{"id":367,"date":"2019-01-12T10:26:34","date_gmt":"2019-01-12T10:26:34","guid":{"rendered":"http:\/\/sagefinancialsknowhow.com\/?p=367"},"modified":"2019-01-21T11:22:36","modified_gmt":"2019-01-21T11:22:36","slug":"sales-credit-notes","status":"publish","type":"post","link":"https:\/\/sagefinancialsknowhow.com\/sales-credit-notes\/","title":{"rendered":"Sales Credit Notes"},"content":{"rendered":"<p>The easiest way to enter a Credit Note is to raise it against and invoice. However there are situations when this does not work (see below)<\/p>\n<h3>Raise a Credit Note against an invoice<\/h3>\n<div class=\"bg-margin-for-link\"><input type='hidden' bg_collapse_expand='65f73588992747025533105' value='65f73588992747025533105'><input type='hidden' id='bg-show-more-text-65f73588992747025533105' value='Show More'><input type='hidden' id='bg-show-less-text-65f73588992747025533105' value='Show Less'><a id='bg-showmore-action-65f73588992747025533105' class='bg-showmore-plg-link bg-arrow '  style=\" color:inherit;;\" href='#'>Show More<\/a><div id='bg-showmore-hidden-65f73588992747025533105' ><\/p>\n<ul>\n<li>Navigate to the Invoice and choose \u2018Credit\u2019 from the drop-down at the top right.<br \/>\n<img loading=\"lazy\" class=\"alignnone wp-image-332\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2018\/12\/CreditMenu.jpg\" alt=\"\" width=\"167\" height=\"432\" \/><\/li>\n<\/ul>\n<h3 style=\"padding-left: 30px\"><\/h3>\n<p style=\"padding-left: 60px\"><img loading=\"lazy\" class=\"alignnone wp-image-331\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2018\/12\/CreditConversion.jpg\" alt=\"\" width=\"870\" height=\"246\" \/><\/p>\n<ul>\n<li>This then gives you the opportunity to partially credit the invoice by choosing to credit a line items at a time by choosing the quantity to credit.<\/li>\n<li>Finally, [Post] the credit note<\/li>\n<\/ul>\n<p>If the Invoice was unpaid, the credit not automatically nets off against the invoice and the transaction is complete. If the Invoice is partially paid, the balance is available for Bank Matching.<\/p>\n<p style=\"text-align: left\"><\/div><\/div>\n<p>&nbsp;<\/p>\n<h3>Raise a Credit Note against MULTIPLE Invoice<\/h3>\n<div class=\"bg-margin-for-link\"><input type='hidden' bg_collapse_expand='65f735889958b4090336393' value='65f735889958b4090336393'><input type='hidden' id='bg-show-more-text-65f735889958b4090336393' value='Show More'><input type='hidden' id='bg-show-less-text-65f735889958b4090336393' value='Show Less'><a id='bg-showmore-action-65f735889958b4090336393' class='bg-showmore-plg-link bg-arrow '  style=\" color:#4a4949;;\" href='#'>Show More<\/a><div id='bg-showmore-hidden-65f735889958b4090336393' ><\/p>\n<p>If you want to raise a credit note against multiple invoices you create the Credit Note independent of any invoices and then net it off against the required invoices.<\/p>\n<ul>\n<li>Navigate to the &#8216;Sales &#8211; SALES CREDIT NOTE&#8217; and click [New]<\/li>\n<li>Fill in the header details but do NOT fill in &#8216;Sales Invoice&#8217; then click [Save]<\/li>\n<li>Now fill in the Credit Note Line Items<\/li>\n<li>Save and Post the Credit Note<\/li>\n<\/ul>\n<p>The Credit Note has now been created and you need to net it off against each of the invoices:<\/p>\n<ul>\n<li>Navigate to the &#8216;Sales &#8211; NET-OFF SALES CN&#8217; and click [New]<\/li>\n<\/ul>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-474\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/01\/NetOffSalesCreditNote.jpg\" alt=\"\" width=\"775\" height=\"631\" \/><\/p>\n<ul>\n<li>The Date should be the date of the Credit Note<\/li>\n<li>Add something memorable to the Reference<\/li>\n<li>The Amount is the amount of the Invoice you want to Net Off<\/li>\n<li>Enter the Invoice Number you want to net-off and the number of the Credit Note you have just created<\/li>\n<li>Save and Post the journal<\/li>\n<\/ul>\n<p>You can create additional &#8216;NET-OFF SALES CN&#8217; Journals for each invoice you want to net-off.<\/p>\n<p><\/div><\/div>\n<h3><\/h3>\n<h3>Raise a Credit Note against a PAID invoice<\/h3>\n<div class=\"bg-margin-for-link\"><input type='hidden' bg_collapse_expand='65f73588997a61099876584' value='65f73588997a61099876584'><input type='hidden' id='bg-show-more-text-65f73588997a61099876584' value='Show More'><input type='hidden' id='bg-show-less-text-65f73588997a61099876584' value='Show Less'><a id='bg-showmore-action-65f73588997a61099876584' class='bg-showmore-plg-link bg-arrow '  style=\" color:#4a4949;;\" href='#'>Show More<\/a><div id='bg-showmore-hidden-65f73588997a61099876584' ><\/p>\n<p>If the invoice has been paid, you use the same process as above, but you will end up with an outstanding balance on the Credit Note.<\/p>\n<p>This can then be netted-off against a future invoice (using &#8216;Sales &#8211; NET-OFF SALES CN&#8217;) or using &#8216;Sales &#8211; CUSTOMER REFUND&#8217; if you pay off the credit note.<\/p>\n<p><\/div><\/div>\n<p>&nbsp;<\/p>\n<h3 style=\"text-align: left;\">Credit note with foreign currency<\/h3>\n<div class=\"bg-margin-for-link\"><input type='hidden' bg_collapse_expand='65f73588998740087396026' value='65f73588998740087396026'><input type='hidden' id='bg-show-more-text-65f73588998740087396026' value='Show More'><input type='hidden' id='bg-show-less-text-65f73588998740087396026' value='Show Less'><a id='bg-showmore-action-65f73588998740087396026' class='bg-showmore-plg-link bg-arrow '  style=\" color:inherit;;\" href='#'>Show More<\/a><div id='bg-showmore-hidden-65f73588998740087396026' ><\/p>\n<p>The simple method of raising a credit note against an invoice does not work unless the exchange rate is exactly the same for both the Invoice and the Credit Note.<\/p>\n<p>If the exchange rate has changed you should follow this process:<\/p>\n<ul>\n<li>Raise a credit note against the invoice as described above but DO NOT post is (or unpost it if you do)<\/li>\n<li>Edit the Credit Note and remove the Sales Invoice Number tag<br \/>\n<img loading=\"lazy\" class=\"alignnone wp-image-338\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2018\/12\/CreditRemoveInvoice1.jpg\" alt=\"\" width=\"798\" height=\"155\" \/><br \/>\nThis creates an independent Credit Note, but copies all the details from the Invoice.<\/li>\n<li>Make sure the Exchange Rate is correct and re-post the Credit Note.<\/li>\n<li>Now you can [Pay] the Credit Note USE EXACTLY THE SAME EXCHANGE RATE as you used in the Credit Note:<br \/>\n<img loading=\"lazy\" class=\"alignnone wp-image-339\" src=\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2018\/12\/CreditPayFx.jpg\" alt=\"\" width=\"590\" height=\"442\" \/><\/li>\n<li>Now you can [Pay] the Sales Invoice creating a &#8216;Customer Receipts AI&#8217; Journal. You can use the exchange rate prevailing at the time you raise the Credit Note.<\/li>\n<\/ul>\n<p>The Invoice and Credit note are now both fully paid with the correct currency adjustments.<\/p>\n<p><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The easiest way to enter a Credit Note is to raise it against and invoice. However there are situations when this does not work (see below) Raise a Credit Note against an invoice &nbsp; Raise a Credit Note against MULTIPLE Invoice Raise a Credit Note against a PAID invoice &nbsp; Credit note with foreign currency<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"_links":{"self":[{"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/posts\/367"}],"collection":[{"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/comments?post=367"}],"version-history":[{"count":0,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/posts\/367\/revisions"}],"wp:attachment":[{"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/media?parent=367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/categories?post=367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sagefinancialsknowhow.com\/wp-json\/wp\/v2\/tags?post=367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}