Credits and Returns to a Vendor

How do I enter credits from a vendor, and returns to a vendor?

If you are getting money back from a vendor, follow these steps:

  1. Choose Material Purchases from the Costs menu.
  2. Click the New button.
  3. Enter the vendor into the Supplier clairvoyant field.
  4. Enter a brief description of the credit.
  5. Enter the amount of the credit into the Gross Price field.
  6. Enter job cost info.
  7. Click on the Applies To popup field, and enter Credit or Return (see below).
  8. Enter the way you will receive the funds into the Payment Method and Details field.
  9. Hit the Enter key to save the record.

Payment Details

If you entered Vendor Invoice into the Payment Method field, Goldenseal will subtract the amount of the credit from your Accounts Payable balance with the vendor (to be technical, it adds a negative amount). The next time you use the Pay Bills command, the credit will be included with your other payables, and you can settle it then.

For other types of payment, Goldenseal will create an Instant Credit-- a deposit into your checking account, credit card account, or whichever other account applies.

Using Credits

Enter Credit into the Applies To popup field when you get money back, and don't change any inventory amounts.

A credit might apply to any of these situations:

  • There was a mistake in the price.
  • The item was damaged and you got a partial refund.
  • You returned an item, but are not tracking it in inventory.

Using Returns

Enter Return into the Applies To popup field when you return an inventory item, and want to adjust inventory quantities as well as getting money back. If the transaction includes an Item breakdown, the inventory quantity of each listed item will be reduced.

NOTE-- If you enter a Return when there are no Item breakdowns, the return will act exactly the same as a plain credit, with no inventory adjustment.

Click here to return to expense accounting topics.