Enter Vendor Credits

How Do I... Enter Vendor Credits?

If you have a situation where you have purchased materials from a vendor, but then you need to return them, here's how to handle that in Smart Contractor...

First, since Smart Contractor uses QuickBooks to manage accounts payable, Smart Contractor does not track vendor credits - QuickBooks does. If you are using QuickBooks, you can enter vendor credits in QuickBooks and then apply them to bills (vendor invoices) that you enter in Smart Contractor.

As for how the vendor credit will affect a job and customer's balance in Smart Contractor, there are a number of possible scenarios:

If you have not entered the purchase for the returned material in Smart Contractor, then there is nothing more you need to do.
If you have entered the purchase for the returned material in Smart Contractor, but you have not invoiced the customer for the returned materials, then what you need to do is remove the purchase from Smart Contractor. To do that:
- Go to the Enter Purchase menu option.

- Click on the prompt for Purchase; select the purchase that has the returned materials in it. If you don't know which purchase it is in, go to Reports > Job Transation Reports > Purchases, and list all of the purchases for the job so you can find which purchase has the returned item.
- If the purchase only contains the one item that was returned, then delete the purchase:      - Click on Purchase Status,
  
       - Select "Deleted"
       - Click OK to Save
- If the purchase contains more items than just the one item that was returned, then remove the item from the purchase:
  - Click in the box in the left column to uncheck the returned item.
  - Click OK to Save
If you have already invoiced the customer for the returned materials, do not delete the purchase, but create a credit memo (negative invoice) to the customer in Smart Contractor. To do that:
1) Enter a negative purchase for the returned materials:

- Go to the Enter Purchase menu option.
- Click on the prompt for Purchase; click (Add New).
- Select Vendor.
- Click on the last (empty) line in the grid...
     - Select Job,
     - Select Item,
     - Select Cost Category,
     - Select Product (if any),
     - Enter the quantity returned in the Purchase Count as a negative number. For example: -1,
     - Select Purchase Unit,
     - Enter the cost per unit,
- Click OK to Save.

2) Now, create a Credit Memo to credit the customer for the returmed materials.

- Go to the Create Invoices menu option.
- Click on the prompt for Invoice; click (Add New).
- Click on "Credit" check box.
- Click on Invoice Options...
- Click on option to Invoice: Actual Cost. This will retrieve the negative purchase item in the grid.
- Click in the check box of the negative purchase item.
- Click View to Print the Credit Memo.