The procedure for entering a credit note from a supplier is essentially identical to that for a credit note to a customer.

The easiest way to create a credit note is through the source document for the receipt or issue of the goods or services. A credit note is usually the result of a customer's complaint about the quality or quantity of goods supplied.

In this chapter, we'll be creating a credit note at a warehouse where the valuation of stock by average price has been selected. We'll create a credit note in the same document type as the receipt.

For credit notes with the LIFO and FIFO valuation methods: for the FIFO method see Credit Notes from Suppliers - Reversing a Receipt for the LIFO method see Credit Notes from Suppliers - Reversing a Receipt

Using the suggested procedure, the program will create document lines identical to the lines in the original document, only here the QUANTITY is NEGATIVE. This way, you will:

1. reduce stock by the entire received quantity

2. reduce the value of stock by the reversed value using the valuation price

3. reverse the value of the payables

Example:

A supplier has supplied 10 pieces of ITEM01 at the price (minus VAT) of 150 EUR, and has issued an invoice.

1. Invoice for Received Goods

2. Credit Note

On the basis of the record of the complaint, the supplier has approved your complaint and presented you with a credit note.

The easiest way to create a credit note is by opening a new credit note document header and clicking the Add button in the lines of the document. Select the Change Sign (Reverse Document) option.

Once you select the Change Sign option, the program add the movement from the line of the supplier's invoice. This will transfer information about: discount included direct costs included customs tariff number and tax % valuation price

In the panel for selecting lines (see Lines to Transfer), you can also change the quantity to be transferred to the credit note as needed.

This way, the program creates document lines identical to those in the original document, only here the QUANTITY is NEGATIVE. This way, you'll:

• reduce your stock of the entire received quantity
• reduce the value of your stock by the reversed value of the valuation price
• reverse the value of the payables
• record the VAT date from the invoice for which you are creating the credit note in the  Links | VAT tab. This makes it possible to create a print-out of an attachment to the specific VAT form (if you've also previously selected this type of attachment).

 3. Receiving

If you're reversing a document, the previous step was the last one. But if you and the supplier have agreed to reducing the purchase price (due to hidden flaws, for example), enter a new line in the credit note with a POSITIVE quantity and a new sale price. This way you'll:

• once again receive the goods
• increase the value of payables to supplier by the new price
• once again increase the stock by the newly calculated valuation price. In this example, the supplier has lowered the price by 10%

Related Topics:

• Warehouse - Valuation by Average Price
• Receiving
• Issue
• Refresh Stock
• Revaluation
• Credit Note to Customer