Diff Between Return order and Credit Memo

Silva

Hi

I have a Question...what is the Difference Between the RETURN ORDER and CREDIT MEMO? Hoping for your reply..THANKS

kine

Same as between Order and Invoice.

Return order is Order in oposite direction (when customer is returning you some items etc.) and Cr. Memo is Invoice when You are paying to Customer (e.g. for the returned Items).

Silva

Hi

So if Post the transaction as Order then,the Customer want to return some item.. I will use return order? and when I post the transaction As Invoice and the Customer want to return Something...I will use as Credit Memo...Is that right?..hoping for your reply..TY

rajpatelbca

Silva wrote:

Hi

I have a Question...what is the Difference Between the RETURN ORDER and CREDIT MEMO? Hoping for your reply..THANKS

let me explain with one example.

suppose your company have sold some good to customer A. and in case the good supplied by u is not acceptable for customer A. then if customer return good to you at your warehouse then u have to use return order which will be resulted in inventory level increased and same value effect. in case if customer is agree to accept that good at new price given by u. eg. goods amount is 5000 and ask customer to pay 4000 then in this situation u have to create credit memo of 1000.

kine

Silva wrote:

Hi

So if Post the transaction as Order then,the Customer want to return some item.. I will use return order? and when I post the transaction As Invoice and the Customer want to return Something...I will use as Credit Memo...Is that right?..hoping for your reply..TY

This is not the correct association. Return Order works as order - you can receive the items in one step and post Cr. Memo in second step (it means like on Order you can do the Ship and Invoice steps). On Cr.Memo you can do only the Post as on the Invoice. But result of Return Order and Cr.Memo if setup is done in some way, the result is same - returned Item and/xor returned money.

garak

The explanation of kine is simple and true ;-)
If you don't understand this, press the "Help" Button on Form "return order" / "credit memo". There are also explanatory notes.

regards

rajpatelbca

sorry for that my previous post it was bit confusing #-o

thanks kine,garak for your explanation about it.

Thanks once again.

Silva

Hi

Thanks for the Explaination..i really appreciate it.. =D>