Recording and settling supplier debits

Purchases > Recording and settling supplier debits

A supplier debit is money that a supplier owes you.

To process a supplier debit, you first need to record a debit transaction and then record the settlement of the debit (for example, by recording a refund cheque from your supplier).

Recording supplier debits

You can create a supplier debit in one of two ways:

▪	Reverse an existing purchase. Use this method if you have been debited for the entire purchase.

▪	Manually create a debit. Use this method if you have been debited for part of a purchase.

To reverse an existing purchase

Your company file transactions must be set to unchangeable before you can reverse a purchase; that is, the Transactions CAN’T be Changed; They Must be Reversed option must be selected in the Security tab of the Preferences window.

1	Find and display the purchase. For more information, see Finding a transaction.

2	Go to the Edit menu and choose Reverse Purchase. A supplier debit appears in the Purchases window.

3	If you want, you can make some changes to the supplier debit (such as changes to the date and memo), but you can’t change the accounts, amounts and quantities that are associated with the debit.

4	Click Record Reversal.

To manually create a debit for an item purchase

1	Go to the Purchases command centre and click Enter Purchases. The Purchases window appears.

2	In the Supplier field, type the supplier’s name or select it from the list.

The terms and ship-to address shown in the Purchases window are the details recorded in the supplier’s card.

3	Select Bill from the top left corner of the window.

4	Click Layout, select Item and then click OK.

5	In the Bill field, type the quantity of the item you are returning as a negative number.

6	In the Item Number field, type the item number or select it from the list. The cost of the item is displayed as negative amount in the Total field.

7	Click Record.

To manually create a debit for a non-item purchase

tip : Tracking purchase returns and allowances

Before you create a supplier debit for the first time, you may have to create an account for tracking purchase returns and allowances. Make sure the new account is an expense account. See Set up accounts.

1	Go to the Purchases command centre and click Enter Purchases. The Purchases window appears.

2	In the Supplier field, type the supplier’s name or select it from the list.

The terms and ship-to address shown in the Purchases window are the details recorded in the supplier’s card.

3	Select Bill from the top left corner of the window.

4	Click Layout, select Miscellaneous and then click OK.

5	In the Description field, type the reason for the supplier debit.

6	In the Acct No. field, type the account number to be debited or select it from the list. This is normally an expense account called Purchases Returns.

7	In the Amount field, type the amount of the debit as a negative amount.

8	Click Record.