How to Account for Vendor Credits Using Revel POs and QuickBooks

By Andrew

Follow

Business owners are sometimes given discounts/credits on purchases of goods when ordering stock form their Vendors.

Revel doesn't sync negative purchase order values (i.e., discounts/credits) to QuickBooks, so you will need to account for them in one (and only one) of these ways: 

  1. Recalculate Costs of the Products on that Purchase Order 
  2. Include in 'Misc. Cost' field on PO in Revel and then follow the steps of Option 3 in QB.
  3. Create an RMA (will automatically create a vendor credit in QBO). Click here to learn how.

Please make sure to choose one option only. By following more than one will likely cause duplicate entries in QB and affect your Revel reporting. 


Option 1: Recalculate Product Costs based on the Vendor Credit

P.O. Subtotal - Vendor Credit = Net total 

Net Total (Including Discount)/ Number of items = Cost per Item including discount. 

Reenter those totals into products which will bring the PO Total up to the correct total. Ensure the tax rate is correct and save. 


Option 2: Create a Vendor Credit in QuickBooks.

This Option requires that you enter costs into your Purchase Order, and include the Credit on the Purchase order in "Misc. Cost" Field. The Misc Cost will not pass over on the invoice to Quickbooks 

To enter a credit:

    1. Click Create (+) > Vendor Credit.
    2. Fill in the credit:
Vendor Choose the vendor who is giving you the credit.
Payment date When you were given the credit.
Ref no. Tip: It's a good idea to enter a reference number because it helps distinguish different credits from the same vendor. This will come in handy when you pay bills.
Location Optional. If you don't see this field, this feature is turned off in Company Settings (or Account and Settings depending on what you see).
ACCOUNT For a Refund, Return or Credit, you would choose the expense account for the original purchase. 
AMOUNT The amount of the credit.
CUSTOMER Optional. Why enter a customer? If you don't see this field, this option is turned off in Company Settings (or Account and Settings depending on what you see).
BILLABLE

Optional. Check this box only if you want to extend this credit to the customer you chose for this item. Tell me more.

If you don't see this field, this option is turned off in Company Settings (or Account and Settings depending on what you see).

MARKUP % Optional. You can credit the customer the original markup you charged. If you don't see this field, Markup is turned off in Company Settings (or Account and Settings depending on what you see).
TAX Optional. You can credit the customer the original tax you charged.
CLASS Optional. Choose a Class. If you don't see Class, class tracking is turned off in Company Settings (or Account and Settings depending on what you see).
  1. Click Save.

Option 3: Create an RMA

Creating an RMA in Revel will automatically create a vendor credit in QBO.

See here to create an RMA in Revel.



Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request
Still have questions? Contact our friendly Support team