AP Credit memos 1

[VE]

Our Controller says that the way our system is set up, AP credit memos are doing the opposite of what they are supposed to do. Instead of increasing the amount that we would owe to a vendor, they are decreasing them, doing the same thing as the debit memos.

Where do I fix that? I have looked in the help files and I'm thinking it might actually be in the vendor class, but I do not have an accounting background and I suspect that if I did it would be obvious, or at least I would know the right words to search for in Help.

Thank you
VE

 

[VE]

I don't think I was clear, what she is calling a "debit memo" GP is calling a return. When I make a test of each, they both debit payables. She wants one of them to credit payables, like an invoice (I'm not 100% sure why she can't use an invoice for this, but I'm not an accountant)

Thank you again

 

[LyleU]

VE,

Your controller is thinking of "credit" in terms of the G/L and not in terms of transactions between you and your suppliers. The credit memo functionality is used to record transactions like if you return a chair to the office supply house and they issue a credit to you in order to REDUCE your balance owing to them.

Lyle