Credit Notes (Vendor)

A Vendor Credit Note is a document sent by the supplier to your company, notifying you that a certain amount has been credited to you due to an error in the original invoice, returns, or other reasons. These can reduce an accounts payable invoice or record a credit balance for future purchases.

Record a Vendor Credit Note

To record a vendor credit note:

1. In the main menu, go to Purchases, and then click on Credit Notes.
2. In the Credit Notes list, click the (+) button.
3. In the window that appears, choose the Expense/Purchase from which the Credit Note is generated.
4. Select the Credit Note Type, whether you want to exclude taxes, and the status (Draft or Open). All other information will be filled in by default.
5. In the content section, you will see a list of items from the purchase invoice, these will be the ones that are being returned or credited. If you are not going to void the invoice entirely, you can modify the quantity to define the quantity of items to be returned or delete the entire line and only leave the items to be returned.
6. Once ready, click Save to save the document.

2. Modify a Vendor Credit Note

There may be occasions when it is necessary to modify a vendor credit note. This could be due to an error or mistake. To edit a credit note, follow these steps

1. In the main menu, go to Purchases, then click on Credit Notes.
2. In the list of Credit Notes, locate the credit note you want to modify.
3. Click on the action menu (three horizontal dots).
4. Select Edit.
5. Make the necessary adjustments.
6. Click Save to save the changes.

3. Deleting a Credit Note

There may be occasions when it is necessary to void a vendor credit note. This could be due to an error or mistake. To delete a credit note, follow these steps:

1. In the main menu, go to Purchases and then click on Credit Notes.
2. In the list of Credit Notes, look for the credit note you want to delete or void in the list.
3. Click on the actions menu (three horizontal dots).
4. If the credit note is in Draft status, you will have the option to Delete.
5. If the credit note is in Open status, it cannot be deleted as it has an accounting record. In this case, you will have the option to Void Document.
6. You will be asked to confirm the action.

4. Applying Vendor Credit to a Purchase Invoice

To apply a credit note to a purchase invoice, follow these steps:

1. In the main menu, go to Purchases and then click on Expenses / Purchases.
2. In the list of Expenses and Purchases, look for the purchase invoice to which you want to apply the credit note.
3. Click on the actions menu (three horizontal dots), and then click on Apply Advance.
4. In the Advances and Deposits section (tab), in the list, choose the credit note you want to apply by clicking the checkbox and enter the amount to apply.
5. You can apply more credit notes to this purchase invoice by repeating the previous step.
6. Once ready, click Save.

5. Receiving a Refund from a Credit Note

To receive money from a credit note, follow these steps:

1. In the main menu, go to Banks and then click on Income Receipt.
2. In the list of Income Receipts, click on the (+) button and then on New Receipt.
3. Choose the bank account, payer, payment method, date, and concept.
4. In the Accounts Receivable (AR) section (tab), click on the + Receivables (AR) button.
5. In the window that appears, in the list, choose the credit note you want to refund by clicking its switch.
6. Click the X above the window to close the window and return to the payment.
7. Back on the payment screen, click Save.

6. Sending a Credit Note by Email

To send a credit note by email, follow these steps:

1. In the main menu, go to Purchases and then click on Credit Notes.
2. In the list of Credit Notes, look for the credit note you want to send by email.
3. Click on the actions menu (three horizontal dots) and then click on Send by Email.
4. Fill in the fields for To (email), Subject, and Message. This information will come by default, but you can make necessary adjustments.
5. If you need to include a BCC or CC, click on the link next to the To field.
6. Click Send to send the email.

7. List of Credit Notes and Options

The vendor credit note module provides a list of all recorded vendor credit notes and a set of options in the action menu (three horizontal dots) for each credit note. These options allow you to manage and track each transaction easily. The options in this menu are:

1. Preview
   This option allows you to preview the credit note as it would appear once printed.
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2. Edit
   If you need to edit a credit note, this option allows you to make changes to it. Note that you can only edit a credit note while it's in the draft state.
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3. History
   This option allows you to view the transactions associated with this credit note.
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4. Send by Email
   This option enables you to send the credit note directly to a third party via email.
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5. Attach File
   You can use this option to add files related to the credit note, such as attachments and others.
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6. Audit
   The audit option displays the changes made to the document, allowing for detailed tracking of modifications.
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7. Delete
   If you need to delete a credit note for any reason, you can do so using this option. Keep in mind that you can only delete credit notes in the draft state.
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8. Void Document
   When a credit note is in the open or closed state and needs to be voided, you can use this option. A voided credit note cannot be deleted.
   

Tips & Best Practices

1. Check Details
   Make sure to check and review all details before recording a credit note. This includes the vendor, items, amounts, credit note type, and more.
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2. Document State Management
   Keep credit notes in the "Draft" state until you are certain about all the details. Once you change the state to "Open," the credit note will affect the accounting records and cannot be modified.
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3. Strategic Use of Credit Notes
   Credit notes can be useful for handling returns or errors in vendor invoices. They can also be used as a method to maintain a credit balance for future purchases.
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4. Tracking Credit Notes
   Maintain proper records and track all credit notes. This will help avoid confusion and facilitate accurate account maintenance.
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5. Communication with Vendors
   Ensure effective communication with vendors when recording a credit note. This will help maintain a good relationship with them and avoid misunderstandings.
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6. Document Attachments
   Use the option to upload files to keep a digital record of documents related to the credit note. This can be especially useful for tracking and as evidence in case of disputes.
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7. Applying Credit Notes
   Apply credit notes to the appropriate purchase invoices and verify the details before doing so. Remember that you can apply multiple credit notes to a purchase invoice as long as you do not exceed the total outstanding amount.
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8. Sending Credit Notes by Email
   Use the option to send by email to share credit notes with stakeholders. This can be useful for keeping all parties informed and for maintaining a communication record.
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9. Voiding Credit Notes
   In case of an error or mistake, void the credit notes instead of deleting them. Voiding maintains a record of the document, which is important for transparency and auditing.
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10. Refunding Credit Notes
    If the vendor decides to refund a credit note, make sure to accurately record the income receipt in the system.

Common Issues

Here are some common issues with the sales modules and their solutions.

1. Unable to Modify or Delete a Credit Note
   Once a credit note is marked as Open or Closed, it cannot be modified or deleted because it affects accounting and other administrative processes. Make sure to carefully review the information before changing its status. If you need to correct a credit note in an Open or Closed state, you can void it and then generate a new one with the correct information.
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2. Unable to Apply a Credit Note to a Purchase Invoice
   This can happen if the total of the credit notes exceeds the outstanding amount of the invoice. In this case, you can apply the credit note partially by entering an amount less than the total credit note amount in the "Amount to Apply" field.
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3. Incorrect Details on the Credit Note
   If the credit note is still in Draft status, you can edit it directly. If it is already Open or Closed, you will need to void it and create a new credit note with the correct details.
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4. The Credit Note Does Not Appear in the Income Receipt Module
   This can happen if the credit note is still in Draft status, has been voided, or has already been applied to a purchase invoice. Check the status of the credit note and ensure it is in Open or Closed status before attempting to view it in the Income Receipt module.
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5. Unable to Delete a Credit Note
   You can only delete a credit note that is in Draft status. If the credit note is already Open or Closed, you will need to void it instead of deleting it.
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6. Issues with Sending the Credit Note via Email
   There may be issues with the email server or the recipient's email address could have a spam filter blocking the email. Verify your internet connection and the recipient's email address. You can also ask the recipient to check their spam folder.
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7. Fields Not Displayed on the Credit Note
   You must enable these fields in Settings > Documents > Document Settings. In the list of documents, go to Purchases, select the Credit Notes line, and click the settings icon. In the Display Columns options, activate the columns you want to be visible in the document view and print view. Then click Save. Remember to exit and re-enter the credit note document to see the changes.

Please note that these are common issues and general solutions. If you encounter a different problem or the provided solutions do not resolve your issue, do not hesitate to contact technical support for further assistance.