Vendor Credit Memos is where you run a G/L Export that summarizes the dollar value for products that you have returned to vendors. 

This is where you will check what you have returned (per your data in iMerchant) against the vendor credit memos.

Go To:

Modules > Accounting Exports > Vendor Credit Memos

• This will open the Find Vendor Credit Memo Export Batch screen. 
• You can find an existing batch to export, or you can create a new batch.
• More often than not, you will create a new batch to export.
• A G/L export batch for a Vendor Credit Memo is essentially a listing of all products assigned to a credit memo from the vendor you returned them to. 
• What this program does is enables you to select a credit memo number and then compare your values as tabulated in iMerchant against the vendor's credit amount on their actual credit memo slip.

To Create a New Batch: 

• Click on the New button in the Task Bar. 
  • This opens the Manage Credit Memo Batch window

Batch Date: Choose the date you want to use as the credit memo date for the batch. 

• The Batch Date will default to yesterday's date, but you can change it to whichever date you want. 

Batch Status: will be a grayed-out

• This is informational and cannot be changed. 
• It lets you know whether the batch you are currently working on is editable, verified, or already exported.

Click on the Enter vendor credit memos button

• This opens the Credit Memo Properties window.
• Within this window, you will select the return number you want to validate against the credit memo slip of the vendor.

In the Return Number for which credit is being given section: 

• This is the section that deals with the Return itself, as recorded in iMerchant. 
• You are essentially comparing the information from this Return against the information on the vendor credit memo slip.

The fields are:

Return Number: select the Return number of the Return you are comparing to the credit memo.

Final/Partial Credit: click on the down arrow at the right and select either Final or Partial. 

• Select FINAL, if the dollar amount on the credit slip equals the dollar amount on the Return
• Select PARTIAL, if the dollar amount on the credit slip is less than that on your return
• Whichever you select Final or Partial will impact the Status field in Returns once the batch is exported.

Return Date: (field is grayed out) fills in automatically with the Return Date as entered on the Return. 

View Vendor Return button will take you to the properties page of the Return itself. Once there, you can make any changes necessary or simply review the information on the Return.

To the right are four fields that fill in automatically once you have selected the Return number and entered a dollar amount in the Credit Amount $ field. 

• These fields compare the dollar amounts on the Return against the amount in the Credit Amount $ field and subtract any partial credit you may have already received for this Return.

Cost of returns $: fills in with the credit amount listed on your iMerchant return. 

-less previous Credits $: will fill in with the partial credits you have already received (and then validated as a G/L Batch) from this vendor for the Return number you are working against.

• If you have not received a partial credit for this Return number, it will fill in as zero. If you have received (and validated) a partial credit for this Return number, that amount will display here.

-yields potential Credit $: will fill in with the full potential credit amount you can expect to receive from the credit memo. 

• e.g. if the credit amount on the Return is $100.00, and you have already received (and validated) a credit amount of $40.00, the -yields potential Credit $ will be $60.00
• That is the full potential amount you can still expect to receive at this juncture.

Variance of Credit $ with potential: is the calculated variance of 

• Cost of returns $ minus ( -less previous Credits $ + -yields potential Credit $).

There are three buttons below the Return Number for which credit is being given section of the screen. 

The first two deal with the accounting offsets regarding this batch. 

The third button is how you approve the credit memo. 

From left to right.

Auto-create offsets allows you to have iMerchant create your accounting offsets automatically. You tell the system how to do it, and then it will do it for you. 

• Clicking on the Auto-create offsets button calls up the Create Credit Memo offsets window.
• Notice the two fields at the top right of the window:
  • Vendor Credit $: fills in with the value you had keyed in Credit Amount $ back at the Credit Memo Properties screen. 
    • This is the amount the vendor is crediting you. 
    • This field cannot be altered at this screen. It is here for your information.
  • Cost of Returned Goods: fills in with the value from the Cost of returns$ field back at the Credit Memo Properties screen.
    • This is the amount of credit you are owed based on the information in the Return itself.
    • This field cannot be altered at this screen. It is here for your information.
• Beneath these two fields, there is a display grid, which will list the G/L Codes that are included in the Return.
• The bottom of the screen is where you tell the system what to do.
• Use return cost and variance works in conjunction with the Variance section to the right of it.
  • Clicking on Use return cost and variance means that the G/L Codes will be accounted for based exactly on their Cost amounts, as taken from the data in the Return. 
  •  If you have two G/L Codes represented in the Return, those two codes will display in the grid at the bottom of the Credit Memo Properties screen once you select Use return cost and variance. 
  • The dollar amount listed in the Offset Amount $ column for each G/L Code will represent the total Cost of each Code, as taken from the Return. 
  • If you have no variance
    • i.e., this was a full, final credit memo in which all dollars were accounted for everything is all set.
  • If there is a variance
    • i.e. the credit memo represents a partial shipment to you
  • That's where the Variance sections comes into play.

• In the Create Credit Memo offsets window, to the right of the Use return cost and variance button, you will see the Variance section. 
  • Variance Amount $: tells you the variance (the difference between the Vendor Credit $ and Cost of Returned Goods fields). 
    • If the variance is zero, you have no problem. 
    • If it's something other than zero, you need to account for it. 
  • That's what the Variance Account lookup field is all about.
    • Select the Variance Account Code: the G/L Code that will be used in the General Ledger as the code used to account for the variance.
    • It will be a separate line item and will display in the grid at the bottom of the Credit Memo Properties screen, with the Variance amount displayed in the Offset Amount $ column.

If you would rather not use the Variance Account method, you can use the Prorated method. 

• Using the Prorated Method the Offset Amount $ column will fill in with a system-calculated prorated dollar amount for each G/L Code.
• If there is no variance, the Offset Amount $ column will fill in with the full Cost amount for the G/L Codes on the Return. 
• If there is a variance, the system will calculate a prorated dollar amount that will automatically display for each G/L Code under the Offset Amount $ column. 
• This prorated amount is the calculated percentage of the Cost of returns $ amount, and is based on the variance amount.
•  If you account for your Returns in this fashion, there will be no special Variance G/L Code (Variance Account Code) assigned to the variance amount.

Add offsetting entry calls up the Enter Vendor Credit Memo Offset window. 

A useful tool to manually alter the information on any of the G/L Codes displayed in the grid at the bottom of the Credit Memo Properties screen after you have "Auto-created" the offsets.

It is also useful if you need to manually create a new, separate G/L Code to the batch.

There are two ways of accessing the Enter Vendor Credit Memo Offset window.

1. If you want to alter the information on an already existing G/L line item displayed in the grid:

• Double-click on the item
• The Enter Vendor Credit Memo Offset window opens.
• If you have selected an existing G/L Code from the grid
  • The General Ledger Code field will be filled in with that G/L Code. However, you can change it here if you need.
• The Store field fills in with the store you are in.
  • You can change this, if needed.
• The $ Amount of offsetting entry will fill in with the amount taken under the Offset Amount $ column for the selected G/L Code.
  • You can change this amount here, if you need to.
• Save your changes and close out of the window.
  • Any changes you made will immediately be apparent in the display grid at the bottom of the Credit Memo Properties screen.

2. Click on the Add offsetting entry button on the Credit Memo Properties screen, without having highlighted a G/L line item in the grid

• Enter Vendor Credit Memo Offset window will display
  • All the fields will be blank. 
• You would go about it this way if you want to manually add a new G/L line item. 
• To do so, simply fill in the fields, then Save the changes. 
• Your new G/L Code line item will instantly display in the grid on the Credit Memo Properties screen.

Approve the Credit Memo: Once you have done all the work and accounted for offsets, you are ready to Approve the Credit Memo.

• Click on the Approve credit memo tab. 
• A dialogue box appears asking if you are ready to approve the credit memo. 
• If you select No, you are returned to the Credit Memo Properties window.
• If you are ready, click Yes. 
• If any errors occur, the system will tell you what they are, and you will need to correct them before approval can occur.
• Assuming the approval went through, the system will display a quick message announcing this. 
• You are still at the Credit Memo Properties screen, but notice the Approve credit memo button has been renamed. 
• It is now the Revoke credit memo approval button. 
• If you click on it, the approval will be revoked and then need to be approved again.
• Once you have approved the credit memo, close out of the Credit Memo Properties screen. 
• You are returned to the Manage Credit Memo Batch screen.
• If you need to return to the Credit Memo Properties screen, click on the Enter vendor credit memos button.

To Validate the batch 

• Click on the Validate batch button. 
• The system will generate a message letting you know that the batch is validated and ready for export.
• Notice the Validate batch button is now renamed Remove validation. 
• If for whatever reason, you wish to remove validation, you can click on this button. (You can then validate it later.)

Notice that the Created by field has been filled in with the user's name who just validated this batch.

The field to the right lists the date and time the batch was validated.