How to handle credit notes received from suppliers?

I have received Credit Note from supplier. I don’t want to create new Credit Note for someone but keep records about Credit Notes received from suppliers and refunds linked to them. Thanks.

To record credit note from supplier (which is actually debit note from your point of view), you will need to go to Journal Entries tab.

You will need to make following entry. Let’s say credit note from supplier is for $100 telephone expense.

Credit Telephone expense account with 100
Debit Supplier advance payment account with 100 (you will need to select name of supplier too)

If credit note is for purchase invoice you haven’t paid yet, then record journal entry like this:

Credit Telephone expense account with 100
Debit Accounts payable account with 100 (you will need to select unpaid purchase invoice)

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thank you for your quick answer… what to do with refund to my bank account?.. Should I just use button “receive refund from supplier”?

If you receive $100 refund from supplier, you should allocate it now to Supplier advance payment account to clear out $100 credit.

All my answers are general and subject to various assumptions I’m making. If you describe what exactly has happened, I will be able to tell you how exactly to record those events in Manager.

What I was trying to say is that I have received Credit Note which I have to put into the Accounting Software also I have already received refund to my Bank Account. Credit Note is for returned Fan Extractor, Supplier credited my bank account £7.02. I am wondering how to record that transaction in “Manager”. I need to debit my ‘materials’ account, credit my ‘bank’ account and link it with my supplier.
…By the way… great piece of software.

If you have received credit note and refund at the same time, you don’t need to go through complexity of recording credit note and refund as two separate transactions.

I would just record it as single transaction, that is I would simply categorize refund transaction of £7.02 in your bank account to expense account which you have previously used to purchase fan extractor.

There is really nothing else required to do.

Supplier returned £100 to “Customer Credit Account” - so I didn’t receive money but credit to use in the future. I bought something and part of my invoice I paid from that customer credit and part from my bank account. How can I record it? What to do with (how to spend) amount £100 from “Supplier Advance Payments” in Manager?

First of all, when supplier gives you credit £100, you need to record this as a journal entry. You do it by debiting account Supplier advance payments by £100. You also need to credit the original expense account for which the refund was for by £100. So for example, if you were buying printing and stationary and now you are being refunded for it £100, you will credit Printing and stationary account.

This will decrease your Printing and stationary expense by £100 and increase your Supplier advance payments balance you have with supplier by £100.

Then in future, when you receive purchase invoice from supplier and supplier tells you they’ve already applied the credit on your invoice to you so you need to pay £100 less. Again, this non-cash transaction needs to be recorded by journal entry.

You will need to credit account Supplier advance payments by £100 and debit account Accounts payable by £100. This will basically clear the previous credit you had with supplier and will apply it to decrease balance of your purchase invoice.

I’m having trouble with a similar situation. I overpaid an invoice from my web host by seven cents. This will result as a $0.07 credit on my next invoice. I tried accounting for this in Manager by creating a journal entry crediting my Web Hosting account and debiting Supplier Advance Payments for my web host by $0.07. The supplier invoice still is pinned to the top of my purchase invoice screen and showing up as a credit under accounts payable.

Can you tell me what I’m missing?

Don’t credit your webhosting expense account, you have to credit purchase invoice which has $0.07 overpayment.

To credit purchase invoice, select account called Accounts payable then select purchase invoice with overpayment.

Got it, Thank You!

The latest version (14.7.30) now includes new Debit Notes tab which should be used to record credit notes from suppliers. So no need to resort to journal entries anymore.

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