Record customer credit notes
How to enter a credit note
Open: Sales Ledger > Customer List > Credit Note.
- Select the customer account you want to add an invoice to.
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Enter the details
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Enter the Credit Note date.
- To check that the Reference and date combinations are unique, click the
button.
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Enter the Goods value.
The discount values are calculated automatically. You can change these if required.
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Enter Nominal & VAT Analysis:
When you select a customer account, the default nominal code and default VAT code from the customer's account are entered. You can override these if required.
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Accept or amend the VAT analysis for each item on the sales invoice.
If you are working with goods items which have different VAT rates applied to them, ensure the VAT value in the VAT analysis matches the VAT value for the transaction.
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Accept or amend the Nominal account specified.
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.
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Enter the Project Analysis.
If you want to assign the invoice to a project enter the project details on the Project Analysis tab.
Note: The Project Analysis tab is only available if you are using the Project Accounting module.
- Click Save.
How to enter a foreign currency credit note
- Select the customer account.
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Enter or amend the exchange rate. Click
to change exchange rate.You always enter the goods value in the currency specified on the customer's account.
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If the customer account is in a different EU country, and the invoice is a triangulated transactions select Triangulated.
This makes sure that the transaction is marked with the correct indicator on the EC Sales list.
- Enter the remaining invoice details as above.
- Click Save.
The rate is set in the Currencies and Exchange Rates option in Accounting System Manager is used by default. This can be the Single or Period rate depending on the customer.
You can only change the exchange rate if the exchange rate is set to be amendable on the Currencies and Exchange rates (ASM > Settings > Currencies and Exchange Rates).
How to enter a free text credit note
Open: Enter Transactions > Free Text Invoice.
- Select the customer account.
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Enter the Credit Note header details
- Their reference
- Credit Note date
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Exchange rate
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Enter the line details:
- Description
- Quantity
- Unit Price
- VAT Code
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Enter the nominal account.
The nominal account specified on the customer account is displayed by default.
Note: 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.
- Click Save. This prints the credit note.
The credit note prints straight away.
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Preview - the credit note is previewed and must be printed straight away. There is no reprint option.
Note: You can't use the Send to Excel option for free text credit notes.
- Spooler - the credit note is sent to the spooler and is printed from there. This way you can reprint it if required.
You can use free text invoices to print a one -off credit note, if you're not using Invoicing or Sales orders.
If you want to keep a history of your credit notes, we recommend that you use Invoicing. You can create credit notes with free text lines if you're not using stock.
The credit note numbers are set in the Invoicing settings, and are shared with Invoicing and Sales Orders.
Questions
This depends on the Transaction date validation settings entered in Accounting System Manager.
If the Credit Note Date entered is in the Unacceptable range, it has a red highlight and the credit note cannot be saved.
If the date is in the Acceptable range, it has a yellow warning highlight and can be saved.
- The customer's account balance is reduced by the gross value (including VAT, if appropriate) of the credit note.
- The account's turnover for this period (or for the next, if a future period's date is entered) is decreased by the net amount (goods value) of the credit note.
- The sales account(s) (profit and loss) in the Nominal Ledger are debited with the goods value according to the analysis.
- The VAT output account(s) (for the balance sheet) in the Nominal Ledger are debited with the value of the VAT if included.
- The debtors control nominal account (for the balance sheet) in the Nominal Ledger is credited with the gross value of the credit note.
- The VAT file is updated with the goods and VAT value for each VAT rate used. The entry is made for the current ledger period, unless the posting is for a future period when the appropriate month is used. This ensures that transactions entered late, after the month has been closed, are included in the next VAT Return.
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