Exact diff. between Return Orders and Credit memo

Hi All, What is the exact differenc between Return Orders and Credit memo, in Purcahse and Pay’bles as well Sales and Rec’bles. Under what situtaion we will we will be using Return orders? Can you give some examples…? Regards M.R.

Hi Ilikeyou75, The diference between Return Orders and Credit Memo is their functionality. Return Order similar to Sales Order or Purchases Order, and Credit Memo similar to Sales Invoice or Purchases Invoice. Return Order allow you only to post receipt of return goods from Customer(Sales) and only to post shipment of return goods back to vendor (Purchase) without record any value in any chart of account (similar of sales order only post shipment). When posting credit memo, this is not allow. Return Order also allow you to do multi posted return shipment or posted multi return receipt(All form one return order), this can not be done by unsing credit Memo. Hope this explanation can help you.

Also, Return orders could be managed by Warehouse Management System. Elena

Hi, I’ll put it this way: Functionally speaking; 1) Return Orders are used to reverse a Sale or Purchase Transaction totally/Partially. 2) Credit Memos are used to make changes to a Sale/Purchase Transaction. And ofcourse as mentioned in earlier reply, The involvement of Warehouse activites marks the difference. Regards, DD