Create a credit note

To credit a customer if, for example, the customer received damaged goods or the invoice mistakenly overcharged the customer, you create a credit note by using the Sales invoices (AR301000) window. To apply a credit note that was previously released (as described in Release an invoice) to customer ledger documents or to create a customer refund, see: Apply a credit note to open documents.

1. Go to the Sales invoices (AR301000) window.
2. In the window toolbar, click to initiate a database entry for a new document.
3. In the Type field of the top part, select Credit note.
4. In the Date field, enter the credit note date.

   The Post period field is filled in automatically based on the selected document date.

5. Select the customer associated with the credit note.
6. In the Location field, check the customer location, and change it if necessary.
7. Optional: In the Customer order field, enter the reference number assigned by the customer to the customer document.
8. Make sure the document currency is the one you need, and change it if necessary.

   The currency may be overridden only if the Allow currency override check box is selected for the customer in the Customers (AR303000) window.

9. Optional: In the Description field, add a brief description of the credit note or the reference number of the original invoice.
10. On the Document details tab, enter the details of the credit note, performing the following steps for each line (transaction):
    A credit note must include at least one line.
    1. In the table toolbar, click to append a row to the table.
    2. Optional: In the Item ID column, enter the ID of the item sold or the service provided to the customer.
    3. Optional: In the Transaction descr. column, enter a description of the transaction.
    4. Optional: Enter the quantity of the item sold.
    5. Optional: In the UoM column, enter the unit of measure for the item.
    6. Optional: In the Unit price column, enter the price per unit.
    7. In the Manual amount column, enter the amount for the line. If you have specified a stock item, the system calculates the manual amount by multiplying its unit price and the quantity sold, but you can override this calculated price.
    8. Check the Account column and change it if needed.
    9. Check the Subaccount column if applicable, which the system fills in by default based on the rule in the Combine sales sub. from field of the Customer ledger preferences (AR101000) window; you can manually change the subaccount if necessary.
    10. Check the salesperson associated with the customer. You can change the selected salesperson if needed.
    11. Optional: In the Deferral code column, select a deferral code if the expenses related to the item or service must be recognised in future periods.
11. To save the document with the On hold status, make sure the Hold check box is selected.
12. To save the document with the Balanced status, do one of the steps below, and make sure the Hold check box is cleared:
    • If the Amount field is available in the top part of the window, enter the total amount of the credit note.
    • If the Amount field is not available in the window, make sure the total amount of the document is displayed correctly in the Balance field.
13. In the window toolbar, click .