Create and manage vendor credit notes
If you make a purchase from a vendor and then later return the goods, or if you need to cancel a bill, you can quickly create a credit note from the original bill. You can also create a stand-alone credit note, and allocate this to any outstanding bills for the relevant vendor at a later date.
Before you create a credit note, if you haven’t done so already, you need to create a contact record for your vendor. If you regularly purchase the same products from your vendors, you can also create records for these.
To create a vendor credit note from a bill
The credit note appears with the same details as the original bill.
- From Expenses, click Vendor Bills.
- Click the bill you want to credit.
- Click Add Credit Note.
If necessary, change the details.
Note: The credit note total appears at the bottom of the credit note.
- If this is a draft credit note, select the Save as draft check box. You can return to the credit note at a later date when you’re ready to update the ledger accounts and clear this check box.
- If required, enter any notes
- Click Save.
If the credit note covers the full value of the bill, the status appears as Paid; otherwise, the status appears as Part Paid.
To record a stand-alone vendor credit note
- From Expenses, click Vendor Bills. Alternatively, you can click Vendor Credit Notes.
- Click New Credit Note.
- Enter the following information:
Vendor. Enter the vendor name. As you type, a list of vendors appears for you to select from.
Tip: To add a new vendor, click Add a vendor. Enter the relevant information and Save.
- Credit Date. Enter the date of the credit note.
- Vendor Reference. Enter a reference, for example, the credit note number.
- Reference. If necessary, enter any additional reference or details.
To record the purchase of a specific product, enter the name of the product in the Search for Product field and then choose the relevant product.
Note: The product information automatically completes in the next available line. If necessary, you can change this information, for example, the quantity or unit price. To add a new product, click Add product. Enter the relevant information and Save.
- To add more products, repeat the step above.
If you don’t want to add a product, enter the following information:
- Description. The description for the credit, for example the items originally purchased.
- Ledger Account. Choose the ledger account.
- Qty/Hrs. Enter the quantity of items the credit is for.
- Price/Rate. Enter the net value of the credit.
The total gross value of this item line shows under Total.
- If you’ve created transaction analysis types, for example departments, click the Finder (arrows icon, to the right) and choose the relevant analysis category.
To add more transactions, on the next line, repeat as above.
Note: If you want to save this credit note as a draft, for example, because you need to check some details with your vendor and don’t want to update the ledger accounts, select the Save as draft check box. When you’re ready to update the ledgers, open the draft credit note, make any changes as necessary, and clear the Save as draft check box.
- If required, enter any notes.
- If you want to attach a file (for example, a copy of a receipt), click the Attachment button, click Upload files, and then browse to and double-click the file. Learn more about attachments
- Click Save.
The credit note remains outstanding until you allocate it to a bill or the vendor sends you a refund.
To manage an existing credit note
- From Expenses, click Vendor Credit Notes.
- Click the required credit note.
If this is a stand-alone credit note, here you can edit the existing information. To do this, follow the instructions in the previous section. If it’s been allocated to another transaction, you can’t change it. For more information, see Edit or void a vendor credit note.
You can also record a refund against the credit note as well as change the credit note status to Set as Disputed.
Note: If you dispute a credit note, the values remain in your accounts. If required, you can clear the dispute status by clicking More and then Clear Dispute.