Enter customer credit notes

This is where you enter details of credit notes that you've produced outside Sage 200 and sent to your customers. If you want to print a credit note from within Sage 200 to send to your customers, use the Invoicing module.

Find this screen

Open: Customers > Enter transactions > Sales Credit Note.

How to

Record a credit note?

  1. Choose or enter the customer 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.
    Nominal Analysis - Code The nominal account for the goods value.

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

Due date

This is calculated from the payment terms set on the customer account.

Discount percent and Discount value

Displays the settlement discount set on the customer account.

VAT analysis

Displays the default VAT rate set on the customer account.

Nominal Analysis

Displays the default nominal account set on the customer account.

Enter a foreign currency credit note?

When you select a foreign currency customer 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 customer's account.

Exchange Rate

Click to change this.

This defaults to the rate set on the Currencies and Exchange rates screen.

Triangulated

Select this is if required.

This makes sure that the transaction is marked with the required indicator on the EC Sales List.

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.

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.


Useful info

About credit limits

You can specify a credit limit on the customer account. When the balance on the customer'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 your customer has gone over the limit. You can still save the credit note.

About settlement discounts

A settlement discount is where you offer a discount if your customer pays an invoice early. You usually specify the number of days the invoice has to be paid within to qualify for the discount.

If the invoice is paid within the agreed number of days, then you allow the full discount value when you enter the payment.

  • In the UK, if the invoice is paid within the settlement discount period, VAT is only charged on the discounted amount (Goods value minus Discount value).

  • In Ireland, VAT is calculated at the goods value regardless of any settlement discount.

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

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


Fix it

What if I make a mistake

To maintain the integrity of your data, you can't delete transactions once they're posted. However, you can make corrections which creates a reverse transaction with the same details as the original and a new transaction with your changes.

See Correct posted customer transactions.

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.


What happens when I

Save a credit note?

The nominal account and customer 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 customer account balance is updated.
  • The transaction is posted to the following nominal accounts:
Nominal Account Debit Credit
Sales Account Net value
Tax Output VAT
Debtors Control Account Gross value
Note - information

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