Video, applying credit notes to invoices

Credit Notes are negative sales invoices, where you owe a customer for returned products etc. Likewise a Credit Note could be a negative supplier invoice where a supplier owes you money for products you may have returned for credit.

In the quick video below we have created a credit note for a customer who has returned goods and then applied that credit note to an outstanding receivable invoice that a customer still owes, using the Adjust > Contra option.

Alternatively to the Adjust Contra option, assuming that the customer reduced their payment for the original invoice, you could apply the credit note at the time of entering the receipt.

e.g., Autumn Fabrics purchased $603.75 of widgets on inv. 2135 and returned $42.00 of widgets on the Credit Note 2136.

The customer then sent in a payment for the difference $561.75, to pay off the outstanding amount. You could then clear the two transactions (invoice & credit Note) from your receivables in the Receipt like so instead of adjusting a head of time as described in the video.

Your choice.

Note: Since credit notes relate to invoices, you cannot create a credit note in Cashbook as it is cash based accounting, not accrual based with AR & AP. So you handle returns from customers as negative receipts.

For MoneyWorks support in Canada and the USA contact us at moneyworkssupport.ca

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s