Create and manage purchase credit notes
If you make a purchase from a supplier and then later return the goods, or if you need to cancel an invoice, you can quickly create a credit note from the original invoice. You can also create a standalone credit note, and allocate this to any outstanding invoices for the relevant supplier at a later date.
Before you create a credit note, if you haven’t done so already, you need to create a contact record for your supplier. If you regularly purchase the same products from your suppliers, you can also create records for these.
Sage One tracks your stock by recording stock movements each time stock is bought and sold. Each stock movement has a type which records whether stock was added or removed. So whenever you record a purchase credit note that includes a stock item, a Negative Goods In transaction is tracked and Sage One automatically decreases your stock levels as you have returned the goods to the supplier.
If you want to correct a price rather than change your quantity of stock, we’ve created a guide to help you do this.
- 1. Purchases > Purchase Invoices > click the invoice you want to credit.
- 2. Manage Invoice > Create Credit Note.
The credit note appears with the same details as the original invoice.
- 3. If necessary amend the details. For more information, please see the following section, To record a stand-alone purchase credit note.
The credit note net and VAT totals appear at the bottom of the credit note. To view a breakdown of the VAT amounts, click the Total VAT, then to return to the credit note, close the VAT Analysis window.
- 4. If this is a draft credit note, select the Save as draft check box. You can return to the credit note at a later date when you’re ready to update the ledgers and clear this check box.
- 5. If required, enter any notes.
- 6. If you want to attach a file, for example a copy of the credit note the supplier sent you, click the attachment button > Upload files > browse to and double-click the file. Find out more about attachments >>
- 7. Click Save.
You’ve successfully entered a purchase credit note against the original purchase invoice. If the credit note covers the full value of the invoice, the invoice status appears as Paid, otherwise the status appears as Part Paid.
- 1. Purchases > Purchase Credit Notes > New Credit Note.
- 2. Enter the following information:
|Name *||Enter the supplier name. As you type, a list of suppliers appears > choose the supplier from the list.
Tip: To add a new supplier, click the [Search for supplier] drop-down > Add a supplier > enter the relevant information > Save.
|Credit Date *||Enter the date of the credit note.|
|Supplier Reference||Enter a reference from your supplier, for example, their credit note number.|
|Reference||If necessary, enter any additional reference or details.|
* These details are compulsory.
- 3. To record the purchase of a specific product, in the Product box, type the name of the product > choose the relevant product.
The product information automatically completes in the next available line. If necessary, you can change this information, for example, the quantity or unit price.
To add a new product, click the Product drop-down > Add product > enter the relevant information > Save.
- 4. To add more products to your invoice, repeat the step above.
- 5. If you don’t want to add a product to the invoice, enter the following information:
|Description *||The description for the credit, for example the items originally purchased.|
|Ledger Account *||Choose the required nominal code.|
|Item Code||If necessary, enter a code, for example a part number or stock code.|
|Qty *||Enter the quantity of items the credit is for.|
|Unit Price *||Enter the net value of the credit.|
|VAT Rate *||Choose the relevant VAT rate.
Tip: If your business is VAT registered and you don’t have the option to choose a VAT rate, check you’ve entered your VAT scheme correctly in Settings > Financial Settings.
|VAT Amount *||This calculates automatically based on the quantity, unit price and VAT rate.|
|Total||This is the total gross value of this item line.|
* These details are compulsory.
- 6. If you’ve created transaction analysis types, for example departments, click the double chevrons > choose the relevant analysis category.
- 7. If the credit note is for goods or services purchased from a VAT registered supplier in the EU, click the double chevrons > choose whether this is item is for goods and related services or a stand-alone service.
- 8. To add more transactions, on the next line, repeat the step above.
If you want to save this credit note as a draft, for example, because you need to check some details with your supplier and don’t want to update the ledgers, select the Save as draft check box. When you’re ready to update the ledgers, simply open the draft credit note, make any changes as necessary and clear the Save as draft check box.
- 9. If required, enter any notes.
- 10. If you want to attach a file, for example a copy of the credit note the supplier sent you, click the attachment button > Upload files > browse to and double-click the file. Find out more about attachments >>
The overall net amount of the invoice and Vat total appear at the bottom of the invoice. To view a breakdown of the VAT calculated, click Total VAT, then to return to the invoice, close the VAT Analysis window.
- 11. Click Save.
You’ve successfully entered a purchase credit note and it remains outstanding until you allocate it to an invoice or the supplier sends you a refund.
- Purchases > Purchase Credit Notes > click the required credit note.
If this is a stand-alone credit note, and it hasn’t yet been included on a VAT Return, here you can edit the existing information. To do this, simply follow from step 2 in the previous section To record a standalone purchase credit note. If it’s been allocated to another transaction or included on a VAT Return, you can’t amend it. For more information, please see To edit or void a purchase credit note.
You can also record a refund against the credit note and use the Manage Credit Note option to set it as disputed.
If you dispute a credit note, the values remain in your accounts. If required you can clear the dispute status from Manage Credit Note > Clear Dispute.
You can easily view which purchase invoices have been allocated to your purchase credit notes.
- 1. Locate and open the credit note from the activity section on the contact record or, from the Purchases tab.
- 2. Click the Amount Paid value.
The Payments and Allocations option appears.
The allocation details of the transaction appears here. To view further details, click the value in the Amount column.