When processing returns we enter the amount owed to us by our vendor on a negative receipt (i.e. 1 - item ABC @ $50.00). Later the credit arrives from the vendor at times it may be a different amount (i.e. 1 - item ABC @ $30.00). This amount is all we can recover of the cost so when entering the credit we call up the RC# and enter 30.00 in the Adj cost field and post it as a negative invoice to Payables. I'm confused as to what happens to the difference?

Does it:

A) Go back on to the inventory item as a cost?
B) Go to our GL rounding error account as it's set up in POA profile?
C) Go to our Account Payable Clearing account as it's set up in POA profile?
D) Go somewhere else?

Please advise. Thanks.