Credit Notes

How do I add customer invoice credit note (credit note adjustment)?

• A credit note is a document sent by a seller to the customer (vendor to a purchaser), notifiying that a credit has been made to their account.
• A credit note may be issued because:
  • a customer returned the goods or rejected the services for any number of reasons.
  • the goods were damaged in some way.
  • there was a mistake in the price on the original invoice.
  • the customer overpaid the original invoice.
• A credit note is created in a very similar format to Customer Invoices, except it reduces that amount owed to you by a customer, or that you owe to a supplier. i.e. A credit note (credit adjustment note) is effectively a negative invoice.
• A credit note is raised against a customer or supplier, allowing the customer or supplier to be held in credit until a future invoice is raised.

To add a customer invoice credit or adjustment follow these instructions: 

• Click on the Debtors toolbar icon.
• Click on the Invoices tab.
• Click on the Add button.

For this example: Old MacDonald purchased 30 weaner steers but only 26 weaners could fit on the truck. We are giving Old MacDonald a Credit Note (refund) for the 4 weaner steers he did not receive.

• Select the Customer you're giving credit to from the drop-down menu.
• Date - select.
• Form - select from drop-down menu. e.g. Credit Note.
• Ref. - create a reference number. (e.g. original invoice number was INV-003, credit note relating to that invoice CN-003).
• Add Account, Enterprise (if applicable).
• Enter amounts for credit as negative amounts. i.e. put a minus sign in front of the amount.
• Click the Print button to preview the whole credit and then click on the printer icon if required.
• Click OK to save.

How original invoice and credit note appear in the list of Unpaid Invoices:

How to apply a credit note to a payment:

• Click on the Cashbook toolbar icon.
• Click on the Add button.

• Click Yes to the Confirm message: 'Do you want to enter transactions for "Working Account", in company file "Company ABC"?'

• Click on the Receipt (deposit) radio dial.
• Date - click on drop-down arrow to select date from calendar.
• Reference - e.g. DEPOSIT, D/CREDIT.
• Click on the Invoice button.

• In the Current Debtor Invoices window, tick the check box in the P colum next to the applicable customer Name.
• Adjust Amt.Paid accordingly if the amount differs from the actual amount paid.
• Click OK button.

• Invoice information automatically fills dissections of the Add Transactions window:
• Click on the OK button to save.

Click on the following link for Recording an advance payment from a customer. (i.e. Creating a Credit Note to apply to a future invoice yet to be generated.)