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Last Post 11/10/2017 7:38 AM by  Jeremy
Processing Vendor Refunds
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Radu
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11/11/2016 2:13 PM
    I am trying to figure out a way to recognize vendor refunds through the AP module so that, when I process 1099s, the amount paid to the vendor shows up correctly. Historically, we just booked the refunds manually in the GL module, but obviously this does not reduce the amount reported on 1099s. The subsequent process was to create offsetting credit and debit memos in AP and a cash transaction in CB, but again the offsetting credit and debit memos do not reduce the reported 1099 amount.

    Ultimately, I think there has to be a way to link a CB entry to an AP entry so that the transactions reconcile and the 1099 amount reported is also reduced. The issue I am running into now is that any transaction code that can be applied to an AP invoice automatically involves a cash outflow, but I need to have a cash inflow since the vendor refunds are money coming in.

    Does anybody have any insight into how to accomplish this?

    Thanks,

    Radu
    Jeremy
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    11/22/2016 2:48 PM
    Why do you just not do a credit memo in AP20? Or a negative amount invoice?
    Sarah
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    12/01/2016 6:29 AM
    I am having a similar issue; however, instead of 1099s it is regarding the correct amount to be reflected on service agreements in PO25. We have tried credit memos in AP20 and using allowance AOC charges, but are not able to get the contract amount spent to reflect the credit amount and therefore we are unable to get an accurate contract spent value.

    I would be interested in any help or the resolution to this as it might help us as well.
    Mark (Yolo)
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    12/01/2016 1:00 PM
    We have this same issue both from the 1099 perspective and Vendor Service Agreement (PO25) perspective. We opened an incident in Xtreme that resulted in the following but did not resolve our issues. We have also added an enhancement request with Infor (No. 7449). Maybe the following will help some:

    You have three options:
    1) Add a MA42 credit against the agreement line after it has been exceeded. You would use the "Original Invoice" on the AP20 Misc tab, for the invoice that exceeded the line, had the invoice message, and the message has since been approved to pay as is.
    2) Add an AP Expense only credit memo, which is tied to the vendor, but not to the specific PO or Agreement.
    3) Use MA75 to reverse match the original invoice, which will auto create an offsetting credit memo. The AP user would then enter an adjusted invoice (with a unique invoice number, line adding "A" or "-1" to the original invoice number) and make it for the new amount (less the credited amount). Let's say the original invoice is $100, and the vendor has sent a $50 credit. MA75 the original matched invoice for $100, which will auto create the $100 credit memo, suffix 999. AP would add the new invoice for $50 and match to the agreement line. The original invoice payment can remain as is, and does not have to be voided & reinstated. The credit for $100, and new invoice for $50 will wash to a credit of $50 on the next payment to this vendor, which will also need to include any other invoice over $50

    1) You can use the CB20 for receipt of a check from your vendor. There is no way to link this receipt of a check to an invoice or service agreement line amount.
    2) It is not possible to readd $ to the PO25 service agreement line with a credit unless you
    a. Use MA42 once the agreement line has been exceeded
    b. Use MA70/MA75 to reverse match an invoice that has been keyed for the wrong amount
    3) When you use MA75, the system will create an offsetting credit memo, suffix 999. AP will then add a new invoice to rematch to the service agreement line. The credit memo and new invoice will wash to $0 payment, if the original invoice has already been paid.
    4) If you need to change the 1099 information on the invoices, you will need to use AP45 to make these corrections
    Sarah
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    12/01/2016 1:26 PM
    Mark...Thank you for the info it is very helpful, I will have to test this out to see if it will work with our business policies, which are complicated due to be a government entity. Part of our issue is that we have Multi-Year contracts and the agreement line will never be exceeded, however, we get credits any time over the course of the contract life.

    We too opened an incident in Xtreme, which also did not resolve issue. We also added an enhancement request in Infor (No. 9906).
    Mark (Yolo)
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    12/01/2016 1:37 PM
    We are a public sector client as well - a county in California. This is a real challenge for us and we complain about it regularly and often to our Infor contacts.

    I will vote on your enhancement request.
    Sarah
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    12/01/2016 1:44 PM
    Thank you Mark. We are located in Western New York. I have already voted on your Request, hopefully we can make some noise!
    Jeremy
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    11/10/2017 7:38 AM
    Hey all, I know this is old, but I have a question:
    Is it possible to apply a credit memo to an original invoice for a service PO Line that will then open the PO line back up?
    Scenario:
    PO Line for service quantity of 3 ea at $100 each.
    Invoice comes in for the service for all 3 and is matched.
    Then, a credit comes in for 1 of the three (maybe 1 of the service was not actually rendered yet).

    I can't get the credit memo to go with the original invoice using MA42. It won't let you apply a credit if it will cause the matched qty/amount to be less than the full PO Line.

    Ultimately, I'd like to take a PO Line that's been fully matched, apply a credit against it, and have that PO line "open" back up for a new invoice that is expected to come in after the actual service is rendered. Or cancel the remaining of that PO line after it's "opened" back up.
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