purchase return in the software and for that first we must make a purchase. And before doing this one thing to be remember that purchase must be done on which now some inventory is returned by you to a person whom you bought that. As now we will going to maintain the purchase credit memo so we click on it and the below window will be open in front of you.

Here in the “Vendor ID”, we will mention the ID of that vendor from whom we have made the purchase in the past and now we are going to return some of the items to that vendor. As we select the VENDOR ID the tab shifts from “Apply to purchases” to “Apply to Invoice No:” Following window appears on the desktop screen as the tab shifts to “Apply to Invoice No:”

            From this window we will select the Invoice against which the returns are being made from the option in front of “Apply to Invoice No:” After this we will enter the date in the required field and Credit No under the date option. After this we will just mention the quantity of items returned to the vendor in “Returned” field and after entering the complete return we will click on “Save” option in order to save the vendor credit memo. To check whether the goods returned have been recorded in the financial reports or not we click on “Reports” from the toolbar and following window appears on the desktop screen.

            From here we select “Account payable” option and following window appears on our desktop screen on clicking this option. From here we can open the “Vendor Ledgers” report and can see the returns made by the customer to us.