|Top Previous Next|
Give Credit or Refund to Customers.
Watch the video: Credit Notes
When a customer returns merchandise, you must enter the return as a credit note.
Three methods to make a credit note.
1. Go to Invoice > Invoice Lookup. Search for the invoice you wish to credit and right click on the invoice for additional functions. Select New credit note for this invoice.
With this method pricing can't changed nor can the quantities be more than that which is on the invoice, nor can items be added which are not on the invoice. This is the correct method to use in order to prevent mistakes.
2. Go to Invoice > New Credit Note. If there is no associated invoice use this option.
This method allows you to add any item(s) and change pricing etc.
3. Go to Invoice > New Credit Note and select the I (Invoice Button). This action will retrieve the invoice data directly into the New Credit Note. See image below, left bottom of form.
This method allows you to change the pricing and quantities, however no new item(s) can be added.
The Credit Note Form will now open:
Select the items you want to credit by selecting the select checkbox.
Please note that you can't credit to the same item twice. The Payment F8 and Process F9 buttons will be greyed out preventing this credit note from being processed.
If you are giving him cash back, use the Cash field. Your Cash Up amount will be reduced.
If you are swiping his credit card, use the credit card field - your Cash Up amount will be reduced.
If you are paying him with a cheque or EFT, use the cheque field - your cash up won't be effected.
Select the On Account field if it must be deducted from his account.
Corrections - Scenario 1
You incorrectly fill the amount in under Cash. To reverse this credit note: (Journal entries will be: Debit Sales and Credit Cash Control).
Create an invoice (Cash or On Account), remember to fill in the amount under the cash field, and then redo the credit note. This invoice will contra the incorrect credit note.
Do a Customer Journal. The General Ledger Account is Cash Control and the amount must go in the credit column.
Delete the credit note and redo it. Go to Ledger > Corrections
Corrections - Scenario 2
You incorrectly fill the amount in under Cheque or Direct Bank (Journal Entries will be: Debit Sales and Credit Bank, no effect on your Cash Up )
To reverse this credit note:
Create an invoice, remember to fill in the amount under the cheque field, and then redo the credit note.
Do a Customer Journal. The General Ledger Account is Bank and the amount must go in the credit column.
Trade In: If the item is a trade in item, for example an empty coke bottle then the journal entries will be the opposite from a normal item. Stock and Input VAT will be credited and Customer Control debited
A Credit Note has no effect on the average cost price of an item.
To retrieve archived credit notes use the Credit Note Lookup. Search for the credit note and double click on the row to open the credit note.