Supplier Credit Issue
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Nick Garland
Supplier Credits, how do you guys create Supplier Credits in POS that can be used in Xero ? We like most Specialized stores have many Warranty Labour credits every week. Im struggling to find a way to enter these in that will show as a Credit in the accounting package ( Xero in our case ) so that we may pay off invoices with the credits to match our Spec account. Currently Im bypassing CL and entering straight into Xero, but this is a work around. In our previous Lightspeed system it was simple. I MUST be missing something ? Cheers Nick
Neil McQuillan - CEO Citrus-Lime
This is interesting.
I'm not super familiar with supplier credits. I assume they are used to pay off money owed to the supplier? e.g. You raise a purchase order for $5000 to Specialized, the goods come in and you now owe Specialized $5000. This can be partially paid with any accrued supplier credits? This does sound like something which belongs in the accounts system rather than a POS system as its a method of paying suppliers. I'm guessing you are doing something like creating a general ledger 'Specialized Supplier Credits' account in Xero or Quickbooks to which you post supplier credits which can then be used to pay off invoices with the balance being covered by a payment from the 'Bank Current Account' ledger account.
I'm interested as to how we could make this less work in the POS system, particularly how it worked in Lightspeed as that also doesn't have the concept of a balance sheet account to settle monies owed to suppliers. Open to thoughts on this.
This all hinges on the presumption that supplier credits are for things like warranty work rather than some kind rebates system for hitting certain purchasing targets.
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Landon Jenaway
Neil McQuillan - CEO Citrus-Lime Neil credits could be used for shrinking SOH or adjusting COGS examaple the supplier sent you the wrong bike or charged the wrong price. The labour credit i can see being a more complex issue.
Neil McQuillan - CEO Citrus-Lime
Landon Jenaway Landon Jenaway Can you explain why this happens, it will help me understand it better.
Why would you shrink SOH (I think this is stock on hand) do you mean adjusting stock costs which are already booked into the system? That might mess up integration to accounts packages such as Xero or Quickbooks.
When you say COGS do you mean adjusting the cost price on a sale after its completed? That one isn't something we could do, as we integrate to accounts packages and in some markets provide this to the tax authorities at the point of sale (Germany from memory). If we understand exactly what and why things are occuring we might be able to help with a solution.
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Landon Jenaway
Neil McQuillan - CEO Citrus-Lime Touch base with Debbie C she has listened to me a lot on this. By the way SOH is Stock on hand not after sale
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Landon Jenaway
Hi Nick, you get my vote
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Nick Garland
Landon Jenaway, Thanks....Id LOVE to know how stores are actioning these Credits in CL, if they have found a good work around OR indeed if Im missing something ??
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Landon Jenaway
Nick Garland, there is a half pathway for stock with "offline inventory" but it's just a stock take function with no interest in reconciling CLPOS with a credit from supplier. there is no interest from Citrus in solving this black hole with a negative stock control let alone pushing to Xero, also a credit that does not involve stock for example a labor credit i can't see that ever being solved at CLPOS to Xero level. (no, you are not missing something)
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Nick Garland
Landon Jenaway mmmmmmm that's not good. As it's a daily part of doing business for a bikeshop ( especially a Specialized store ) so I,m going to investigate the heck out of this.
Thanks for your reply. ANY other Spec stores reading this PLEASE advise how you are working these Supplier Credits. Its's only around 5 a week for us, so over 200-300 manual entries into Xero annually we need to do a year, but for large, multistore accounts it's probably 10 times that !!.
That's a lot of 'working around' and likely income that is not being accounted for in CL's reporting ??
Admin, tell me Im WRONG here please and there's a way that links with our accounting AND shows us the value of Labour and PUIS ( pickup in store ) we take in our business. Im struggling with this as it was EASY in Lightspeed !!
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Landon Jenaway
Nick Garland Suppler Credits notes be they for a stock movement/Cogs Adjustment or as you mention a labour Credit note, to me are just a part of trade and it disapointing to have this hole that makes our day harder and less productive.
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Nick Garland
Landon Jenaway100%
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Nick Garland
With the Impending Turbo Como SL fork recall imminent, we for one will have a dozen Warrantee Credits of $400 AUD due upon completion, that's $5K of Labour Credit we should be able to 'view' in the business dashboard in the coming month !! ( most Spec stores will be gearing up for this, maybe its a great time to find a solution )
Nick G