Vendor transaction types

Invoice

An invoice is usually recorded when it is received from the vendor for goods or services, whether you charge the purchase to your account or immediately pay for it.

Rebate

You can apply a rebate or credit a rebate to a vendor’s account. A rebate is not associated with a specific invoice; therefore, you cannot enter an invoice number. Rebates also have no effect on General Ledger; they only affect the vendor’s files. The amount you enter can be positive or negative. A negative rebate amount should be entered to credit the vendor for a previously applied rebate. When you credit a rebate, the Rebates YTD amount on the vendor record is not decreased.

Miscellaneous Credit

Miscellaneous credits require a specific invoice number and allow you to apply a credit to a vendor. They can be applied to individual invoices during Vendor Apply Miscellaneous Credit Entry or to the entire vendor balance using the Vendor Entry Pay Invoices Due Report. The invoice the miscellaneous credit is attached to must be valid.

Only Return Merchandise (RM) purchase orders (PO) can be costed with a miscellaneous credit or a credit memo transaction.

Credit Memo

A credit memo is applied against an existing invoice. If your vendor incorrectly bills you, you would have that company issue you a credit memo. You would then enter the credit memo so both your books and those of your vendor match.

When you enter a credit memo in Vendor Invoice Center Entry, you assign a new invoice number to the credit memo and specify the existing invoice number in the Apply Credits view. The posting date of the credit memo cannot be older than the posting date of the active invoice. The amount of the credit memo cannot be more than the remaining balance on the invoice. If the credit is for more, apply the necessary amount to the invoice and create a miscellaneous credit for the remainder.

You can also specify the entire credit as a miscellaneous credit and apply it in Vendor Maintain Transaction Entry or then Vendor Entry Pay Invoices Due Report. When a credit memo is applied, it inactivates scheduled payment transactions and possibly the original invoice transaction if it is fully paid (all scheduled payments are inactive). If the credit memo applied is less than the remaining balance of the scheduled payment, a new scheduled payment is created for the remaining balance.

After you enter a credit memo in Vendor Invoice Center Entry, select the Apply Credits view to see all outstanding scheduled payments for the Apply To Invoice # entered. In the Open Invoices for Vendor grid, you can apply the credit memo amount to the scheduled payment transactions of the invoice. Choose the scheduled payments you want to apply the credit to. Any number of scheduled payments can be selected and changed as often as needed. The proof increases as you select each scheduled payment and decreases as you release each scheduled payment.

Debit Memo

Use debit memos to increase the invoice amount of an existing invoice for freight, handling charges, and similar costs. The posting date of a debit memo cannot be older than the posting date of the active invoice. When you enter a debit memo in Vendor Invoice Center Entry, specify a new invoice number in the AP Invoice # field and an active existing invoice number in the Apply to Invoice # field.

The amount of the debit memo is added to the amount of the invoice, and a new scheduled payment transactions is created in the transaction file. The same terms and General Ledger accounts that apply to an invoice also apply to a debit memo. You can specify different terms than the original invoice and split the debit memo into multiple scheduled payments.

Reversal

Use reversals to correct an invoice or miscellaneous credit entered in error. The posting date of the reversal transaction cannot be older than the posting date of the active invoice or miscellaneous credit being reversed. Reversals can only be entered for existing invoices and miscellaneous credits that are active and have not had any payments or credit applied to them.

In the Invoice Detail section, you can select Invoice or Misc Credit in the Reversal Type field. The system attempts to automatically reverse the General Ledger entries made for the invoice or miscellaneous credit. If it is unable to do so, the General Ledger Distribution window appears, prompting you to enter the correct General Ledger information.

The amount of the reversal is derived from the invoice or miscellaneous credit being reversed. You cannot enter an amount. No terms can exist on a reversal, and the General Ledger distribution is automatically reversed based on the Journal #/Set # stored on the invoice. If there is an amount remaining (for example, due to account codes no longer existing), the vendor or operator AP control account is automatically updated for the entire amount, and the General Ledger Distribution window appears, allowing you to manually distribute the remaining amount.

Manual Payment

Apply manual payments (checks) against one or more existing invoices or create a new inactive invoice to match the manual payment. When you apply a manual payment to an existing invoice, you are applying it to one of the scheduled payment transactions created from the invoice.

Manual payments are not required to equal the amount of an invoice. You can apply a manual payment to part of a scheduled payment. The scheduled payment transaction against which you are applying the manual payment is inactivated and a new scheduled payment transaction for the difference between the original scheduled payment amount and the amount of the manual payment is created. If you enter a manual payment that is more than the balance in the vendor’s account, a miscellaneous credit is created for the remaining balance. The posting date of the manual payment cannot be older than the posting date of the existing invoice.

You can also create manual payments for non-existent invoices by creating an invoice on-demand. If you specify a new invoice, the invoice number and sequence are not validated but are used to create the new invoice. The new invoice automatically becomes inactive because it is considered fully paid.