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Purchase returns

Businesses sometimes return goods to their suppliers for various reasons. For example, items may arrive damaged or may not meet the required specification. This topic covers where and how a purchase return is recorded in Sage 50.

In the Vendors & Purchases Navigation Center click the Credits and Returns icon and select New Vendor Credit Memo from the drop down list provided.

Select New Vendor Credit Memo

This opens the Vendor Credit Memos window where you can enter the details of the purchase return into Sage 50. The following screenshot and reference table show step-by-step instructions on how to record the merchandise returned to the vendor into the Vendor Credit Memos window in Sage 50. Note that each step is assigned a reference number to help you identify the appropriate field or icon in the screenshot of the Vendor Credit Memos window.

The Vendor Credit Memos window with reference numbers

The Vendor Credit Memo window
Step Sage 50
field or icon
1 Vendor ID Select the name of the vendor.
2 Remit To Sage 50 automatically displays the remit to address of the vendor.
3 Date Click the calendar icon to select the date of the purchase return.

Note that Sage 50 Complete Accounting 2015 and 2017 provide two date fields; one field for the credit date and a separate field for the due date. If you are completing the Sage 50 Practice Set you should enter the date of the purchase return into the 'Credit date' field. Sage 50 will then calculate the due date and automatically enter this date into the 'Due date' field.
4 Credit No. Enter the credit memo number. If you are completing the Sage 50 Practice Set, you are advised of the credit memo number to use, so you should enter that number into the Credit No. field.
5 Apply to Invoice No. In the drop down box next to Apply to Invoice No. select the invoice number relating to the returned items. Sage 50 automatically populates the rows below with the items purchased on that invoice.
6 Returned Record the number of items returned.
7 Amount column Sage 50 automatically calculates the value of each item type returned.
8 Credit Total and Credit Applied to Invoice Sage 50 automatically calculates the total of the Amount column (Credit Total) and the credit applied to the invoice.
9 Save icon Once you have reviewed the information in the Vendor Credit Memos window, remember to click the Save icon to record the purchase return, journalize the transaction and post it to the applicable accounts.

And just to double check...

If you want to check that the vendor credit note has been applied to the purchase invoice, open the related invoice in Sage 50. For instructions on how to find transactions in Sage 50, including how to open an invoice, see the Find transactions page in this learning center.

In the following screenshot notice that the amount of the credit memo appears in the Other Payments and Credits line near the bottom of the window. The amount reported as Net Due has been updated to reflect that the amount of the credit memo has been subtracted from the Invoice Total.

The Purchases/Receive Inventory window with the vendor credit memo applied to it

Credit applied to purchase invoice Return to the top