Adaco: Credits at Receiving and RMAs

Overview

Credits may be processed for goods or services, both quantities &/or prices, at the time of Receiving using Pending Credits or as a separate transaction using Return Orders for Return Materials Authorizations (RMAs).

A sound understanding of receiving orders within the system is required to follow the instructions given in this article. See Adaco: How To Receive and Invoice a Purchase Order for further reading.

Process

• Logged in to the system at Property level, go to Property > Setup
• From the left-side menu, select Accounting > Payment Methods

Fig.1 - Payment Methods screen
 

• Create a New Payment Method
• Give it a Number and enter 'Pending Credit' in the Payment Method field
• Save and Close

Fig.2 - Creating a Pending Credit payment method

A credit may be required for quantity or cost of a product(s), or it could be for physically returning goods to the supplier.

If a Credit is for Quantity or Cost

• Receive the order in full, based on Invoice or Delivery Note

 
Fig.3 - Receiving an order

• Immediately apply a Receiving Correction
• Adjust Quantity or Vendor Price
• Add a second invoice (suggested invoice Number "PO#-Receiving#") with Type as Pending Credit
• Select Save and Print Receiving Verify

Fig.4 - 2nd 'Pending Credit' invoice in a corrected receiving

The organisation's finance team should manage the Invoice Log Report by Invoice Type “Pending Credit” to ensure finalised Credit Invoices are sent by Suppliers (may have to accrue manually at EOM).
 

Fig.5 -  Setting Pending Credit as Invoice Type in the Invoice Log Report

• When the Receiving Correction is sent, update the Invoice Number with the actual Credit Invoice Number and change the Invoice Type to "A/P" so it can be processed through to the finance system.

 
If a Credit is for Physically Returning Goods

• Receive in full based on Invoice or Delivery Note
• Create Return Order
• Purchasing should manage Open RMA Report
• When supplier picks up goods, Receive Return Order PO
• Apply Credit Invoice when provided. It may be upon pickup or later (if later, then it will show on Unbilled Receiving Report to be accrued)