Credit note posting

Introduction

A credit note is one of the Fees Ledger Postings available. For further scenario's on posting credit notes click here.

A credit note can be posted by either adhoc posting, or through batches.

To post a credit note through Ad-hoc posting:

1. Enter the Fees Ledger.

2. Click Posting.

3. Click Adhoc Posting.

Alternatively, to post a credit note by batches:

1. Enter the Fees Ledger.

2. Click Posting.

3. Click Batches.

4. Select an existing batch and click View, or select New for a new batch.

The Fees to period screen displays.

To post a credit note:

1. Click on the posting type Credit Note.

2. Select the client that the credit note is be posted to. For example, A002. To select a client, either type the Client Identifier, or select using the magnifying glass.

3. Type in the item date of the credit note, or press the tab key on the keyboard to enter todays date.

4. Type in the amount that is going to be reduced from the clients debtor balance. For example, enter 300 if you wish to reduce what the client owes by £300.

5. A Fee Ledger credit note can be posted VAT inclusive or VAT exclusive. It is recommended that Post amounts VAT inclusive is NOT selected.

6. Enter a reference for the credit note. For example, CRE001. The reference can be shown on the credit note sent to clients, or used to identify the credit note.

The Fees Ledger provides an Automatic reference generation facility, so that postings made within the Fees Ledger can be automatically numbered consecutively.

7. Enter the identifier of the VAT rate. For example, enter 1 for the VAT Rate 1 which is 17.5%. The VAT Rate is used to calculate the VAT Amount of the credit note automatically.

In specific circumstances credit notes may be required to be posted to multiple VAT rates. For example, a £100 credit note may need £80at 17.5% and £20at 10%.

To use this functionality, leave the VAT field empty and the Fees Posting VAT Breakdown screen will display when Post clicked.

The VAT amount is the value of VAT that is going to be applied to the credit note. For example, a credit note for £100 with a VAT rate of 17.5% will have a VAT amount of £17.50

•  If it is required to change the VAT amount type in the required value.

The Total field displays the total value of the credit note VAT inclusive.

8. Press the tab key to use the default nominal code as set in the Fees Ledger Options. Alternatively, type the required nominal or select using the magnifying glass.

To post to multiple nominal codes, ensure that the nominal code field is left empty. When the credit note is posted the Fees nominal breakdown screen displays, where multiple nominal codes can be entered.

9. Select the Proforma option to make the posting a proforma credit note, or leave it empty to account for VAT on the credit note.

A credit note can be posted to the Time Ledger (where it is possible to adjust the clients WIP figures), or can be posted to remain within the Fees Ledger.

• Cross Match Credit Notes with invoice

• Post credit note using the distribution of WIP screen

• Credit Notes that do not affect the time ledger

Credit Notes that affect the Time Ledger

This method of posing a credit note will clear the invoice value and unmatch the timesheet and expense postings from the invoice.

To post a credit note using this method:

1. Select the Adjust WIP option to pass the credit note to the Time Ledger.
   

2.  To ensure this option is always selected, derelict the option, Credit Notes affect WIP unless you untick the 'affect T/L' box, within the Fees Ledger options, WIP write out tab.

Or completely write back time for the invoice specified in Cross Reference below.

2. Select this option to cross reference the credit note to an invoice.

3. Enter the reference of the invoice that the credit note is to be matched to. For example, INV001.

4. To post the credit note click Post. To cancel, click Close.

Credit Notes that affect the Time Ledger

This method of posting a credit note will automatically posts a debit in the Time Ledger that can be matched to the final invoice.

1. Select Adjust WIP to pass the credit note to the Time Ledger.
   

2. To ensure this option is always selected, derelict the option, Credit Notes affect WIP unless you untick the 'affect T/L' box, within the Fees Ledger options, WIP write out tab.

2. To access the distribution of WIP written back screen, select the Several jobs option.

3. Click Post to access the distribution of WIP written back screen.

Credit Notes that do not affect the Time Ledger

Select this method of posting a credit note to affect the Fees Ledger only. Credit notes will NOT be passed to the Time Ledger and so will not appear on any Time Ledger reports.

1. To ensure that a credit note is not passed to the Time Ledger ensure that Adjust WIP option is NOT selected.
   

2. To ensure Adjust WIP is always deselected, deselect the Credit Notes affect WIP unless you untick the 'affect T/L' box option, within the Fees Ledger options, WIP write out tab.

Credit note template

A Credit note template drop-down box is available for the user to select the template for Credit Note output.

1. Click Post to post the invoice, or Cancel to close.