Goods have been received and the invoice has been paid. But then the goods were returned to the vendor and they issued a credit note. How do we process the credit note so it could be applied to future invoices?
1- Issue a PO Return for the goods returned. You will need the original PO Receipt number at this point. This will adjust the cost and quantity of your item in inventory.
2- Issue a PO Credit Note Referencing the PO Return's document Number.
3- Run Day End. This will force the PO to create a batch in AP Transactions - Invoice Batch List. The Description of this batch will be "PO Generated batch"
4- Post the PO created batch in AP. This AP Credit Note will sit on the vendor's account and can be applied to any future invoices.