Chargebacks and Vendor Credit Memos

unknown

Hello!

We implemented Lawson procurement about five months ago and are using the matching tool. We are running into the situation where we have created Chargebacks or Credit Memos in the system but the vendor follows up with its own credit memo - essentially creating a duplicate credit. I'm curious to find out what your organization does in this situation.

Thanks for sharing!

Ronda

dechevar

Hi Ronda. I am assuming you are referring to the return process. Our buyers obtain an RMA from the supplier and our policy is that we do an immediate chargeback. If a credit memo comes in, AP determines if a chargeback was done and, if not, processes the credit memo. One of the biggest complaints we had from buyers was that they could not see if a credit memo had been applied to a PO. We were told by multiple consultants that a credit memo cannot be applied when a PO has been paid and closed. Just recently found out this is not the case and will be revisiting our chargeback policy in the next few weeks. If you are not aware of how a credit memo gets applied to a return, here are the steps from Infor:



1. Check PO64.1 (PO Line Item History) to get the vendor return document number.



2. Add the invoice on AP20.1 (Basic Invoice). Include the batch number (if needed), expense only handling code, an invoice type of C (Credit Memo), return number (should be entered on the Misc tab of AP20.1), and a positive invoice dollar amount. If you have freight credits, enter then in the Prorate tab of AP20.1.



3. Once you have added the invoice, the invoice amount will show as a negative amount and the vendor return distribution will appear at the bottom of AP20.1.