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<ManualTopic ID="/baanerp/tf/onlinemanual/000109" xml:lang="en">
   <Header>
      <Title>Credit notes</Title>
      <Keyword type="header" order="d1e1945326">
         <Level1>Credit notes</Level1>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>If the customer returns
		part of the goods, or if you create invoice corrections, you or your business
		partner can create a <Link href="/baanerp/tf/glossary/glossary#CreditNotes_tf" role="glossary">credit note</Link> to correct the
		amount payable for an invoice. If you automatically process the invoices, ERP Enterprise automatically
		generates credit notes and assigns credit notes to invoices.</Paragraph>
   </AimSection>
   <GeneralSection>
      <List>
         <ListIntro>You can create credit notes for the transaction types of
		  different categories, such as:</ListIntro>
         <ListItem> 
            <GUIRef href="/baanerp/tf/domains/gld.catg#sales.cred" role="option">Sales Credit Notes</GUIRef>
         </ListItem>
         <ListItem> 
            <GUIRef href="/baanerp/tf/domains/gld.catg#purchase.cred" role="option">Purchase Credit Notes</GUIRef>
         </ListItem>
         <ListItem> 
            <GUIRef href="/baanerp/tf/domains/gld.catg#sales.inv" role="option">Sales Invoices</GUIRef>
         </ListItem>
         <ListItem> 
            <GUIRef href="/baanerp/tf/domains/gld.catg#purchase.inv" role="option">Purchase Invoices</GUIRef>
         </ListItem>
      </List>
      <Paragraph>Credit notes are linked to invoices rather than to invoice
		lines. However, if you use <Link href="/baanerp/tc/glossary/glossary#PaymenSchedu_tc" role="glossary">payment schedules</Link> or <Link href="/baanerp/tf/glossary/glossary#000492" role="glossary">receipts against shipments</Link>, you can assign credit notes
		to the payment schedule lines. For details, refer to <Link href="/baanerp/tf/onlinemanual/000477#credit.notes" role="manual">Credit notes for payment schedules</Link>.</Paragraph>
      <Paragraph>If you select open entries for payment or direct debit, ERP Enterprise searches for credit
		notes that you can apply to the open entries before you perform the payment or
		direct debit procedure.</Paragraph>
      <GeneralSection>
         <SectionTitle>Creating a credit note</SectionTitle>
         <List>
            <ListIntro>To create a credit note in the <GUIRef href="/baanerp/tf/gld/tfgld1101m000" role="session">Transactions (tfgld1101m000)</GUIRef> 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:</ListIntro>
            <ListItem> 
               <GUIRef href="/baanerp/tf/acp/tfacp2600m000" role="session">Purchase Invoice Entry (tfacp2600m000)</GUIRef>
            </ListItem>
            <ListItem> 
               <GUIRef href="/baanerp/tf/acr/tfacr1110s000" role="session">Sales Invoices (tfacr1110s000)</GUIRef>
            </ListItem>
         </List>
         <Paragraph>If you use one of the
		  transaction categories <GUIRef href="/baanerp/tf/domains/gld.catg#sales.inv" role="option">Sales Invoices</GUIRef> or <GUIRef href="/baanerp/tf/domains/gld.catg#purchase.inv" role="option">Purchase Invoices</GUIRef>, you can create a credit note by entering a negative invoice
		  amount.</Paragraph>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Using a Sales Credit Notes category</SectionTitle>
         <Paragraph>If you use one of the
		  transaction categories <GUIRef href="/baanerp/tf/domains/gld.catg#sales.cred" role="option">Sales Credit Notes</GUIRef> or <GUIRef href="/baanerp/tf/domains/gld.catg#purchase.cred" role="option">Purchase Credit Notes</GUIRef>, you must enter a positive amount.</Paragraph>
         <Paragraph>The <GUIRef href="/baanerp/tf/gld/tfgld0511m000#tfgld011.cpst" role="manual">Negative Amount for Credit Notes</GUIRef> parameter in the <GUIRef href="/baanerp/tf/gld/tfgld0511m000" role="session">Transaction Types (tfgld0511m000)</GUIRef> 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 Enterprise saves and regards the amount
		  that was entered as a negative amount.</Paragraph>
         <Paragraph>The default value for
		  the transaction line amount in the <GUIRef href="/baanerp/tf/acr/tfacr1111s000" role="session">Sales Invoice Transactions (tfacr1111s000)</GUIRef> session is a negative credit amount.</Paragraph>
         <ExampleSection>
            <SectionTitle>Example</SectionTitle>
            <List>
               <ListIntro>A credit note of USD 800 is entered for a transaction
				type of a <GUIRef href="" role="manual">Credit Note</GUIRef> category. You enter a positive invoice
				amount of USD 800. Two scenarios are possible:</ListIntro>
               <ListItem>If the <GUIRef href="/baanerp/tf/gld/tfgld0511m000#tfgld011.cpst" role="manual">Negative Amount for Credit Notes</GUIRef> check box in the <GUIRef href="/baanerp/tf/gld/tfgld0511m000" role="session">Transaction Types (tfgld0511m000)</GUIRef> 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.</ListItem>
               <ListItem>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.</ListItem>
            </List>
         </ExampleSection>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Using the Sales Invoices or Purchase Invoices transaction category</SectionTitle>
         <Paragraph>If you use a
		  transaction type that belongs to one of the categories <GUIRef href="/baanerp/tf/domains/gld.catg#sales.inv" role="option">Sales Invoices</GUIRef> or <GUIRef href="/baanerp/tf/domains/gld.catg#purchase.inv" role="option">Purchase Invoices</GUIRef>, you can create a credit note by entering a negative invoice
		  amount in the invoice header.</Paragraph>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <Paragraph>You can only create
			 a credit note in this way if the <GUIRef href="/baanerp/tf/gld/tfgld0511m000#tfgld011.cpst" role="manual">Negative Amount for Credit Notes</GUIRef> check box in the <GUIRef href="/baanerp/tf/gld/tfgld0511m000" role="session">Transaction Types (tfgld0511m000)</GUIRef> session is selected for the used transaction type. If this check box is cleared, you
			 cannot enter a negative invoice header amount.</Paragraph>
         </Note>
         <ExampleSection>
            <SectionTitle>Example</SectionTitle>
            <Paragraph>A credit note of USD
			 -800 is entered for a transaction type that belongs to the <GUIRef href="/baanerp/tf/domains/gld.catg#sales.inv" role="option">Sales Invoices</GUIRef> category. When the credit note is posted, ERP Enterprise debits the ACR
			 control account for -800. The default amount for the entry of the sales invoice
			 transaction lines in the <GUIRef href="/baanerp/tf/acr/tfacr1111s000" role="session">Sales Invoice Transactions (tfacr1111s000)</GUIRef> session is -800 credit.</Paragraph>
         </ExampleSection>
      </GeneralSection>
      <GeneralSection ID="assign">
         <SectionTitle>Assigning credit notes to original invoices</SectionTitle>
         <Paragraph>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.</Paragraph>
         <Paragraph>These two situations
		  are illustrated below:</Paragraph>
         <Paragraph>You can link a credit
		  note to one invoice when you enter the credit note in the <GUIRef href="/baanerp/tf/acp/tfacp2600m000" role="session">Purchase Invoice Entry (tfacp2600m000)</GUIRef> session. In the <GUIRef href="/baanerp/tf/acr/tfacp2600m000#tfacr200.oinv" role="manual">Original Invoice</GUIRef> field, you can enter the document number of the invoice to which you want to
		  link the credit note.</Paragraph>
         <ProcedureList>
            <ListIntro>A credit note can also be related to several invoices. To
			 assign a credit note to more than one invoice, take the following steps:</ListIntro>
            <ListItem>In the <GUIRef href="/baanerp/tf/gld/tfgld1101m000" role="session">Transactions (tfgld1101m000)</GUIRef> session, select a transaction type of the <GUIRef href="/baanerp/tf/domains/gld.catg#sales.corr" role="option">Sales Corrections</GUIRef> category or the <GUIRef href="/baanerp/tf/domains/gld.catg#purchase.corr" role="option">Purchase Corrections</GUIRef> category.</ListItem>
            <ListItem>In the <GUIRef href="/baanerp/tf/gld/tfgld1101m000" role="session">Transactions (tfgld1101m000)</GUIRef> session, select the record you created and click <GUIRef href="/baanerp/tf/gld/tfgld1101m100#enter.transactions" role="command">Transaction Entry</GUIRef> on the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu. One of
			 the sessions <GUIRef href="/baanerp/tf/acp/tfacp2120m000" role="session">Assign Credit Notes to Invoices (tfacp2120m000)</GUIRef> or <GUIRef href="/baanerp/tf/acr/tfacr2120m000" role="session">Business Partner - Credit Notes (tfacr2120m000)</GUIRef> is started.</ListItem>
            <ListItem>Select the credit
			 note and link it to the appropriate purchase invoices or sales invoices.</ListItem>
            <ListItem>On the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu, start one
			 of the sessions <GUIRef href="/baanerp/tf/acp/tfacp2121s000" role="session">Assign Invoices/Schedules to Credit Notes (tfacp2121s000)</GUIRef> or <GUIRef href="/baanerp/tf/acr/tfacr2121m000" role="session">Assign Credit Notes to Invoices (tfacr2121m000)</GUIRef>. In these sessions you can distribute the
			 total credit note amount over the related invoices.</ListItem>
         </ProcedureList>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <List>
               <ListItem>You can only link credit notes and invoices if they have
				the same <Link href="/baanerp/ci/glossary/glossary#000006" role="glossary">invoice currency</Link> and <Link href="/baanerp/tc/glossary/glossary#CurrenRates_tc" role="glossary">currency exchange rate</Link>.</ListItem>
               <ListItem>In the <GUIRef href="/baanerp/tf/acr" role="module">Accounts Receivable</GUIRef> module, ERP Enterprise checks if the credit
				note you are linking is marked as a <Link href="/baanerp/tf/glossary/glossary#DoubtfInvoic_tf" role="glossary">doubtful invoice</Link>. A doubtful
				credit note can only be linked to a doubtful sales invoice.</ListItem>
               <ListItem>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.</ListItem>
               <ListItem>Credit notes that are linked to invoices are deducted from
				the total invoice amount before it is paid.</ListItem>
            </List>
         </Note>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Assigning credit notes to payment schedules</SectionTitle>
         <Paragraph>If you link <Link href="/baanerp/tc/glossary/glossary#PaymenSchedu_tc" role="glossary">payment schedule</Link> to sales
		  invoices and purchase invoices, you can assign credit notes to the payment
		  schedule lines or receipt schedule lines.</Paragraph>
         <List>
            <ListIntro>Related topics</ListIntro>
            <ListItem>
               <Link href="/baanerp/tf/onlinemanual/000477#credit.notes" role="manual">Credit notes for payment schedules</Link>
            </ListItem>
            <ListItem>
               <Link href="/baanerp/tf/onlinemanual/000506" role="manual">To assign credit notes to receipt schedules</Link>
            </ListItem>
            <ListItem>
               <Link href="/baanerp/tf/onlinemanual/000507" role="manual">To assign credit notes to payment schedules</Link>
            </ListItem>
         </List>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Generating an overview of applied credit
		  notes</SectionTitle>
         <Paragraph>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.</Paragraph>
         <Paragraph>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.</Paragraph>
         <Paragraph>Use the <GUIRef href="/baanerp/tf/acp/tfacp4160m000" role="session">Assigned Credit Notes Letter (tfacp4160m000)</GUIRef> 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 <GUIRef href="/baanerp/tf/acp/tfacp4161m000" role="session">Assigned Credit Notes Layout (tfacp4161m000)</GUIRef> session.</Paragraph>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Credit notes in reports</SectionTitle>
         <Paragraph>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.</Paragraph>
         <Paragraph>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.</Paragraph>
      </GeneralSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000491" role="manual">The payment process</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000104" role="manual">Processing purchase invoices</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000477#credit.notes" role="manual">Credit notes for payment schedules</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000506" role="manual">To assign credit notes to receipt schedules</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000507" role="manual">To assign credit notes to payment schedules</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000123" role="manual">Using transaction types</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>