We origninally accepted raw material, issued it to a work order and then discovered some unseen problems with it and returned it to our vendor. The PO has been closed and paid.
 
I reversed the material issue so the material is now sitting in inventory.  How do I remove it from inventory and apply the vendor's credit?  I remember some old postings that suggested creating a negative PO would do the trick, but now I can't receive a negative amount, so I don't know where to go from here.  Any suggestions.   Thanks.

Just yesterday I entered a negative PO, went in and received negative material and then did AP-C enter PO invoice, again with a negative amt due, which put a credit invoice in the payables.  
Ragine

Would this had worked if you re-open the p/o and rejecte the pcs from the original p/o?
Juan