| # Credit notes If the customer returns part of the goods, or if you create invoice corrections, you or your business partner can create a credit note to correct the amount payable for an invoice. If you automatically process the invoices, ERP LN automatically generates credit notes and assigns credit notes to invoices. You can create credit notes for the transaction types of different categories, such as: Sales Credit Notes Purchase Credit Notes Sales Invoices Purchase Invoices Credit notes are linked to invoices rather than to invoice lines. However, if you use payment schedules or receipts against shipments, you can assign credit notes to the payment schedule lines. For details, refer to Credit notes for payment schedules. If you select open entries for payment or direct debit, ERP LN searches for credit notes that you can apply to the open entries before you perform the payment or direct debit procedure. To create a credit note To create a credit note in the Transactions (tfgld1101m000) session, select a transaction type that has one of these categories. To actually create the credit note, you can now start one of the following sessions: Purchase Invoices (tfacp1110s000) Sales Invoices (tfacr1110s000) If you use one of the transaction categories Sales Invoices or Purchase Invoices, you can create a credit note by entering a negative invoice amount. Using a Sales Credit Notes category If you use one of the transaction categories Sales Credit Notes or Purchase Credit Notes, you must enter a positive amount. The Negative Amount for Credit Notes parameter in the Transaction Types (tfgld0511m000) session, where the transaction type is defined, determines if the credit note is posted as a negative or positive amount. If this check box is selected, ERP LN saves and regards the amount that was entered as a negative amount. The default value for the transaction line amount in the Sales Invoice Transactions (tfacr1111s000) session is a negative credit amount. Example A credit note of USD 800 is entered for a transaction type of a Credit Note category. You enter a positive invoice amount of USD 800. Two scenarios are possible: If the Negative Amount for Credit Notes check box in the Transaction Types (tfgld0511m000) session is cleared for the used transaction type, a credit amount of USD 800 is posted to the ACR control account. The default value for the transaction line is then a debit of USD 800. If this check box is selected, a debit amount of USD -800 is posted to the ACR control account. The default value for the transaction line is a credit of USD -800. Using the Sales Invoices or Purchase Invoices transaction category If you use a transaction type that belongs to one of the categories Sales Invoices or Purchase Invoices, you can create a credit note by entering a negative invoice amount in the invoice header. Note You can only create a credit note in this way if the Negative Amount for Credit Notes check box in the Transaction Types (tfgld0511m000) session is selected for the used transaction type. If this check box is cleared, you cannot enter a negative invoice header amount. Example A credit note of USD -800 is entered for a transaction type that belongs to the Sales Invoices category. When the credit note is posted, ERP LN debits the ACR control account for -800. The default amount for the entry of the sales invoice transaction lines in the Sales Invoice Transactions (tfacr1111s000) session is -800 credit. Assigning credit notes to original invoices You can assign a credit note to one invoice or to several invoices. You can also include credit notes, without assigning them to invoices, as a payment in the automatic payment procedure. These two situations are illustrated below: You can link a credit note to one invoice when you enter the credit note in one of the Sales Invoices (tfacr1110s000) session or the Purchase Invoices (tfacp1110s000) session. In the Original Invoice field, you can enter the document number of the invoice to which you want to link the credit note. A credit note can also be related to several invoices. To assign a credit note to more than one invoice, take the following steps: In the Transactions (tfgld1101m000) session, select a transaction type of the Sales Corrections category or the Purchase Corrections category. In the Transactions (tfgld1101m000) session, select the record you created and click Transaction Entry on the Specific menu. One of the sessions Assign Credit Notes to Invoices (tfacp2120m000) or Business Partner - Credit Notes (tfacr2120m000) is started. Select the credit note and link it to the appropriate purchase invoices or sales invoices. On the Specific menu, start one of the sessions Assign Invoices/Schedules to Credit Notes (tfacp2121s000) or Assign Credit Notes to Invoices (tfacr2121m000). In these sessions you can distribute the total credit note amount over the related invoices. Note You can only link credit notes and invoices if they have the same invoice currency and currency exchange rate. In the Accounts Receivable module, ERP LN checks if the credit note you are linking is marked as a doubtful invoice. A doubtful credit note can only be linked to a doubtful sales invoice. Credit notes that are not linked to invoices are included in the automatic payment procedure. The credit note is selected for payment in the same way as normal invoices. Credit notes that are linked to invoices are deducted from the total invoice amount before it is paid. Assigning credit notes to payment schedules If you link payment schedule to sales invoices and purchase invoices, you can assign credit notes to the payment schedule lines or receipt schedule lines. For details, refer to the following topics: Credit notes for payment schedules To assign credit notes to receipt schedules To assign credit notes to payment schedules Generating an overview of applied credit notes If you reduce payments to a pay-to business partner by the amounts of existing credit notes, it can be unclear for the business partner which credit notes you used to reduce the payment amounts. This can lead to confusion and misunderstandings. To solve this situation, you can create a report of the invoices, the credit notes linked to the invoices, and their amounts, for a selection of invoice-from business partners. You can send this report to your suppliers for information. Use the Assigned Credit Notes Letter (tfacp4160m000) session to generate and print an overview of the credit notes and the related invoices. You can define the credit notes letter layout in the Assigned Credit Notes Layout (tfacp4161m000) session. Credit notes in reports A credit note amount is displayed as negative. If a credit note is linked to one or more invoices, the assigned amount of the credit note is deducted from the open invoice amount. The linked amount is then visible as a payment line. The invoice amount that is displayed for an invoice to which a credit note is linked is the original invoice amount. The open invoice amount is the invoice amount minus the linked credit note amount. The linked credit note amount is visible as a payment line. Related topics The payment process To process purchase invoices Credit notes for payment schedules To assign credit notes to receipt schedules To assign credit notes to payment schedules To use transaction types |