A Credit Note (CN) is a commercial document that a supplier produces to notify the customer about a credit applied to the customer’s account and Invoice.
Typically, a Credit Note is created in the following cases:
- The customer returned goods or rejected services.
- The goods were damaged in some way, usually during transit.
- There was a mistake regarding the price in the original Invoice.
- The customer overpaid the original Invoice.
TABLE OF CONTENTS
- How to Create a Credit Note
- How the Credit Note Affects Related Documents and Budgets
- How to Pay an Invoice with Supplier’s Credits
- How to Cancel a Credit Note
- Supplier Credit Note #
- How to Create Credit Note Reports
- Related Credit Note in the Purchase Order Document
- Downloading Invoice Documents with the Credit Note Information
How to Create a Credit Note
1. In the Invoice document, press the Create Credit Note button.
2. Select the items you wish to add to the CN by ticking them.
3. Fill out the necessary details for the CN.
How the Credit Note Affects Related Documents and Budgets
- Credits increase the available budget amount from an initial Invoice.
- Payment will be added to the initial Invoice if the unpaid amount is equal to or exceeds the credit.
- If your initial Invoice is fully paid, the credits will be added to the supplier’s credit balance, and you will be able to pay another Invoice using the credit.
- If your initial Invoice is partially paid, the credits will be split between the initial Invoice and the supplier’s credit balance.
How to Pay an Invoice with Supplier’s Credits
If you have a credit balance for a specific supplier, you will be able to pay the Invoice with it.
How to Cancel a Credit Note
You can cancel a Credit Note if there are no payments to be made with credit. Even if there are some credit payments, you can cancel them and cancel the Credit Note.
Supplier Credit Note #
- You can add a Supplier Credit Note # while creating a Credit Note.
- The Supplier Credit Note # is now displayed in document lists and on document show pages.
- You can edit the Supplier Credit Note # when the Credit Note has the status Draft.
- You can search and filter documents by Supplier Credit Note #.
Please note: Supplier Credit Note # are checked for duplicates. Therefore, you cannot create Credit Notes with identical Supplier Credit Note numbers. To change this, you can turn off this feature here.
How to Create Credit Note Reports
Information on Credit Notes is available in both custom and preset Precoro reports.
You can use the following preset Precoro reports:
1. Credit Note export by Items
2. PO Report by Items
3. Invoice Report by Items
Information on Credit Notes in custom reports is based on the following documents:
1. Purchase Order
Related Credit Note in the Purchase Order Document
Displaying the CN in Purchase Order
You can see the Credit Note display in the item’s row, where the quantity in the calculation of the received and invoiced items is considered in the PO.
There is a direct link to the related CN in PO.
In the item’s row, there are additional columns: Quantity in Credit Note (the columns are available in PO and Receipt documents only when you have a related CN).
Completing the Purchase Order with related CN
You can complete the Purchase Order documents automatically by adding Credit Notes to them. In that case, the Purchase Order will get Complete, Received, and Paid statuses.
Downloading Invoice Documents with the Credit Note Information
When downloading the Invoice document in PDF or XLSX formats, you will see the following parameters: Credits, Paid, and To Pay.
The Credits parameter will only be shown if the document has a related Credit Note.