Customer Credit Notes

Overview

A Customer Credit Note reverses all or part of a Customer Invoice, for example, for returned goods or a price correction.
Credit Notes update the accounting and the inventory.
When a Credit Note is complete, the credited amount immediately reflects on the Customer Age Analysis.

You can create a Credit Note manually, or copy it from a Customer Invoice (Actions > Copy to Credit Note on the invoice). Returned stock goes back into inventory through a Materials Movement (Return), created by you or automatically (see Returned Stock).

For step-by-step instructions, see the Customer Credit Notes Tutorial.

Settings

User Settings

Note

The defaults are the values for new databases and new users. Your database may have different values.

Setting	Description	Default
Accounting > Customer Credit Notes - Access Allowed	Yes or No. Whether you can open Customer Credit Notes.	No
Copy Rules > Customer Invoices - Copy to Customer Credit Note	Yes or No.	No
Copy Rules > Customer Credit Notes - Copy to Materials Movement (Receive)	Yes or No. Whether you can copy a Credit Note to a Materials Movement to return the stock.	No
Default Templates > Customer Credit Notes	Your default output template for Credit Notes.	None
Default Transactions View > Customer Credit Notes	The list that opens with the module: Today All Pending All Active All Pending & Active	Today

Accounting Settings

Setting	Description	Default
Allow CI,CC,SI,SDN transactions to be created in the Ledger	CI = Customer Invoices, CC = Customer Credit Notes, SI = Supplier Invoices, SDN = Supplier Debit Notes. Yes: The documents are also posted to the ledger. No: The documents are only created in their own modules, and separate ledger transactions must be created for accounting purposes.	No
Default Set Customer Credit Note Accounts	Use Account from Entry Type setup: The account specified on the Entry Type is debited. Use Account from linked Invoice: The account that was credited on the invoice is debited.	Use Account from Entry Type setup
Use a Branch level sequence for Inv No. and CC No.	Yes: Sets a different numbering sequence for each branch. No: Uses the same numbering sequence throughout.	No

General Settings

Setting	Description	Default
Customer Credit Notes > Inventory: Auto Receive Inventory when Customer Credit Note is changed to a Complete Status	Yes: A Materials Movement (Return) is created automatically. No: You must create a Materials Movement (Return) yourself when the materials are returned.	No

List View

The list opens in the view set by your Default Transactions View setting. Menu > Views switches between the Transactions view, which displays one row for every Credit Note, and the Items view, which displays one row for every line item on the Credit Note.

Buttons Explained

Button	Description
Reset	Resets the data filters.
Arrow on Reset	Select a filter option: Today All Pending All Active All Pending & Active
View	Lists the Credit Notes that match the filters.
New	Creates a Credit Note.
Arrow on New	Displays the New Credit Note from Invoice option.
Output	Prints, previews or emails the selected Credit Notes (see Output).
Menu	A submenu with these options: Views: Transactions or Items Settings: Edit Categories Export: Email Excel, Export Grid Layout: Save Grid, Save Grid (All Users), Restore Grid, Restore Default Grid, Restore Default Grid (All Users)

Filters Explained

Filter	Description
No.	Select the kind of number, then enter it: CC: the Credit Note number. CI: the Customer Invoice it was copied from. The other filters are ignored while a number is entered.
Date	The Credit Note date range: No Date User Date (a range you choose) Today Yesterday This week Last week This month Last month This year Last year Fin year The arrows move the range back or forward.
Status	Check the status groups to include: Pending Active Complete Cancelled If none of the status groups are checked, all the entries appear.
Customer	Shows only the Credit Notes for the selected customer.
Branch	Shows only the Credit Notes for the selected branch.
Category	Shows only the Credit Notes in the selected category.

Fields Explained

Info

Fields marked in green (✎) can be edited.

Column	Description
CN No.	The Credit Note number.
Date	The Credit Note date.
User	The user who created the Credit Note.
Customer	The customer.
Reference	Your reference.
Status	The Credit Note's status, in the colour of its status group.
CI No.	The number of the Customer Invoice it was copied from.
WF No.	The linked Workflow number (see Workspace).
Branch	The branch.
ID	The system-generated number of the Credit Note.
Rep	The sales rep.
Contact	The customer's contact person.
Total (CUR)	The transaction total in its currency.
Total (Exc)	The transaction's VAT exclusive total.
VAT	The amount of VAT on the transaction.
Total (Inc)	The transaction's VAT inclusive total.
Ledger ID	The system-generated number allocated to the ledger entry.
MM No.	The numbers of the linked Materials Movements (Return).
Acc No.	The customer's account number.
From	The type and number of the transaction it was copied from (for example, CI 123).
Flow	The system-generated number allocated to the transaction flow (all the transactions copied from each other).
SM No.	The linked Service Manager ticket number.
Category	The Credit Note's category.
Cost to NCR	The Non-Conformance Report the credit is charged to.
CGST Amt	The CGST amount. Only for companies that use GST (India) (see GST (India)).
SGST Amt	The SGST amount. Only for companies that use GST (India) (see GST (India)).
IGST Amt	The IGST amount. Only for companies that use GST (India) (see GST (India)).
Updated	The date the Credit Note was last updated.
Updated by	The user who last updated the Credit Note.
Status Note	The note entered on the status bar.
Menu (...)	A submenu that can also be accessed by right-clicking an entry, with these options: Open Workflow Open Transaction in Ledger View Customer Summary View linked Transactions View SM Responses (see Service Manager) Copy to Materials Movement (Return) Edit Delete

Items View: Fields Explained

The Items view displays one row for every line item on the Credit Note.

Column	Description
ID	The system-generated number for the item.
CC ID	The system-generated number of the Credit Note.
CC No.	The Credit Note number.
Status	The Credit Note's status.
Date	The Credit Note date.
Customer	The customer.
Reference	Your reference.
CC Total (CUR)	The Credit Note total in its currency.
CC CGST	The Credit Note's CGST amount. Only for companies that use GST (India) (see GST (India)).
CC SGST	The Credit Note's SGST amount. Only for companies that use GST (India) (see GST (India)).
CC IGST	The Credit Note's IGST amount. Only for companies that use GST (India) (see GST (India)).
CC Total (Exc)	The Credit Note's VAT exclusive total.
CC VAT	The amount of VAT on the Credit Note.
CC Total (Inc)	The Credit Note's VAT inclusive total.
Contact	The customer's contact person.
Rep	The sales rep.
Branch	The branch.
User Created	The user who created the Credit Note.
CUR	The abbreviation of the currency used on the Credit Note.
SO No.	The Sales Order the line came from.
Inv No.	The Customer Invoice the line came from.
Trans ID	The system-generated number allocated to the ledger transaction.
Ledger ID	The system-generated number allocated to the ledger entry.
Date Created	The date the Credit Note's ledger entry was created.
Date Updated	The date the Credit Note's ledger entry was last updated.
From	The type and number of the transaction it was copied from (for example, CI 123).
Category	The Credit Note's category.
Item	The line number.
Inv Item ID	The system-generated number of the Customer Invoice line it was copied from.
Description	The description of the item credited.
Code	The code of the item credited.
Account	The ledger account the line is posted to.
VAT Type	The VAT Type applicable to the line item.
Enter	Whether prices are entered excluding (Exc) or including (Inc) VAT.
VAT%	The percentage VAT applicable to the line item.
Qty	The quantity credited.
Adj%	The percentage adjustment on the price.
Item Total (cur)	The item's total in its currency.
Item Total (Exc)	The item's VAT exclusive total.
Item VAT	The total amount of VAT on the item.
Item CGST	The item's CGST amount. Only for companies that use GST (India) (see GST (India)).
Item SGST	The item's SGST amount. Only for companies that use GST (India) (see GST (India)).
Item IGST	The item's IGST amount. Only for companies that use GST (India) (see GST (India)).
Item Total (Inc)	The item's VAT inclusive total.
/Unit	The price per unit.
Subcategory	The material's subcategory.
Category (Mat)	The material's category.
Menu (...)	The same options as on the Transactions view.

Edit View

Buttons Explained

Button	Description
Arrows	Move to the previous or next transaction on the list.
New	Saves the open Credit Note and creates a new one.
Save	Saves your changes.
Output	Prints, previews or emails the Credit Note (see Output).
Status	Changes the Credit Note's status. A Complete status updates the Customer Age Analysis, and can create the Materials Movement (Return) (see Returned Stock).
Links	Lists the transactions linked to the Credit Note. Select one to open it.
Actions	A submenu with these options: Copy to Materials Movement (Return) (needs editing access to Materials Movements) Update the From Transaction: updates the Credit Note from its source, or a different one, and warns that this breaks the links to downstream transactions
Menu	A submenu with these options: Open Workflow Open Transaction in Ledger View Audits View Customer Summary View linked Transactions View SM Responses Delete Credit Note Layout: Save Grid, Save Grid (All Users), Restore Grid, Restore Default Grid, Restore Default Grid (All Users)

Header Explained

Info

Fields marked in green (✎) can be edited.

Field	Description
CN No.	The Credit Note number.
Date	The Credit Note date.
Customer	The customer.
Contact	The customer's contact person.
Rep	The sales rep.
Reference	Your reference.
Note	A note, below the reference.
Category	The Credit Note's category.
Cost to NCR	Select a Non-Conformance Report to charge the credit to (see Non-Conformance Reporting).
Bill	The billing address. It is filled in from the customer's default billing address.
Branch	The Credit Note's branch.
Outstanding	The amount still outstanding.
Currency	The Credit Note's currency.
Rate	The exchange rate.
Ledger ID	The ledger transaction.
From	The type and number of the transaction it was copied from (for example, CI 123).
SM No.	The Service Manager ticket.
Updated	Who last changed the Credit Note, and when.

Item Buttons Explained

Button	Description
Invoice	Adds lines from the customer's invoices.
Material	Adds materials.
Custom	Adds a custom line.

You must first select a customer before you can add lines.

Item Fields Explained

Info

Fields marked in green (✎) can be edited.

Field	Description
Description	The description of the item credited.
Qty	The quantity credited.
Unit Price	The price.
Total (Exc)	The item's VAT exclusive total in the local currency.
Unit	The unit.
Received	The date the returned item was received.
ID	The system-generated number for the item.
VAT Type	The VAT Type selected for the line item.
Enter	Whether prices are entered excluding (Exc) or including (Inc) VAT.
VAT	The VAT amount on the line item.
Total (Inc)	The item's VAT inclusive total in the local currency.
Subtotal	The item's subtotal (before adjustments).
Fixed Cost	A fixed cost.
Unit Cost	The cost per unit.
Fixed Price	A fixed amount added to the line.
/Unit	The price per unit.
Adj %	The percentage adjustment on the price.
Adjustment	The adjustment as an amount.
VAT %	The VAT percentage on the line item.
Item	The line number.
Account	The ledger account that is debited (see Default Set Customer Credit Note Accounts).
Total Cur	The item's total in its currency.
Code	The code of the item credited.
From	The type and number of the transaction the line was copied from (for example, CI 123).
Location	The stock location the returned item goes back to.
CGST %	The CGST percentage. Only for companies that use GST (India) (see GST (India)).
SGST %	The SGST percentage. Only for companies that use GST (India) (see GST (India)).
IGST %	The IGST percentage. Only for companies that use GST (India) (see GST (India)).
CGST Amt	The CGST amount. Only for companies that use GST (India) (see GST (India)).
SGST Amt	The SGST amount. Only for companies that use GST (India) (see GST (India)).
IGST Amt	The IGST amount. Only for companies that use GST (India) (see GST (India)).
Type	The kind of line: CTM, SER, MUP, EPR, EOS, EGR or EPD (see Item Types).
/Qty	The quantity the price is for.
Menu (...)	A submenu with these options: Delete Item Convert to Fixed Unit Price (MUP) View/Edit Note Open linked Material Item View Material Summary Move Up Move Down

Statuses

Customer Credit Notes use the statuses set up for the module. See Statuses for the status groups and default statuses.

When a Credit Note is set to a Complete status, the credit reflects on the Customer Age Analysis, and the returned stock can be received automatically (see Returned Stock).

How Credit Notes Work

Returned Stock

Returned stock goes back into inventory through a Materials Movement (Return).
The Copy Rule calls it Materials Movement (Receive): receive and return do the same thing and add the goods back to inventory.
Receive is normally used for goods from suppliers, and return for goods coming back from customers.
If the general setting Auto Receive Inventory when Customer Credit Note is changed to a Complete Status is Yes, the Materials Movement (Return) is created automatically when the Credit Note is completed.
Otherwise, copy the Credit Note to a Materials Movement (Return) when the materials come back.

E-Invoicing (UAE)

Customer Credit Notes can be exported to a .csv file in the UAE e-invoicing format, together with the Customer Invoices in the same date range: Customer Invoices list view > Menu (button) > Export UAE eInvoices (.csv). See How to Export E-Invoices (UAE).

The Bill To address is the address selected in the Bill field of the Credit Note. It is filled in from the customer's default billing address (Customer > Street Addresses (tab)).
The Ship To address is the customer's default delivery address.
The company's details come from My Organisation > e-Invoicing (tab), and the customer's from the customer's e-Invoicing (tab).
Cancelled transactions are not exported.

Customer Credit Notes

Overview#

Settings#

User Settings#

Accounting Settings#

General Settings#

List View#

Buttons Explained#

Filters Explained#

Fields Explained#

Items View: Fields Explained

Edit View#

Buttons Explained#

Header Explained#

Item Buttons Explained#

Item Fields Explained#

Statuses#

How Credit Notes Work#

Returned Stock#

E-Invoicing (UAE)#

Overview

Settings

User Settings

Accounting Settings

General Settings

List View

Buttons Explained

Filters Explained

Fields Explained

Edit View

Buttons Explained

Header Explained

Item Buttons Explained

Item Fields Explained

Statuses

How Credit Notes Work

Returned Stock

E-Invoicing (UAE)