Use this to record the details of your supplier credit notes and match them to purchase returns and / or goods received notes (GRNs).
If you have chosen to use disputed invoice processing in the POP settings, you can record the credit note and mark it as disputed. A disputed credit note can only be accepted and posted or deleted.
Recording an credit note can be carried out by several people at the same time provided they are not entering credit notes for the same supplier.
This is when a supplier credit note is matched to the purchase return to determine if it should be paid or queried before any payment is made.
All purchase return items regardless of type (stock, miscellaneous, service/labour and free text) are displayed when entering invoices or credit notes.
The supplier credit note is matched to the goods received note (GRN) and to the purchase return. When items are not matched to a GRN, a warning is displayed.
For credit notes:
GRNs are only displayed for stock and miscellaneous item types.
Service/labour or free text items are not marked as despatched when dealing with a return.
Discrepancies between the credit note and the purchase return or even the record of goods despatched to your supplier can occur. As you record a credit note, discrepancies are highlighted. In certain cases the discrepancies may prevent you from recording the credit note. If you have chosen to use disputed invoice processing on the Order Processing tab of the POP settings, then you can record such invoices and mark them as disputed.
While the credit note is marked as disputed no update to other modules is made. This means there will be no evidence of the credit note being received in either the Purchase Ledger or Nominal Ledger. Update only occurs once the credit note dispute is resolved.
When dealing with:
A quantity lower than the return quantity, this may indicate some or all of the goods have not been returned to your supplier, a warning is displayed but you can continue to submit the credit note.
Note: Three-way match only (credit note matched to the GRN): if you accept a credit note and you have not yet returned the goods to your supplier, when the items are despatched the system will automatically mark the GRN as credited.
A credit note quantity that exceeds the despatched quantity, you can enter the credit quantity and accept the discrepancy or mark the credit note as disputed provided your system is set to process disputed credit notes.
Note: If you are using a three-way match, the total credited GRN quantity cannot exceed the item's credited quantity.
Provided a credit note is not marked as disputed, recording it as received results in an update to:
The Nominal Ledger. The balance sheet nominal accounts for creditor control and tax control are both updated.
Postings are also made to a third nominal account. The nominal account updated depends on the item type used to specify the goods or services in the original purchase return. For item types, stock and miscellaneous, the default nominal code set up on the item is used. For service/labour items or goods/services specified using free text items in the purchase return, the default nominal account set up on the supplier's account is used. However, if you amend the displayed default nominal account then the posting is made to the nominal account selected as the credit note is entered.
Open: Purchase Order Processing > Order Processing > Record Purchase Credit Notes.
Enter the credit note details:
| Supplier Account |
Select the supplier account and the required purchase returns. |
| Credit note date |
Enter an credit note date. The system date is displayed automatically. |
| Exchange Rate |
If you are dealing with a foreign currency supplier, enter the required exchange rate. The exchange rate stored in the exchange rate table is displayed . |
| Reference (Optional) |
Enter a reference, if required. Check if the invoice has already been recorded. Click Check. If the credit note date and reference are not unique a warning is displayed. |
|
Goods Value and Tax Value (Optional) |
Enter the goods and tax values for the credit note. This helps you to check that the values on the matched purchase return are the same as entered credit values. If the selected items do not match the entered goods and tax values a message is displayed. If values are not entered here, the credit note values are calculated from the selected return lines. |
Match to the required purchase return lines and GRN's:
Use Find to search for an item in the displayed list and use View return to display full details of a purchase return.
Select the required purchase return lines from those displayed in the Select return items to match to credit note section of the window.
Note: If an item has not been authorised and you have not chosen to allow processing of unauthorised purchase orders on the Order Processing tab of the POP settings, the order line will be displayed but you will not be able to select it.
If required, you can change the credit note quantity in the Qty to be Credited column and the unit price in the Discounted Unit Price column.
Note: The quantity will be modified if it is not an allowed amount (according to the unit's precision setting).
Use Find to search for an item in the displayed list and use View return to display full details of a purchase return.
To display the associated GRN's, select the required purchase return lines from those displayed in the Select return items to match to credit note section of the window.
Note: If an item has not been authorised and you have not chosen to allow processing of unauthorised purchase orders on the Order Processing tab of the POP settings, the order line will be displayed but you will not be able to select it.
Check the information. To post the credit note click Post credit note.
The purchase ledger Enter Purchase credit note screen appears showing the values you have entered. You can amend tax values and take care of rounding discrepancies where required. The exchange rate cannot be amended.
If you have system down time whilst posting POP credit notes,your credit notes may not post correctly.
When this occurs the invoice details are saved and can be posted using the PL > Enter transactions > Batched transactions screen. These invoices will have a batch header title incorporating the date and time the system down time occurred.