Maybe I’m doing something wrong, but I created a Credit Note, and referenced the correct invoice and amounts, but this didn’t affect the Bank Balance, I’ve temporarily manually added a placeholder transaction in order to get the bank to balance.
Shouldn’t the Credit Note automatically create a transaction entry?
As it should not. The older guides are clearer but it is also a general understanding of what Credit Notes are.
See https://www2.manager.io/guides/7425 and note that there is no bank transaction involved:
A credit note does not record actual payment of money to the customer, but only adjusts the customer’s balance in Accounts receivable . A credit note can be created regardless of whether the customer has yet paid for the goods or services.
Thanks, I was expecting the CN to create an entry to represent the compensation amount.
So, I take it, that this requires a manual entry to balance, i.e. for the Bank Reconciliation to balance
And that the CN is much like a Delivery Order, non-transactional?
No, definitely not. A credit note is certainly transactional in a financial sense; it is the reverse of a sales invoice. And, for completeness, by delivery order, I assume you mean delivery note. Manager has no delivery orders. A delivery note is also transactional, affecting status of inventory item quantities, though not affecting financial information.
I mentioned:
and from the Guide:
A credit note does not record actual payment of money to the customer
However if you read the preceding 2 opening sentences in the referred Guide then you would have noticed as also explained by @Tut that it is definitely transactional but not with bank or cash, ie but with:
A credit note records the return of goods by a customer or a credit adjustment (refund) to a customer’s account for goods or services previously invoiced. It makes all necessary corrections to inventory and income accounts.
By the way @OCPL in January 2022 you asked the same but for Debit note and you got similar answers, see
