Sales credit note

When a sales invoice is posted, you can create a credit note from the invoice, or from a return request if it requires a credit note.

The sales credit note is part of the sales process as illustrated in Sales overview.

On this page you can find the description of the sales credit note workflow. You can also find more detailed information about the following topics:

Prerequisites

Sequence number

Site

Customer

Item

Credit note reason

Sales order

Sales shipment

Sales invoice

Sales return request (optional)

Sales return receipt (optional)
Previous steps

Sales invoice

Sales credit note flow

This is an overview of the sales credit note workflow, including the sales return request and sales return receipt workflows because they are closely linked (opens new window, PDF, 0.15MB).

A process flow chart showing the 3 options for a sales return request: a receipt and credit note, a receipt and no credit note, or a credit note only.

These 3 images are a breakdown of the overview above.

The detailed sales return request flow

The sales return request flow

The detailed sales return receipt flow

The sales return receipt flow

The detailed sales credit note flow

The sales credit note flow

  1. Create the credit note from an invoice or from a return request.
  2. Post the credit note.

The sales credit note flow in detail

  • Create the sales credit note.

    • From a sales invoice

    • From a sales return request when the return request reason is Receipt and credit note, as soon as one of the return receipts linked to the return request is posted

    • From a sales return request when the return request reason is Credit note only, as soon as the return request is approved or confirmed

    The credit note is created with status Draft.

  • Post the credit note

    When the posting fails, the credit note status changes to Posting error. You can go to the Posting tab for details about the posting and the error.

    When the posting is successful, the credit note status changes to Posted and the flow stops.

Create a sales credit note

  • When there is no return request, to create a sales credit note, select Credit on the invoice.

  • When there is a return request with a return receipt, you can create a credit note by selecting Credit on the return request as soon as the return receipt is posted. If there are several return receipts, as soon as one return receipt is posted, you can create a credit note to credit the quantity for this return receipt.

  • When there is a return request with no return receipt but a credit note only, you can create a credit note by selecting Credit on the return request as soon as the return request is approved or confirmed.

To create a credit note, the invoice needs to be posted. You can create a credit note from a return request if it is linked to a shipment that is invoiced.

The system creates the credit note. All information defaults to the invoice. You can edit some of the fields.

  1. If sequence number rules are defined for the sales credit notes on the Sequence number assignment page, the sales credit note number populates automatically when you save the credit note for the first time.

    For France and South Africa, you can define rules to generate a creation number for the draft credit note, which is replaced by a final number when you post the credit note.

    Otherwise, enter the number manually.

  2. You can edit the credit note date and the bill-to address, if needed.
  3. Enter the credit note payment due date.
  4. You can enter the credit note reason.
  5. On each line, you can edit the quantity to credit and prices.
    1. From the More actions menu, select Open line panel.
    2. Enter the quantity of items that need to be credited and modify prices if needed.

Manage the tax information

Tax related information is displayed on the Totals tab.

  • The first block displays the VAT amount, excluding VAT amount, and including VAT amount accumulated for all the credit note lines.
  • The Summary by tax block displays the total taxable base and amount, per tax and tax rate. For example:
    • All the credit note lines with the tax Normal rate collected on debits are summed on one line.
    • All the credit note lines with the tax Reduced rate deductible on debits are summed on another line.

  • The Amounts in company currency block displays the excluding and including VAT amounts in the company currency.

    The company is the company for the sales site.

Manage analytical dimensions

Dimensions and attributes are inherited from the sales invoice lines. You can modify the dimensions, or add dimensions if there are not any, for all lines. Or you can manage the dimensions on each line.

To manage dimensions for all lines:

  1. From the More actions menu at record level, select Set dimensions.
  2. Select Apply to all lines to apply those new settings to all the existing and future lines or Apply to new lines only to apply those new settings to future lines only.

To manage dimensions for individual lines:

  1. From the More actions icon on the line, select Dimensions.
  2. Select the dimensions you want for the line.
  3. Save.
Dimensions apply to lines as long as the document is not posted.

Options on the lines

The Lines grid displays the main information for the sales credit note lines.

To view all the details for a line, from the More actions icon, select Open line panel. In this panel, you can view general information about the line and details about the quantities. There is a link to the sales return request or invoice record.

You can edit a line when the credit note status is Draft.

After the credit note is posted, you cannot delete lines.

To delete a line, from the More actions menu select Delete.

    You can manage the line analytical dimensions when the credit note status is Draft.

  1. From the More actions icon, select Dimensions.
  2. Enter the necessary information in the Dimensions panel and select OK.

    You can modify the tax for a category in case of a particular context for a line.

  1. From the More actions icon, select Tax details.
  2. Edit the tax and select OK.

Add notes

You can manage internal and customer notes on a sales credit note at the document or line level, or both.

Internal notes are notes you want to share with your colleagues. Customers never see these notes. There are for internal purposes only. But you can add notes in the Customer notes text box. These notes display on the PDF sales credit note for the customer's information.

You can manage notes at the document level from the Notes tab.

If Add notes to customer document is switched on, the customer notes print on the last page of the PDF credit note.

  • Repeated from the sales invoice

    When the sales credit note is created from a sales invoice, the invoice notes are repeated on the credit note if Repeat the document notes on new documents. is switched on for the invoice.

    You can still update notes repeated from the invoice if needed.

  • Repeated from a sales return request

    When the sales credit note is created from a sales return request, the return request notes are repeated on the credit note if Repeat the document notes on new documents. is switched on for the return request.

    You can still update notes repeated from the return request if needed.

You can manage notes for a line from the Line notes tab of the line detail panel.

If Add notes to customer document is switched on, the customer notes added for a line print under the corresponding line on the PDF sales credit note.

  • Repeated from the sales invoice

    When the sales credit note is created from an invoice, the invoice line notes are repeated on the corresponding credit note lines if Repeat all the line notes on new documents. is switched on for the sales invoice.

    You can still update notes repeated from the invoice if needed.

  • Repeated from a sales return request

    When the sales credit note is created from a sales return request, the return request line notes are repeated on the corresponding credit note lines if Repeat all the line notes on new documents. is switched on for the return request.

    You can still update notes repeated from the return request if needed.

Post the sales credit note

After you enter all details, you need to select Post to start the posting.

The sales credit note status changes to Posting in progress.

  • If there are posting errors, the credit note status changes to Error. You can go to the Posting tab and refer to the diagnoses to learn more about the errors.
  • If there's no error, the credit note status changes to Posted.

Print a sales credit note

You can print the draft credit note or the credit note when it is posted.

  1. Select Print.

  2. You can print or download the PDF document.

    The Printed checkbox on the Information tab is selected when you print a posted credit note. There's no indication for a draft credit note being printed.

Send the sales credit note

You can use the automatic email sending system to send a posted sales credit note to the customer or any recipient.

  1. Select Send.

  2. Enter the recipient information.

  3. Select Send again.

    The email with the PDF document is automatically sent to your recipient.

    The Sent checkbox on the Information tab is selected when you send the posted credit note to a recipient through the automatic email sending system. If you send the printed document by email and not by using the automatic email sending system, the Sent checkbox is not selected.

Edit a sales credit note

When the credit note is at status Draft, you can edit some fields at document and line level.

You cannot add lines directly to the grid. Lines come from an invoice or a return request.

You can no longer edit a credit note when it's posted.

Delete a sales credit note

You can delete a sales credit note that is not yet posted.

Working with sales credit notes

What is the difference between the credit note number and the creation number?

What is the difference between the credit note number and the creation number?

When you create the credit note, the values in the Number field and in the Creation number field are the same. This number remains the same when you post the invoice, except for some legislations that have specific legal requirements. For example, according to the French and the South African legislations, sales credit notes need to have a chronological and sequential number when they are posted. To manage this requirement, you need to assign two sequence numbers to the credit note type document. The first one is used when you create the credit note, to generate the number displayed in the Creation number field. This number is also displayed in the document Number field until you post the credit note. When you post the credit note, the second sequence number is used to generate the final credit note number displayed in the Number field. The original number always remains in the Creation number field. Refer to the Sequence number assignment documentation for detailed information.