Vendor invoice credit
I have an invoice half paid dated in last financial year. We have supplied stock to customer but product failing. Supplier agreed to credit balance we owe. We are not returning stock to system. What is the correct way to handle this. I can do a manual credit note but what account do I use as if I use the item it will put back into inventory just as if I did authorize return from bill
The standard way is to use Return Authorization so you can untick Restock. The non standard way is just create a standalone credit memo and use a non-inventory item calling the expense/ contra revenue account you use for Refunds.
