This article covers how to handle a situation where the rebate or holdback payment received from a vendor or supplier is greater than the cost adjustments you have processed in Blackpurl. You will need to create a Credit Note in Xero for the difference, then reconcile the bank payment against those credit notes.
To process a Unit Cost Adjustment in Blackpurl first, see Process a Unit Cost Adjustment.
Scenario
The dealership received a payment from a vendor or supplier for rebates or holdbacks, but the amount received is higher than what was processed through Blackpurl. In this case, you need to create a Credit Note in Xero on the vendor or supplier account for the difference between the Blackpurl cost adjustment total and the amount actually paid.
Part 1: Create the Credit Note in Xero
1. In Xero, go to Business in the header, then select Purchase overview.
2. Click New and select Credit note.
3. Fill in the credit note details, including:
The Cost of Goods (COGS) account you want to credit
The amount
The date
The tax type
4. Click Approved to save the credit note.
Repeat this process until all credit notes on the vendor or supplier account match the total amount received from the vendor or supplier.
Part 2: Process the Payment Against the Credit Notes
1. In Xero, go to Business in the header, then select Purchase overview.
2. Click See all to view the full bills list.
3. Find the credit notes you received the payment for.
4. Select each credit note one at a time and process the payment for each one by clicking Add refund.
Part 3: Reconcile the Bank Line Item
1. Go to the Xero Dashboard and click Reconcile on the appropriate bank account.
2. Find the payment amount received in your bank that you want to reconcile with the credit notes, then click Find a match.
3. Search for the credit notes by name or amount.
4. Click the checkbox beside the matching line. The amount moves to the bottom section of the page and displays with a green indicator.
5. Click Reconcile to complete the reconciliation.
