When trying to create a new Credit Note, only the Customers’ drop down list appears. is Credit Notes only affect the customers (Receivables) accounts in manager?
This is normal accounting practice.
Customers: Sales Invoice & Credit Note affect Accounts Receivable
Suppliers: Purchase Invoice & Debit Note affect Accounts Payable
yes I know, but in some circumstances Credit Note may affect Accounts Payable isn’t it
No, your supplier issues his credit note but this is a debit note in your accounts.
Although most people use the term “Credit Note” in this case, they are really talking about a Debit Note.
You can use negative figures in debit notes if you want the same effect as a credit note on a supplier account.
On a suppliers account
Purchase invoices increase the amount owing
Debit Notes decrease the amount owing
There is no need to use negative amounts.
I’m not sure what you are talking about when you say “Credit Note” on a supplier account - if you mean the “Credit Note” issued by the supplier, remember that for the supplier you are his customer, so if he is giving your back something, to him, he issues you with a Credit Note.
Really, in accounting there is no such thing as a Credit Note on a supplier’s account
I mean can I issue a credit note to a supplier for an adjustment, i.e. excess goods from him or less payment of mine? or vise versa for a customer…
Use debit notes to decrease a suppliers account balance.
Not sure I understand. Are you saying
- You ordered $ 400 (or whatever currency you use) worth of goods from a supplier
- He then delivered $ 500 worth of goods
- He invoices you for $ 500 - so you enter a purchase invoice of $ 500
- You pay $ 400 so there is a balance outstanding of $ 100
- You want to get a credit for this balance ie delete it?
- In that case, create a Debit Note for $ 100 on the supplier’s account which reduces the balance to zero.
Is that what you want ?
no, in point 3 in your scenario above, he invoiced me for 400 only
Get him to invoice you for the rest?
You can always create another purchase invoice (fictive) if you want to charge the other 100 to his account. Are you going to pay the extra 100 or not? If yes, then you will need an invoice of some sort to justify the payment
How do I create a credit note?
Read the Guide: Use credit notes for customer returns and refunds | Manager.