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Record supplier credit notes

About recording credit notes

Use this to enter credit notes individually and post them to a supplier's account in the Purchase Ledger. Credit notes are entered onto the Purchase Ledger in the same way as invoices. To enter your credit notes in a groups, use batch transactions.

If you are using authorisation, the Requires authorisation box is automatically selected. If the credit note value is less than the authorisation limit, you can clear the Requires authorisation box. If the credit note requires authorisation, the nominal ledger is not updated until the credit note is authorised.

By entering a credit note you reduce the turnover for the relevant supplier's account. You can also reduce the supplier's turnover values by reversing an invoice that has been posted to the supplier's account record.

If you want to produce a printed credit note and record the return of a stock item, use the Purchase Order Processing module.

Outcomes

To record credit notes

Open: Purchase Ledger > Enter Transactions > Credit Note.

  1. Select the supplier account you want to add a credit note to.

  2. If the supplier's account is in a different currency, accept or amend the Exchange rate.

    You can change the exchange rate if the currency Amendability setting is set to allow this in Accounting System Manager.

  3. Enter the credit note details and amend default values where required.

  4. Enter the Transaction details, Goods value, Discount percent, Discount days and Discount value.

    Note: When settlement discount is entered, VAT is calculated on the Goods value less the Discount value. If the Country code on the customer record is the Republic of Ireland (country code IE) then the VAT is calculated at the goods value regardless of any settlement discount.

  5. If required, enter the Project Analysis details for each item on the credit note.

    The Project Analysis tab is only available if you are using the Project Accounting module.

  6. Accept or amend the Tax analysis (VAT) for each item on the credit note.

    If you are working with goods items which have different tax (VAT) rates applied to them, ensure the tax value in the tax analysis matches the tax value (VAT) for the transaction.

  7. Accept or amend the Nominal analysis requirements for each item on the credit note.

    You can change the Narrative to make it more meaningful for your business.

    Note: Both positive and negative values can be entered in the Goods Value for nominal analysis.

  8. Click Save to store the credit note.

    Click Save and Retain A/C ref to save the credit note but retain the customer account. This means that you can record another credit note for the same customer.

See also

Other tasks

Record supplier invoices

Batch transaction processing (Purchase Ledger)

Supplier payments

Reference

Authorise transactions

Reverse supplier transactions (Purchase Ledger)

Processing (PL settings)

Record stock returns

Set up currencies

Foreign currency transactions

Supplier Current Transaction Enquiry workspace

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