Record supplier credit notes

Find this screen

Open: Suppliers > Enter Transactions > Purchase Credit Note.

How to

Record a credit note

1. Choose or enter the supplier account using the Code, Short name or Postcode.

2. Enter the following:

   Credit note	Defaults to today's date
   Reference	The credit note number.
   Second Reference	An additional reference number if required
   	Checks whether you've already entered a credit note with the same date and reference number.
   Goods Value	The net credit note amount.
   VAT Analysis - Details	The details of the goods purchased. This prints on VAT Transactions (Education) report.
   Nominal Analysis - Code	The nominal account for the goods value.

The remaining fields display the defaults set on the supplier account. You can change these defaults when required.

Due date	This is calculated from the payment terms set on the supplier account.
Discount percent and Discount value	Displays the settlement discount set on the supplier account.
VAT analysis	Displays the default VAT rate set on the supplier account.
Nominal Analysis	Displays the default nominal account set on the supplier account.

Enter a foreign currency credit note

When you select a foreign currency supplier account, an additional exchange rate box is displayed.

Enter the following additional details:

Goods value	Enter this in the same currency as specified on the credit note. This should be the same as the currency on the supplier's account.
Exchange Rate	Click to change this. This defaults to the rate set on the Currencies and Exchange rates screen.

Use more than one VAT rate

If your invoice uses more than one VAT rate, you add them in the VAT analysis section.

You enter the total Net and VAT amount for the invoice in the Transaction details section.

In the VAT Analysis section, enter the following details:

1. Code - Enter the VAT rate or select it from the drop-down list.
2. Goods value - Enter the amount the VAT rate applies to.
3. VAT value - Enter the amount of VAT.
4. Details - Enter the details of the goods purchased.

For another VAT rate, click to add a new line and repeat.

Make sure the Totals in the VAT Analysis section match the Goods Value and VAT Value in the Transaction details section.

Use multiple nominal accounts

If you want to post an invoice to more than one nominal account, you can do this in the Nominal Analysis section.

You enter the total Goods (net) value in the Transaction details section.

In the Nominal Analysis section, enter the following details:

1. Code - The nominal account. Select one from the drop-down list.
2. Goods Value - Enter the amount that you want to post to the nominal account.

For another nominal account, click to add a new line and repeat.

Make sure the Totals in the Nominal analysis section match the net credit note amount (Goods value) in the Transaction details section.

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Useful info

About credit limits

You can specify a credit limit on the supplier account. When the balance on the supplier's account is more than the credit limit, the Available Credit box is highlighted and you'll see a warning message when you try to save the invoice.

This just lets you know that you've gone over the limit. You can still save the credit note.

About settlement discounts

To make sure that the settlement discount details are always entered when credit notes are entered for a supplier, you can add the settlement discount details to the supplier's account (Payment Terms tab). The Discount percent, Discount Days are then automatically applied each time you enter an credit note for this supplier.

You can change the discount details when entering an individual credit note if you need to. This does not update the supplier's account. If you change the Discount Value, the Discount Percent is updated and vice versa.

Use authorisation

If you have set up authorisation for purchase credit notes, you'll see a Requires Authorisation option in the credit note. This is automatically selected, and you can only deselect it if the value is less than the authorisation limit.

To set up authorisation, set Use Authorisation in the Supplier Defaults and Settings. See Set up authorisation for invoices and credit notes.

Attach files and scanned documents

You can attach files and scanned documents when you enter a purchase invoice or credit note, enter a nominal journal entry, view sales and purchase invoices, confirm goods received, or produce a VAT Return.

1. To add an attachment or scanned image:

   • When you create a purchase invoice or credit note, select Save and Attach.
   • When you enter a nominal journal entry, select Post and Attach.
   • When you produce a VAT Return, you'll be prompted to add attachments to the return.
   • When you confirm goods received, select the Attach Documents check box. You can add file attachments when you click Save to confirm receipt.

2. To attach a file:

   • Select Attach File, then browse to the file that you want to attach and click Open.

     Tip: If you can't see the file, change the filter to show All Files. By default, the attachments filter only shows these file types: pdf, jpg, png, gif, txt, xls(x), doc(x), msg.

   • Drag-and-drop a file into the Attachments list. For example, you can drag-and-drop multiple files from Windows Explorer, or single files from an Outlook email.
   • Once the file has been added, you can enter a comment or reference in the Description column.

3. To scan a document and attach it as an image, click Scan Using Device.

   • Select Start Scan to see a preview of the scan, and click OK to add it as an attachment.
   • If the scanned image doesn't look right, you can select Rescan to scan the document again.

For more information, see Scan and attach documents.

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What happens when I

Save a credit note?

The nominal account and supplier account are updated immediately, unless the credit note is dated in a future period. In this case, the transaction is posted when the period is opened.

• The supplier account balance is updated.

• The transaction is posted to the following nominal accounts:

  Nominal Account	Debit	Credit
  Purchase Account		Net goods value
  Tax Input		VAT
  Creditors Control Account	Gross value

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Fix it

Why is the invoice date highlighted in red?

This is because the credit note date does not fall within any of your accounting periods.

Check the date and try again.