Purchases Returns – Credit Memo
Okay, now we’ll see the purchases returns. Just now, in the previous topic, we saw the purchases reversal of 1000. This is bought from vendor 002, and then, it’s reversed so this net of this become 0.
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Now, in this topic, purchases returns of 200 by vendor 001 which is shown here Purchases returns of 200.
This is a credit memo. We call this incoming credit memo because the credit memo is coming in. You return the faulty goods to the vendor, and the vendor sends a credit memo. You can proceed here. Accounting, financial accounting, accounts payable, document entry, credit memo. Any credit memos which is received from the vendors is known as incoming credit memo, and any credit memo that you send to your customers is called outgoing credit memo. Okay, choose the vendor. Choose the first vendor or change their company. Code. Change company code to Sun. Choose it. First vendor, a. Document date. How much is that? 200.
For the G/L account, you must choose the G/L account to which you posted the purchasing invoice. Okay. This one. This is where you posted, isn’t it? The purchase invoice. Let me just open the purchase invoice in the background. LB03, the document list, 2009. This one here. The amount is 500. This is the one. This is the purchase invoice, right? Let me go here. Put the amount as 500. It is the purchase invoice amount, so 200 is the purchase returns, so go here and put that 200, let’s make sure the account is 600,000.
This here, CMO late. See this?
Let’s check the postings now. Vendors are credited, right? The purchase invoice is credited. Cost of sales is debited.
When you do the returns, it should be the other way around. Vendor is debited and cost of sales is credited. Post it. Posted. Let me adjust the values of the vendor. The first vendor. The original invoice is 500, and the returns is two hundred. The balance of the vendor is 300.
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