Raising Manual Credit Note

Hi
After a thorough search and checking the guide, I still cannot get my head around on raising a credit note.

I have a set of customers who will at the end of the month receive a target commission / incentive in the form of credit notes, which we intend to deduct from the customer’s outstanding (accounts receivable).

But when I raise a manual credit note I am not able to see it take effect in the customer outstanding. can someone help me on the approach please?

Thank you
Prem

I think there’s something wrong somewhere, because the system automatically deducts credit notes from invoices.

First, can you verify it’s not a date issue, then if it isn’t, can you share screenshots of your credit notes and also from where are you getting the receivable figures.

As long as you follow the Guide, https://www.manager.io/guides/7425, the credit will be applied to the customer’s account. Be aware, though, that if there are any unpaid sales invoices, the credit will automatically be applied to them.

I read the guides before posting this query, what i want to do is raise a credit note for 700 to the specific customer, my expectation as you say is to be deducted from the customer’s outstanding.

upon creation of the credit note, when i view the customer, the 700 has not taken effect

The customer statements transaction shows as the following

My intention is to raise a credit note and set it against the customer so it reduces the outstanding the customer is liable to pay
Please advice

Your problem is that you posted the credit note to Accounts receivable on the line item. This debits Accounts receivable. Meanwhile, selecting the customer credits Accounts receivable. So, as the statement shows, the two legs of the transaction offset one another.

Your credit note needs to be allocated to the same income account where sales from the customer are posted. You can demonstrate this for yourself in a test company by raising a sales invoice, then immediately copying it to a credit note and noticing the changes to various account balances.

Thank you Tut.