Recording Supplier Credit Notes

Some Of the nominals and ledgers used in this topic may be different to those in your chart of accounts.

This topic assumes that you are familiar with the completion of document input forms. If you need more detailed instructions (such as the selection of dates, periods, and accounts, etc.) please see Completing Document Input Forms.

A supplier credit note can be applied to the supplier account and used against future purchases. The credit note debits the Purchase ledger control nominal and credits the applicable VAT, expenditure, and account nominals. Credit notes can be created from two different locations - either directly from the applicable supplier account (this method is quicker, and populates the invoice with the supplier details) or via the Documents menu.

1. Select Documents, then select Document Input from the menu.
   
2. The Document Input dialog is displayed. Select Drill (...) in Document type, then double-select to select PCRN - Purchase Credit Note from the Select a document type dialog.
   
   
3. The Purchase Credit Direct To Books input form is then displayed in Input form. The Number defaults to the next number in the sequence for the selected document type.
4. The Date defaults to the current date and the Period defaults to the current accounting periods. The date/period should reflect the date that appears on the credit note. If the date needs to be changed, select the down arrow and select the required date from the calendar. If the period needs to be changed, select Drill (...) in Period, then double-select to select the required period from the Select a period dialog.
   
5. Select OK to confirm your selections. The Purchase Credit Direct To Books document input form is displayed populated with the details entered in the Document Input dialog.
   
6. Complete the form in the same way as you would a non order purchase invoice, ensuring that the applicable nominal and account details are the same as the original purchase invoice.
7. If the credit note relates to a prior invoice that was posted with a prepayment range, then the Prepayment Range column can be populated to reduce the prepayment amount across the same range. For more information, please see Overview Of Prepayments.
   
8. Repeat the process for any additional line items, then press F5 to post the document.
9. You are then given the opportunity to enter any discounts included in the credit note in the Enter Discounts dialog. The Due date for the credit note defaults to today’s date enabling the credit to be applied immediately. Select OK.
   
10. A link to the posted invoice is then displayed in the Documents Posted panel.
    
11. Select the link if you want to view the transactions posted for the invoice via a Document Enquiry window.
    
12. The credit note is applied as a debit to the supplier’s account, reducing the overall balance due. The credit note document remains open until it is allocated against a future invoice that is posted in order to reduce/clear the outstanding balance.