Enter and Apply a Vendor Credit Memo

Related topics

Look up the current payment status of a purchase invoice

Pay vendors or enter payments for purchases

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Record credit card purchases

Enter a deposit or prepayment

Read the payments overview

Read an overview of retainage

Occasionally, a vendor may issue you credit.

  • If the credit is issued on a purchase without an invoice, you enter it on the Apply to Purchases tab of the Vendor Credit Memos window.
  • If the credit is issued on an existing invoice, you enter the credit on the Apply to Invoice tab of the Vendor Credit Memos window.

Entering a Vendor Credit on an Existing Invoice

  1. From the Tasks menu, select Vendor Credit Memos.
  2. Enter or select the ID of the vendor who is issuing the credit. To display a list of existing vendors, type ? in this field, or select the Lookup button.
  3. In the Credit # field, enter the ID that you want to apply to the credit memo.

    Note: You may want to connect the application amount to the credit memo. For example, if the existing invoice number is 106, you may want to type 106-C to indicate that the credit memo is applied to the invoice.

  4. Enter the date of the credit memo if it is different from the displayed credit date.
  5. Enter the due date of the credit memo if it is different from the displayed due date.
  1. Select the Apply to Invoice tab.
  2. Use the drop-down list that appears at the top of the tab to select the original invoice to apply the credit memo to.

    The grid displays all line items that appear on the original invoice.
  3. In the Return column, enter the quantity of any item that you want to credit or return.

    The quantity that you enter here will appear on the completed credit memo; Sage 50 will automatically remove this quantity from your inventory item records.
  4. Repeat step 3 for each additional item that you want to return or complete.

If you need to enter retainage, select the Withhold Retainage tab and enter the appropriate amount of retainage credited to you on the appropriate job line item. This will ensure that retainage is tracked properly in the system.

Make sure that the general ledger account number selected is a Payable Retainage account. This number will default to the account used on the original invoice.

When finished entering transaction information, click Save. If you are using batch processing, to post the memo, select Tasks>System, and then select the Post option.

Entering a Vendor Credit on a Purchase without Invoice

  1. From the Tasks menu, select Vendor Credit Memos. Sage 50 displays the Vendor Credit Memos window.
  2. Enter or select the ID of the vendor who is issuing the credit. To display a list of existing vendors, type ? in this field, or select the Lookup button.
  3. In the Credit # field, enter the ID that you want to apply to the credit memo.
  4. If the transaction date is different from the one displayed, enter or select a new date.
  1. In the Quantity column, enter the quantity of an item that you want to credit or return.

    2. The quantity that you enter here will appear on the completed credit memo; Sage 50 will automatically remove this quantity from your inventory item records.
    If the line item contains serialized inventory, you will need to either add or select serial numbers for the item(s) (Sage 50 Premium Accounting and higher). Select the line item with the serialized inventory item, then select the Serial No button to enter or select serial numbers. Either the Serial Number Entry or the Serial Number Selection window appears, depending upon whether you entered a positive or negative quantity. Which window will appear? Enter or select the serial numbers you need and click OK when you're finished to return to the Vendor Credit Memos window. However, if the credit memo has more than one line item that contains serialized inventory, you can click OK/Next to save the current entry and move to the next serialized item.

  2. Next, enter all information for the returned or credited item, including the item's quantity, item ID, description, unit price (the number of decimal places is selected in Maintain Global Options), and job information (if applicable). The default unit price is the last posted price for this item. If you are tracking job costs, you can assign a job for the item.
  3. Repeat steps 1 and 2 for each additional item that you want to return or credit.

Select the job and the phase and/or cost code to which this transaction applies. To do so

  1. In the Job field, click the folder button to display a drop-down list of available jobs, phases, and cost codes (if the job uses them).
  2. Click the folder for the job you want to apply these costs to. This will display the list of phases.
  3. Click the folder for the phase you want. This will display the list of cost codes if there are cost codes associated with the phase you selected.
  4. Click the cost code you want to select, if necessary. This will close the list of jobs and select that particular job, phase, and cost code.

Note: Purchases of stock and assembly items cannot be applied to a job. These types of inventory items are applied to a job using Inventory Adjustments or Sales Invoicing.

If you need to enter retainage, select the Withhold Retainage tab and enter the appropriate amount of retainage credited to you on the appropriate job line item. This will ensure that retainage is tracked properly in the system.

Make sure that the general ledger account number selected is a Payable Retainage account. This number will default to the account used on the original invoice.

When finished entering transaction information, click Save. If you are using batch processing, to post the memo, select Tasks>System, and then select the Post option.