Does anyone have a good way to handle vendor credits for FAM? We plan to enter vendor bills using expenses but we run into issues if we need to return something. So example we order 10 laptops with a $10,000 bill. We split that into $1000 each but 2 of them are bad so we issue a vendor credit for it. Vendor Credit is a [Debit - AP] // [Credit- FAM Account], but then we need to dispose it to get it out of FAM and there is a [Debit - A/D Laptops & Gain/Loss on disposal of asset] // [Credit - FAM Account]. This doesn't seem right.

yeah your loss on disposal should be offset by the vendor credit you received. Assuming no depreciation has taken place, this should sum to zero. This can be done via journal

Sorry could you expand on that. The vendor credit offsets the portion of the bill, but if the asset gets generated we will have to dispose and causes another entry. Is there something I am missing? (I removed depreciation for simplicity) Bill Asset (11/1/2019) D:Computer Hardware - Laptops $500 C:Accounts Payable $500 Asset gets generated Vendor Credit against Bill (12/31/2019) D:Computer Hardware - Laptops $500 C:Accounts Payable $500 Disposal (12/31/2019) D:Gain/Loss on Disposal of Asset - $500 C:Computer Hardware - Laptops $500

Yes that's right, if you coded the credit note to the fixed asset cost account, then your journal would be hitting the fixed asset cost account. The other option is there's a setting (Fixed Assets | Setup | System Setup) where you can allow negative asset cost (which should mean the credit appears as an asset proposal - not 100% sure on this as I've never enabled the setting but I guess you could link them with a common parent, maybe?) So resulting journals would be (I've included Depn in this example): Vendor Bill (Nov 2019) Dr: Computer Hardware - Laptops $360 Cr: Accounts Payable $360 Depreciation (Nov 2019) Cr: Accumulated Depn - Laptops $10 Dr: Depn Charge - Laptops $10 Depreciation (Dec 2019) Cr: Accumulated Depn - Laptops $10 Dr: Depn Charge - Laptops $10 Vendor Credit (Dec 2019) Cr: Computer Hardware - Laptops $360 Dr: Accounts Payable $360 Disposal (Dec 2019) Cr: Computer Hardware - Laptops $360 Dr: Accumulated Depn - Laptops $20 Dr: Gain/Loss on Disposal of Asset $340 Adjusting entry (Dec 2019) Cr: Gain/Loss on Disposal of Asset $340 Cr: Depreciation Charge $20 Dr: Computer Hardware - Laptops $360 My adjusting entry above is clearing the depreciation charge too otherwise you end up with a gain on disposal (it gets a bit tricky if your year end was Nov 2019 and you want to be 100% correct in your P&L)

Ah thanks that is the solution that I worked out. Didn't think about potential year end issues. I also noticed that allow negative values option, but haven't tried it yet.

I'm too much of a coward to try it, even in sandbox. We've had a few bad experiences with FAM so we don't work it too hard!