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Use this to enter credit notes and free text credit notes directly onto to a customer's account in the Sales Ledger. Credit notes are entered in the same way as invoices.
By entering a credit note onto the ledger you reduce the turnover for the relevant customer's account. You can also reduce the customer's turnover by using the reverse posting facility.
Use free text credit notes to give credit for non-stock items or services and be able to print a physical credit note for these. The credit note number printed on the credit note is the Next credit note number, set in Accounting System Manager System Settings Operational settings tab.
If you want to produce a printed credit note from a stock item then you need to use the Sales Order Processing module.
From April 2015, the HMRC has introduced new rules around how VAT is calculated for settlement discounts.
Under the new rules, the VAT on an invoice is only discounted when it is paid within the settlement discount period. Previously the VAT was discounted regardless of when the invoice was paid.
On each invoice, VAT is calculated by default on the full invoice value. If the invoice is paid within the settlement discount period, a VAT adjustment is required, to account for the discounted VAT.
To make this change in Sage 200, you must apply the new VAT rules to your system. To do this, select the Apply new VAT rules for early settlement discount option in the System Settings.
For further information about how to process transactions with settlement discounts after April 2015, see Settlement discounts after 1st April 2015 (UK only).
In Ireland, VAT is calculated on the full value of the invoice regardless of any settlement discount.
Open: Sales Ledger > Enter Transactions > Credit Note.
If the customer's account is in a different currency, accept or amend the Exchange rate.
You can only change the exchange rate if the exchange rate is set to be amendable in Accounting System Manager.
Enter the Transaction details, Goods value, Discount percent, Discount days and Discount value.
If the VAT on the credit note needs to be discounted, select Settled immediately. Otherwise VAT is calculated at the full goods value.
If you need to record a credit note to account for the VAT discount, enter the VAT amount in the VAT value field. Leave all other values as 0.00.
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.
Accept or amend the VAT analysis for each item on the sales credit note.
If you are working with goods items which have different VAT rates applied to them, ensure the value in the VAT analysis matches the VAT value for the transaction.
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.
Both positive and negative values can be entered in the Goods Value for nominal analysis.
Click Save, to store the credit note.
Click Save and Retain Code to save the credit note but retain the customer account. This means that you can record another credit note for the same customer.
Open: Enter Transactions > Free Text Credit Note.
Credit note date
Enter the credit note date.
If required, change the exchange rate if the credit note is for a foreign currency customer.
You can only change the exchange rate if the currency is set to be amendable on the Settings tab of Currencies & Exchange Rates in Accounting System Manager.
Select this if the invoice is for a EU currency customer and it is a triangulated transaction. This makes sure that the transaction is marked with the correct indicator on the EC Sales list.
The Credit note totals are calculated automatically.
If required, you can change the Nominal Account using the drop-down list.
The nominal account specified on the customer account is displayed by default.
If the nominal account is not a valid account, a warning message will appear. If you continue with the posting without changing the nominal account, the invoice will be posted to the suspense account.
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Last updated: 22 March 2016
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