MYOB allows you to record supplier debits from your supplier. This is in form of purchase credit memo which may arise from return of damaged goods, additional discounts granted, wrong items delivered or overage in quantity being delivered. Please take note that in practice, supplier should be generally informed of the claims against your purchases from a particular invoice or purchase order. In case of returned items, the items should be returned to the supplier using the correct address. Additional purchase credit or supplier debit will arise for the freight charge to send back the items and you may also charge this with the cost of the items returned to the supplier in making the purchase credit. Take note it is very important to keep your supplier informed of any charges to be applied against your purchases so that these debits/claims will be properly applied against future payments and keep your records and that of your supplier on track and reconciled.
To enter purchase credit or supplier debit in MYOB, you still use the same command centre as you would enter a normal purchase or bill but entering the amount or quantity as negative number as per screenshot below.
For example, you ordered and received 100 items from DIY Supplies representing your purchases for 100 units of items for sale and have entered the purchase order in MYOB and have effected the Receive Items also for the same quantity of 100 units. Assuming there are 10 units that are defective even in its packaging and after agreement by the supplier, these defective units will be deducted from payment to be made for the specific purchase order invoice no. 189567.
To record the supplier debit, go to the Purchases command centre and click on Enter Purchases as per screenshot below:
In the Enter Purchases window, choose the purchases as Bill and indicate purchases layout as Item. Enter the quantity which is 10 units as a negative number under the Bill column and indicate the Price as per screenshot below:
Upon entering the negative 10 units in the Bill column, the same negative quantity is automatically extended in the Received column. Entering the Bill as a negative number will result to the inventory’s quantity balance deducted by 10 units. Indicate the Item Number and then the Price as a positive number to complete the supplier debit. You can also indicate the reason for the supplier debit under the Comment as per screenshot below:
Click on Record to save the supplier debit.
To check on the effect of this supplier debit to the item inventory, go to Inventory command centre and click on Items List or Count Inventory. Take note the quantity purchased and received previously was for 100 units and less the 10 units being defective, the inventory balance is now 90 units as per screenshot below: