Hi everyone — looking for the best practice in ERPNext for vendor promo rebates.
We buy Product A from Vendor A. During a promo window, Vendor A gives us a credit per unit sold (ex: $5.50 per unit) issued as a vendor credit / credit note (not a physical return).
What’s the recommended way to record this in ERPNext so that:
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it does NOT affect stock / valuation (no inventory movement)
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it reduces COGS for the same month/week the sales happened (so margins are accurate)
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it’s traceable to the supplier and related PO/PI (we allocate promo sales back to certain POs)
Example: PO has 1,000 units, we sell all 1,000 during promo, rebate is $5/unit → we want a $5,000 credit applied against that PO/PI balance (if not paid yet). More specifically, we want that rebate to reduce COGS for that specific SKU (not just show as other income).
How we intend to do it (want to confirm this is correct):
We’re planning to create a Purchase Invoice Credit Note (Return) linked to the original Purchase Invoice, with Update Stock unchecked, and enter a line for the rebate as (promo units × rebate rate). Ideally this would post to a contra-COGS account for Product A / that item group, so it reduces SKU-level COGS.
Is this the right approach, or is it better to do this via Journal Entry (or another method)?
Thanks.