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Create purchase credit notes

Created on  | Last modified on 

Summary

Record a credit note received from a supplier for returned goods or cancelled invoices in Sage Accounting.

Resolution

How this works

There are two ways to create credit notes

  • Credit an invoice
    Use this to cancel an invoice or when the credit note exactly matches a single invoice
  • Create the credit note and match it to invoices later
    Use this when your supplier has sent you credit to use against future purchases or the credit note is being used to pay more than one invoice
    Once saved, match the credit note to the invoice or invoices that it's paying

Credit notes for stock items

We track your stock by recording stock movements each time you buy and sell stock. Each stock movement has a type which records whether you've added or removed the stock.

When you record a credit note that includes a stock item, we create a Negative Goods In stock movement. This automatically reduces your stock level.


Create a single credit note

  1. From Purchases, select Purchase Invoices.
  2. Open the invoice you want to credit.
  3. Choose Add Credit Note from the panel on the right. We create a credit note with the same details as the original invoice.
  4. Change the details, as necessary. When you change the price, we automatically update the VAT and Total.
    The total value of the credit note cannot be more than the original invoice.
  5. If this is a draft credit note, select the Save as draft check box. You can return to the credit note later when you’re ready to update the ledgers and clear this check box.
  6. If required, enter any notes.
  7. If you want to attach a file, select the attachment Image button. Read more on how to add attachments.
  8. When you have finished, choose Save.

The invoice now shows as Paid or Part-paid.


Create a standalone credit note and match it to invoices later

  1. From Purchases, select Purchase Credit Notes.
  2. Enter the supplier, date, and reference.
  3. Enter the details of the items you've credited. Enter each item on a separate line. Make sure you include the description, ledger account, price, and VAT rate.
  4. If the credit note is for purchases from a VAT-registered supplier in the EU, enter in the Goods/Services box.
  5. If required, enter any notes.
  6. If you want to come back and update the credit note later, choose Save as draft.
  7. If you want to attach a file, select the attachment Image option. Read more on how to add attachments.
  8. When you have finished, choose Save.

 









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