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Record a credit note

A credit note records a reduction against what you owe a supplier, and sets how that reduction affects the value of your stock.

Three ways in​

  • From Purchasing → Invoices, select New credit note from the split button — the same one that also offers New invoice and New landed cost invoice.
  • From a posted invoice, select Raise credit note.
  • From within the builder, switch the document type from invoice to credit note.

Steps​

  1. Pick the Supplier and enter the credit note's lines. As on a supplier invoice, add lines with Add from GRN to pick from what's been received, or Add product to add one manually.
  2. Choose a reason: overcharge, shortfall, damage in transit, damage in warehouse, defective, price adjustment, "return to vendor", or other — the same eight reasons a supplier return offers.
  3. The reason sets a default valuation treatment, shown as a badge:
    • Revalue WAC — reverses the value the goods receipt added to stock. Default for overcharge, price adjustment, damage in transit, damage in warehouse, and defective.
    • Reduce GRNI — clears what you owed without changing stock value. Default for shortfall and "return to vendor".
    • Expense — treats the credit as a straight cost, with no effect on stock value. Default for other.
  4. You can override the treatment. The badge switches to Overridden, with a Reset to default control to go back to what the reason implies.
  5. If the treatment is Expense, every line needs an account code, or posting is refused.
  6. Save and post it as you would a supplier invoice: the primary button is whichever of Save & Match, Save & Post or Save, Match & Post applies to what you've entered, with Save draft also available from its dropdown.

Cancelling​

Cancel is only available on a draft credit note — not once it's posted. That's the opposite of an invoice, where Cancel is only available while it's held; see resolve a held invoice.