Can anybody tell me the difference between
-
Purchase return order and Credit memos(of Purchase)
-
Sales return order and Credit Memos(of sales)
in details
regards
prakash
hello
purchase return order is inventory entry(reduce stock) (item ledger entry)
credit memo accounting entry (reduce amount)(value entry,G/L,venderledger)
same for sales
Remember to use the search functionality this question has been asked many times before!
I would answer “time”. With a sales credit memo the stock is returned and the credit memo created. With a return order you can return the goods and at a later date create the credit memo. This is also about processing control, the goods come back, reflect this, then accounts process the credit memo. On the purchase side the same is applicable, just because you return the goods does not mean you will receive a full credit.
what I got from your answers is as follows, correct me if I am wrong
Return order ----- Only stock will be return, i.e. impact on inventory only i.e. item ledger entry
after that we have to pass Credit memos for accounting(G/L) entry impact
Credit Memos — Only Accounting impact i.e. G/L, Vendor ledger etc.
But in case Purchase/Sales return, Generally
both Stock and accounting ledgers should get impact
So, It means if we want both the impacts
First we have to pass a return order
second we have to pass credit memoms
So, I dont think its a correct approach in Navision
Is it there any approach, through which We can impact both Stock and accounting ledgers with a single effort
another thing
Mr. ramakrishna answer is different from AdamRoue
AdamRou is saying that Credit memo return stock
while ramakrishna is saying credit memo impacts accounting ledgers
I am confused, Please clear it
It depends upon the item type specified on the line, the document is irrelevant. If you post it to a GL there is only GL implications, if you use an item type there are item transactions. With a credit memo the item and financial implications in full happen at the same time, with a return order they do not.
Have a look at the software, trial some through and investigate the resulting impacts.
A Purchase Return Order is the reverse of a Purchase Order. You can post a shipment from it (sending things back to the vendor) which reduces inventory. You can post a credit memo from it (to reverse the accounts payable), which affects G/L. If you post a Purchase Credit Memo directly, and you post it, I believe it automatically posts a shipment to take care of inventory.
A Sales Return Order is the reverse of a Sales Order. You can post a receipt from it (reveicing things that the customer sends back into inventory) which increases inventory (depending on how you have this set up of course). You can post a Sales Credit Memo from it, which reduces the Accounts Receivable. You can also create a Sales Credit Memo directly, and when you post that I believe it will automatically post a receipt to take care of inventory.
You need to get the NAV training manuals and study those to get a more detailed look into how this all works. Start with the basic financials ones, and the trade ones.
Is not quite correct.
You have an entry in the item ledger entries after posting. But no posted “document” (receipt or shipment). [at least until NAV4, maybe they changed that in 5; have not checked]
I believe the creation of the posted documents relates to the flag in the respective parameters setup. In sales there is a create return receipt on credit memo, if ticked it creates the associated document.
normally in our company godown employ will enter purchase return order againest PRN purchase dept will enter credit memo after confirmation from vender.(for proper entry of vat)
you can enter directy enter credit memo with item also. selecting type item
That’s exactly the part I wasn’t sure about. I did not check if there’s a posted document or not, but I am pretty sure that it does take care of inventory.
Right there are fields in S&R setup to control that it seems. I don’t know for sure what happens if they are not checked though, if there are still any inventory transactions upon posting an invoice or a credit memo.
I believe if you have an item type the item transactions are still recorded (as you would hope [:D]) but if you were to look at the item ledger transaction it would reference an invoice, not a shipment, you could not navigate to a shipment and no record would be in the shipments table. I believe it is just a segregation process. Whatever happens if you pick an item type you will have inventory repercussions, it is just this flag handles where you can see them.
Dear all,
After testing and extensive study, I came to know that the following are the differences between return orders and credit memos
- Purchase return order and Purchase credit memo have the same difference as Purchase order and purchase Invoice have
i.e. in Purchase order we can do Receipt , Invoice seperately
while in Purchase Invoice both are done at the time of posting
same is the case of purchase return order, we can do ship and invoice seperately
while in purchase credit memo both are done by posting it
- same is the case of Sales order/sales invoice and sales return order/sales credit memo
Please correct me if I am wrong
You got it [;)]
Got it too!hehe Thanks for this thread! 