To create a credit note, go to the Financial Accounting menu and select Sales Invoices.
Once on the sales invoice screen, you will see a Credit Note button in the top right. Click this button.
Once on the credit note screen, you will need to click on the +Create button in the top right.
Completing the Credit Note Details
Now you need to fill in the details of the credit note.
Customer Name - this is the customer account you want to raise the credit against
VAT Type - select RC VAT if you want this credit note to be applied against invoices with Reverse Charge VAT Applied
Credit Note Type - Choose whether you want the credit note to be assignment-based or non-assignment-based (this will impact the allocation options)
Credit Note Date- Choose the effective date of the credit note
Credit Note Description - This is a free text box to write a description of the note
Client Ref - this is to capture a reference supplied by your customer/ client, if applicable
Once you have filled in the base details, you need to add in your line items. To do this, complete the below section:
Adding Line items to your credit note
Each line item requires 9 pieces of information, some of which is automatically calculated for you. There is an example in the below image and a table to help understand each field.
Item name | Name of the line item as will be displayed on the credit note |
Quantity (number) | The number of units to be credited is required |
Quantity (Type) | Here, you are required to choose the unit type. N.B., if you are crediting an invoice that has not yet been run through payroll, you should match the rate type to that of the original invoice to ensure the calculation will be correct. |
Unit Price | The price per unit to be credited |
Net Amount | This will be automatically calculated by multiplying the Quantity by the Unit Price |
VAT | The VAT percentage to be applied to this line item should be entered here |
VAT Amount | This will be automatically calculated by multiplying the Net Amount by the VAT |
Total | This will be automatically calculated by adding together the Net Amount and the VAT Amount |
Once you have completed all the details, click on the Add button.
If you need to add more line items, you can do this by following the same process you have just followed.
If you need to come back to the credit note and finish it later, click on save. If you're finished and ready to move on to Approving and Allocating the Credit note, click on Submit.
Approving a credit note
Once you have submitted a credit note, it needs to be approved. Please note that you will need to have the correct permissions to approve credit notes (found under the Settings>Workflow>credit notes section).
To approve a credit note, find it in the credit note list and click on the eye icon.
You will then be able to see the full details of the credit note and approve or reject it.
Once approved, the credit note is ready for allocating against invoices.
Adding Credit Note from the Sales Invoice Screen
You can generate credit notes directly from the sales invoice screen. Simply click on the view icon on the sales invoice to access this feature.
In the view slider, you can see the "Credit Note" button
By clicking on the "Credit Note" icon, all the details from the sales invoice will be automatically copied, you only need to enter the credit note date. If you want, you can make updates to the details as needed.
You can navigate to the Credit Note screen to review all the details.
Clicking on the "view sales invoice" icon typically allows you to access the detailed information of a particular invoice.
