Create Sales Credit Note

Navigate to the Sales tab and click on the New Credit Note button

Proceed to enter the credit note details as follows:

 

Sales Credit Note

  • Transaction ID: Automatically generated sequential number based on the Transaction Numbering settings for the organisation. It represents the unique sales credit note number which is presented to the customer.
  • Customer: Select the customer you are issuing the credit note to. If the customer has not already been set up, click on the plus sign (+) to create a new customer.
  • Reference: Enter relevant information such as customer purchase orders or other details you would like to appear on the credit note output.
  • Credit Note Date: The date you issue the credit note. Note that if you specify a date prior to the Conversion Date in your organisation settings, the credit note is treated as part of your Conversion Balances
  • Due Date: The date that credit note falls due. This defaults to the current date but can be changed.
  • Add New Line Item: If more than one line item is to be entered, click on this button to initiate the entry of the next line item.
  • Show VAT Amount: Selecting this checkbox displays the VAT Amount field for each line item. The VAT amount can be changed if required. 
  • Amounts include VAT: By default, the Unit Price is expected to be entered net of VAT. Selecting this checkbox results in all VAT calculations assuming the Unit Price includes VAT. This impacts the overall VAT charged on the credit note and therefore, the Total of the credit note. 
  • Quantity: The quantity of the goods or services being credited. Must be greater than 0.
  • Description: Enter a description of the goods or services being credited. This text will appear on the credit note output.
  • Account: Enter the account against which the reduction of income should be recorded. Use the drop down arrow to search available accounts or click in the field and enter free text to find matching values. If you cannot find an appropriate account, check your settings for the Chart of Accounts and create a new account if required.
  • VAT Code: Select the appropriate VAT Code which should be applied to the line item (default VAT codes can be set in Chart of Accounts). The codes chosen here impact your VAT Reporting. If you are unfamiliar with VAT, it is advisable to consult your accountant or the HMRC for advice. 
  • VAT: Only visible if Show VAT Amount checkbox selected. The VAT amount can be changed if required.
  • Unit Price: Enter the unit price of the goods or services supplied to the customer.
  • Total: Line item total – Unit Price multiplied by Quantity.
  • Delete Line (X): This button allows you to delete an unwanted line item if there are no validation restrictions (such as the transaction being refunded, allocated or included in a VAT Report).
  • Memo: Enter information applicable to the entire credit note. The text is available for displaying on the credit note output.
  • Include in PDF: Selecting this checkbox ensures that text in the Memo field appears on the PDF printed version of the credit note.

 

Click the Save button to complete the creation of the credit note or choose the Save Draft option which saves the credit note but does not update your financial results. Draft credit notes can be edited at a later stage and saved again as draft or actual credit notes.