The Invoice Vendor option allows you to create a negative accounts payable invoice for the vendor the items were returned to. The selected Pending records must all be for a single vendor company (ShipTo company). The amount of the AP credit memo is based on the To Clear Quantity and the Value in the selected Pending records.
The following steps are performed in order to create a vendor invoice in the RTV Management program.
• Select the records to be cleared. You may select one record by highlighting the record in the RTV Management program, or by tagging a single record using the Tagging option. You may also tag multiple records for the same vendor.
• Set the To Clear Quantity in the records to the quantity that is being credited by the vendor. The To Clear Quantity can be set by tagging the record (which will default the remaining open quantity into the To Clear field), or by using the Zoom option to activate the Pending Detail Panel – which allows you to set the To Clear value manually.
• Set the Value in the records to the amount of the credit being received from the vendor for each item. The value and the To Clear quantity are used to determine the amount of the vendor invoice. The amount should be entered as a positive number in each record being processed.
• Select the Serial Numbers for any serialized items being processed.
• Press the Invoice Vendor Button.
• Input the invoice number of the credit issued by the vendor into the prompt that is displayed when the Vendor Invoice option is selected. This invoice number will be used for the accounts payable credit memo that is created by the system.
• Enter the invoice date from the vendor invoice – if available. If a date is not specified, the current date is used as the invoice date.
Once you have entered the invoice number and date, the system activates a prompt that displays the AP Register number and the Journal Entry number that was assigned to the transaction.
As the vendor invoice transaction is processed, the system performs the following updates.
• A vendor invoice is created in the Accounts Payable Register File. The AP credit memo is created using the vendor name specified in the ShipTo field of the selected Pending record.. The amount of the credit memo is determined by the amounts entered into the "Value" and "To Clear Quantity" fields for the tagged pending records. The currency, division, and department used for the credit memo are the same as those used on the A/R invoice from which the pending records were created. The accounts payable credit memo is assigned a type of "R". The invoice number from the pending records is moved into the Invoice Number field of the credit memo and the customer PO number from the A/R invoice used to create the pending records is moved into the description field of the AP credit memo.
• A journal entry is made by the system to record the AP invoice, the adjustment to inventory, and the gain or loss resulting from the vendor invoice transaction.. The AP Control Account used for the Journal Entry is determined by the Autopost number stored in the system parameter F248: APRTVCON. The total amount of the AP Credit Memo is determined by the amounts entered in the "Value" and "To Clear Quantity" fields for the selected Pending records and this total is debited to this account. Individual journal entry lines are also created by the system in order to reduce inventory for each line item being cleared from the Pending file. The product line of the inventory item is used to find the Autopost number of the appropriate inventory account, and a credit journal entry line is written for the extended amount of the cost stored in the Pending record. The journal entry is created with a Source of "RV". The accounts payable credit memo register number is moved into the Ref_No field of the journal entry and the invoice number from which the pending records were created is moved into the memo field of the journal entry (if multiple invoices are selected, the last invoice number processed will be moved into the memo field of the JE). The entry is made in the division used on the original order or invoice and the department is always 1. Since there is probably a difference between the credit you will receive for each item from the vendor (Value) and the weighted average cost for the item which is stored in the Pending file, an adjusting entry is made to cover this amount. The difference between the value of the AP Credit Memo and the value of the goods taken out of the Pending file (based on the cost stored in the Pending file) is charged to the account defined by Autopost Number 660. If a loss is being recognized the account is debited, if a gain is taking place the account is credited. This RTV Gain or Loss account would normally be set up in the chart of accounts so that it appears in the cost of sales section of the income statement. The RTV gain or loss journal entry line is created after all the pending lines have been processed to compensate for any changes in the average cost of the inventory line during the processing.
• The Pending records for the items being processed are updated. The system updates the cleared quantity in each Pending record based on the quantity being processed and it changes the status of the record to closed if the entire quantity in the record is cleared.
• The serial records for the items being processed are updated and serial history records are written to record the fact that the items were invoiced back to the vendor.
• Inventory Transaction records are written to record the change to the Pending inventory value. As the AP credit memo is created, records are written to the Inventory Transaction File for each item processed to record the movement of the goods out of the Pending File. Each transaction record stores the item number and quantity processed, and the company the accounts payable credit memo was created with. The average weighted cost of the item stored in each Pending record is moved into the Previous Unit Cost field of the Inventory Transaction record and the "Value" from the Pending record is moved into the Cost field of the Inventory Transaction record. As the inventory transactions are written the invoice number assigned by the system is recorded in the Invoice Number field of the record. After the accounts payable credit memo is created and after the journal entry to record the credit memo is posted, the system loops through the transactions again and it records the AP credit memo number in the AP Number field of the Inventory Transaction records to tie the transaction records to the AP credit memo. Records are written to the Inventory Transaction file with the special source "RD".
Note - No updates are made to the Inventory file as the file was updated when the items being returned to the vendor were invoiced by you and moved into the Pending file. Clearing the records from Pending affects the Pending subledger, not the Inventory subledger.