Credit Note Purpose

A credit note is an official acknowledgment of a refund, return of goods, or adjustment made to a previous transaction. It is issued for various reasons such as invoice errors, damaged goods, order cancellations, or overpayments. Credit notes help in ensuring accurate financial records and maintaining transparency in transactions, enabling customers to receive the appropriate credit against their accounts.

In our system
The Credit Note module facilitates the creation and management of credit notes associated with invoices. It allows users to issue credit notes for reasons such as invoice discrepancies, returns, damaged goods, or order cancellations. The system ensures that credit notes are accurately linked to the relevant invoices, maintaining seamless integration with financial records. Users can easily track issued credit notes, monitor adjustments, and reconcile payments. This helps maintain up-to-date financial records and provides a clear audit trail of credit transactions, improving transparency and accuracy in accounting processes.

Navigation Path

To access and manage credit notes related to invoices, follow these steps:

1. Navigate to the Main Menu:
   • Click on the main navigation icon in the top-right corner to open the system’s menu.
2. Select ‘Sales’:
   • From the navigation menu, choose the Sales section, which includes various options related to sales transactions.
3. Open ‘Invoices’:
   • Within the Sales section, click on Invoices to access all the invoicing options and activities.
4. Click on ‘Credit Note’:
   • In the Invoices section, select Credit Note to view and manage credit notes associated with sales invoices.

Listing

Users can view a comprehensive list of all credit notes added in the system. The listing provides detailed information about each credit note for better management and tracking.

The following details are available in the Credit Note Listing:

• Request Code: A unique identifier for the credit note request.
• Customer: The name of the customer associated with the credit note.
• Invoice Number: The invoice number to which the credit note is linked.
• GL (General Ledger): The general ledger account associated with the credit note transaction.
• Total Amount: The total amount of the credit note issued.
• Final Amount: The adjusted final amount after any discounts or adjustments.
• Added By: The user who created the credit note.
• Status: The current status of the credit note (e.g., Active, Closed, Cancelled).
• Approval Status: The approval status of the credit note (e.g., Pending, Approved, Rejected).

When a user clicks on any  Credit Note in the listing, a side drawer opens with an option for More Details. Clicking on More Details displays a detailed page showing an overall summary of that Credit Note.

Add/Edit Credit Note

When adding or editing a credit note, users need to input the following information:

• Customer (Required):
  • Select the customer for whom the credit note is being issued.
• Invoice (Required):
  • Choose the relevant invoice associated with the credit note.
• Exchange Rate:
  • Set the applicable exchange rate.
• GL (Required):
  • Specify the General Ledger code related to the transaction.
• VAT Withheld?:
  • Option to indicate if VAT is withheld.
• Items:
  • Add item details including:
    • Description (Required)
    • Item GL
    • Quantity (Required)
    • Unit Price
    • Amount
    • Tax Calculation
    • Tax Group
    • Tax Amount
    • Taxable Amount
    • Final Amount (Required)
    • WHT Tax
    • WHT Amount
• Remarks: Add any additional notes or remarks.
• Attachment: Option to attach relevant documents.

Summary:
A summary of all the details will be shown before saving or submitting the credit note.

Actions:

• Save as Draft: Allows users to save the credit note for later editing.
• Submit: Finalize and submit the credit note for approval.
• Discard: Discard the current entry.

Once the details are added this  Credit Note  will be viewed in the listing page.