How to make vendor credit memo:

Vendor credit memo is made after you have made a purchase from your vendor. When you find any defect in your purchased item you return that to your vendor and for that sake you made “vendor credit memo”.

Click on the “Tasks” and then “vendor credit memo”:

When you click on the option window will appear like:

You select the Vendor ID, fill the date and give a credit no. So when you choose the vendor window will turns to:

You select the Invoice No from this and then fill the “Returned” quantity like:

Filling the returned amount simply type “ALT+S” or click on the “save” button.