About credit adjustment processing

You can enter a credit adjustment by using the Process payments (AP50300S) window.
The summary of a credit adjustment includes information about the supplier, the supplier location, and the currency used for the transaction.

A credit adjustment should contain at least one line. The adjustment can have a summary line or any number of detail lines.

We recommend that when you enter a document, you include all the details available in the original supplier document.

To facilitate auditing, you can attach to each adjustment an electronic version or a scanned image of the original supplier document.
Also, you can attach a related document to each line of the document.

When it is first saved, a credit adjustment is automatically assigned a unique identifier that lets you track the credit adjustment through the system.
The system generates this identifier according to the number series assigned to credit adjustments in the Supplier ledger preferences (AP101000) window.

A credit adjustment has no reference to the invoice that it is related to.
You may include a reference to the original document (invoice or prepayment) in the description of the adjustment and a reference to the related supplier document in the Supplier reference field.
If the Raise error on invoice number duplicates option is not selected in the Supplier ledger preferences (AP101000) window, then you can use the reference number of the original supplier document on both the invoice and the related credit adjustment; this will make it easier to find both the invoice and the adjustment.

Each adjustment has one of the following statuses, which tells you its stage in processing:

• On hold:
  Generally, this status is used for an adjustment that is a draft.
  This is the default status for new documents if the Hold documents on entry check box is selected in the Supplier ledger preferences (AP101000) window.
  You can edit a credit adjustment with the On hold status.
• Balanced:
  After editing is completed, you can save a Balanced adjustment if it remains balanced.
  If the Validate document totals on entry option is selected in the Supplier ledger preferences (AP101000) window, you can take an adjustment off hold only if you correctly type the document control total.
• Open:
  
  The document has been released (and approved, if required).
• Closed:
  The document has been paid.

You can release credit adjustments in bulk by using the Release supplier documents (AP501000) window or individually by using the Process payments (AP50300S) window.

When a one-line adjustment is released, a batch of the following transactions is generated.

A cash discount can be applied to a credit adjustment in accordance with payment terms.
As the credit adjustment is released and posted, the system adjusts the supplier ledger account and the specified expense account.

A batch created upon release of the adjustment is numbered in accordance with the number series assigned to the batches originating in Customer ledger.

If approval of invoices and adjustments is not required in your system, all credit adjustments and invoices, upon release, appear with the Open status in the Process payments (AP50300S) window and you can pay them. The system assigns a default pay date, which is determined based on the due date minus the number of payment lead days.

If approval of documents is required before the documents may be paid, then upon release, the credit adjustments appear in the Approve invoices (Approval) (AP50200S) window, from which you can approve them. Approved documents appear in the Process payments (AP50300S) window and you can pay them.

Once released, a credit adjustment cannot be edited or deleted; you only can reverse it.
If you reverse the adjustment, the system generates a purchase credit note with the same details.
Before you save the purchase credit note, you should type another Supplier reference value if the Raise an error on duplicate supplier reference number option is selected in the Supplier ledger preferences (AP101000) window.

You can pay adjustments individually by using the Customer payments (AR302000) window.
Also, adjustments can be paid in bulk along with the Process payments (AP50300S) window.