Resolve a disputed invoice with a credit note

About resolving a disputed invoice with a credit note

Credit note details are entered to satisfy a disputed invoice and associated order items.

A credit note can be used to resolve a single invoice. Should your supplier issue you with a credit note to resolve the dispute on two or more invoices, you must enter the credit note in sections to resolve the disputed invoices as required. This will result in the credit note appearing as several smaller transactions in the Purchase Ledger.

Note: This activity is intended to deal with a credit note that can be used to resolve an invoice exactly by matching the order lines and assigning the credit note. It is not intended to deal with a blanket credit note that is issued in settlement of several disputes where the credit note value cannot be related to particular order lines. If you are dealing with a blanket credit note, we recommend that you accept and post the disputed invoices in Purchase Order Processing and then record the credit note in the Purchase Ledger.

If the credit note is intended to resolve a single invoice; before entering the details of a credit note you can check whether the credit note has already been recorded. By entering the credit note reference and date, the system checks for an existing record by matching this criteria. A warning is displayed if an existing record is found.

Credit amounts are entered for price and quantity. You can enter amounts that are less than the invoiced amounts, but you cannot exceed the invoice values. If you are dealing with a credit note that exceeds the invoice values, enter credit values to match the invoice values in this module, then record the additional amount using credit note entry in the Purchase Ledger.

Once the credit amounts are saved the Enter Purchase Credit Note window is displayed. You can use this to amend the VAT values and take care of any rounding discrepancies. Then the Enter Purchase Credit Note window is displayed. You can use this to amend the VAT values and take care of any rounding discrepancies. The exchange rate cannot be amended.

The invoice is no longer disputed and the relevant postings are made to the integrated modules.

Once the details have been posted, neither the credit note or invoice can be amended in the Purchase Order Processing. However you may be able to reverse the transaction in the Purchase Ledger.

To resolve a disputed invoice with a credit note

Open: Purchase Order Processing > Order Processing > Disputed Invoices.

Select the disputed invoice from those displayed.

Note: All invoices currently marked as disputed are displayed. Use Dispute Detail to view additional information about the disputed invoice.
Click Resolve with Credit.
The Resolve Disputed Invoice with Credit Note window is displayed.

Note: All items marked for the disputed invoice are displayed. If items were not matched during invoice entry; you must amend the disputed invoice, marking items for invoice, before you can resolve the invoice with a credit note.
Use Find to search for an item in the displayed list and use View Order to display full details of a purchase order during this activity.
Check if the credit note has already been recorded (optional). To do this, enter the credit note date and reference and click Check. If the credit note date and reference are not unique, a warning is displayed.
Select the item to be resolved and click Enter Credit Amounts. The Enter Credit Amounts window is displayed.
Enter the credit amounts for quantity in the Quantity credited box.

Note: The quantity will be modified if it is not an allowed amount (according to the unit's precision setting).
Enter the credit amounts for price in the Disc. unit price credited box.
Check the overall values displayed before saving the information.
Click OK to save the information. You return to the Resolve Disputed Invoice with Credit Note window. The Credit Value column displays the entered value.
Continue to select items and apportion the credit value accordingly.
To post the details, click Post Credit Note on the Resolve Disputed Invoice with Credit Note window. The Enter Purchase Credit Note window is displayed. This is filled with the values you have entered. Use the Enter Purchase Credit Note window to amend VAT values and take care of rounding discrepancies where required. The exchange rate cannot be amended.
The Enter Purchase Credit Note window is displayed, showing the values recorded for the invoice. You can amend VAT values and take care of rounding discrepancies where required. The exchange rate cannot be amended.