We just started using Adagio IC and are looking for some guidance on how to process credit notes in Adagio IC. We first thought of processing it as an adjustment but that would not update our payables for the supplier who issued the credit note. I have also considered processing the credit note seperately in AP and adjusting the inventory balance when the physical inventory reconciliation is done. However, I am not sure what impact processing the credit note in AP will have. Will it credit my inventory or will it credit cost of sales? Has anyone else dealt with this? Thanks.

Hi Sanovnik

This is one of the many purchasing/receiving functions you cannot do easily using Adagio Inventory.

Purchase (and returning) inventory is much better handled using Adagio Purchase Orders than directly in Adagio Inventory. In that module you can process returns and have them automatically flow to the vendor's account as a credit.

The only way to do what you want without the PO module is to do an adjustment in Inventory (make a note of the GL adjustment account), and then to enter a credit note in AP, for the same amount and using the same GL adjustment account.

Regards

Steve