Purchasing related credit memos are generated by 2 methods: reversal of the original PO Receipt transaction, or adding a Descriptor to the PO.
Most supplier credit memos are initiated by reversing the original PO Receipt transaction
▪Reopen the original PO and PO line
▪Go to PO Receipts > Transactions tab and select the Reversal button
▪Reverse the number of units you wish to credit
▪Go to PO Invoice and create a credit memo invoice for the returned quantities
Credit Memo using a Descriptor
▪Create a Descriptor for the credit memo
oThe default GL Account at PO Receipt will post to Misc Purchases. If you would like the credit memo to post to a specific account, you can go to GL > General Ledger Setup > Account Assignments > Purchasing Exceptions tab and define an exception account for this descriptor.
▪Add the Descriptor to the PO Details with a quantity of 1 and a negative unit cost value.
▪Perform a PO Receipt of the descriptor
▪Create a PO Invoice for the credit memo negative dollar amount.
