Item rejection

When you reject items, you must decide whether to return the items to the vendor or to write them off. Rejected items that are not returned to the vendor are written off to a scrap account. When you return rejected items, you are granted a reduction in the account with the vendor. The reduction in the vendor account becomes a chargeback or a credit memo. Sometimes you can return items for replacement items.

• Chargeback

  A chargeback indicates to the vendor that you have only paid for the items you received, regardless of the total on the invoice.

• Credit memo

  A credit memo is a type of vendor claim that indicates to the vendor you pay for more than you receive. When you receive a credit memo from a vendor, you are requesting the vendor to grant you a credit towards your account. The credit is available for you to use on a later purchase with that vendor.