# How to handle credit notes received from suppliers? **URL:** \ **Category:** Uncategorized\ **Created:** [March 4, 2014, 3:27pm UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573 "2014-03-04T15:27:02Z")\ **Posts on this page:** 13\ **Page:** 1
**Author:** ![daaaaniel](https://avatars.discourse-cdn.com/v4/letter/d/c37758/32.png) [@daaaaniel](https://forum.manager.io/u/daaaaniel)\ **Post date:** [March 4, 2014, 3:27pm UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/1 "2014-03-04T15:27:02Z")
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. ---
**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\ **Post date:** [March 4, 2014, 5:15pm UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/2 "2014-03-04T17:15:42Z")
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) ---
**Author:** ![daaaaniel](https://avatars.discourse-cdn.com/v4/letter/d/c37758/32.png) [@daaaaniel](https://forum.manager.io/u/daaaaniel)\ **Post date:** [March 4, 2014, 6:11pm UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/3 "2014-03-04T18:11:26Z")
thank you for your quick answer… what to do with refund to my bank account?.. Should I just use button “receive refund from supplier”? ---
**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\ **Post date:** [March 5, 2014, 4:57am UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/4 "2014-03-05T04:57:34Z")
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. ---
**Author:** ![daaaaniel](https://avatars.discourse-cdn.com/v4/letter/d/c37758/32.png) [@daaaaniel](https://forum.manager.io/u/daaaaniel)\ **Post date:** [March 5, 2014, 12:37pm UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/5 "2014-03-05T12:37:04Z")
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. ---
**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\ **Post date:** [March 5, 2014, 1:38pm UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/6 "2014-03-05T13:38:26Z")
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. ---
**Author:** ![daaaaniel](https://avatars.discourse-cdn.com/v4/letter/d/c37758/32.png) [@daaaaniel](https://forum.manager.io/u/daaaaniel)\ **Post date:** [March 18, 2014, 1:22pm UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/7 "2014-03-18T13:22:18Z")
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? ---
**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\ **Post date:** [March 20, 2014, 2:40pm UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/8 "2014-03-20T14:40:46Z")
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. ---
**Author:** ![mvnclv](https://avatars.discourse-cdn.com/v4/letter/m/b782af/32.png) [@mvnclv](https://forum.manager.io/u/mvnclv)\ **Post date:** [April 3, 2014, 11:09pm UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/9 "2014-04-03T23:09:21Z")
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? ---
**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\ **Post date:** [April 4, 2014, 1:02am UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/10 "2014-04-04T01:02:26Z")
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. ---
**Author:** ![mvnclv](https://avatars.discourse-cdn.com/v4/letter/m/b782af/32.png) [@mvnclv](https://forum.manager.io/u/mvnclv)\ **Post date:** [April 4, 2014, 2:25am UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/11 "2014-04-04T02:25:51Z")
Got it, Thank You! ---
**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\ **Post date:** [July 22, 2014, 5:58pm UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/12 "2014-07-22T17:58:57Z")
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. ---
**Author:** ![Ealfardan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/ealfardan/32/63166_2.png) [@Ealfardan](https://forum.manager.io/u/Ealfardan)\ **Post date:** [January 18, 2023, 3:40pm UTC](https://forum.manager.io/t/how-to-handle-credit-notes-received-from-suppliers/573/13 "2023-01-18T15:40:43Z")