How to enter Vendor Credit Memo in Peachtree Software

Vendor Credit Memo

We use the Vendor Credit Memo window to enter credit memos for returns to and credits from a vendor. We can enter a credit memo as an open credit, or we can apply it to an existing invoice. Suppose that we have a purchase transaction that we no longer need. Should we just erase it? If we want to practice good accounting, the answer is a definite no. Deleting purchases removes the audit trail that thing accountants mean when they talk about the list of transactions we enter because our business does business. When accountants can trace transactions from beginning to end, they’re really happy campers. We need to understand that Peachtree allows us to delete any unpaid purchase, even though our accountant won’t like it. Display the purchase in the Purchases/Receive Inventory window and then click the Delete button. However, Peachtree won’t allow us to delete a purchase if we’ve applied any transactions to it. Suppose, for example, that we accidentally paid a purchase that we later determined we should not have paid. If we try to delete the purchase, the Delete button in the Purchase window is unavailable. In this case, we need to void the check we wrote that paid the purchase, and then we need to enter a vendor credit memo in Peachtree to cancel the effects of the purchase. After we void the check, follow the steps in this section to finish canceling the purchase. Besides fixing errors in purchases, don’t forget about the times when a vendor issues a credit memo to us for merchandise we return. To reduce the balance we owe the vendor, we need to enter the vendor credit memo into Peachtree and match it to the original purchase. Although we can enter a vendor credit memo without having previously entered a purchase, typically we enter vendor credit memos for existing purchases. In the following steps, we assume that we’re returning any merchandise for which we receive a credit.

We first open an existing company which we have made and the following screen will be appeared in the Peach tree software after opening an existing company.

We use Credit Memo in Peach tree software by clicking on the Tasks Menu, the following screen will be appeared after clicking on the Tasks menu, and the task menu is on the top screen of the Peachtree software as shown below

We after clicking on the Task menu choose the Vendor Credit Memo which is the 12th number option in the Tasks Menu and by clicking the Vendor Credit Memo the following screen will appear in our screen.

After opening the window of Vendor Credit Memo we then enter the vendor ID in the Vendor ID field. We can use the lookup list button to select the vendor from our list of vendors. The tap of Vendor ID is given below after opening the lookup list.

After we select a vendor, we enter a date in the Date field as shown below

After entering the Data we then enter a credit number in the Credit No. field the Credit No. tab is shown in the following picture.

After entering the date we then enter the Return Authorization Tab and the A/P Account tab . A/P Account tab has been set with the account type of A/P if we want to change it then we can change the account according to our desire the. There is a discount tab also there and we can amend the discount tab according to our requirement the following screen shows the three tabs and these three tabs are not compulsory to fill out but A/P Account is important.

There are two tabs after the A/P Account one is Apply to Invoice No. and the other is Apply to Purchases tab. As we choose the ID the tap changed from Apply to Purchases to Apply to Invoice No. tab. On the Apply to Invoice No. tab, click the Apply to Invoice No. drop down list and select the invoice number of the purchase for which we’re recording a credit memo as shown below

Peach tree fills in the lines that appear on the purchase. On each line of the Apply to Invoice No. tab, in the Returned field, we type the quantity which we want to return. For example in this we take 5 quantities returned. If we plan to return everything, we can click the drop-down list arrow on the Return button, and select all to have Peachtree fill in all the amounts for us. If we are using Automatic Decimal Entry, remember that we have to put the decimal-zero after the whole number, or Peachtree adds the leading decimal: To get nine, type 9.0. Peachtree fills in the amount (unit price times quantity). The filled information about this tab is given below

If we’re returning a serialized item, click the Serial No. button to display the Serial Number Selection dialog box and identify the serial numbers of the items we are returning. Select the check box next to the numbers we’re returning and then click OK. At the end we then click the Save button to save the transaction.