Enter a Credit Note

To enter a credit note:

  1. Create a new sales invoice. ClosedHow?
      1. In the Home window, click Customers & Sales on the navigation pane.
      2. In the Tasks pane, right-click the Sales Invoices icon and select Create Invoice from the menu.
  2. In the Payment Method box, select Pay Later from the list.
  3. In the Customer box select or enter the customer name.
  4. In the Invoice No.box, enter CN for credit note, and a number, if you want.
  5. Accept the date displayed. Do not use the date of the original invoice unless the goods were returned the same day.
  6. The next step depends on the type of item being returned or the type of service fee being refunded:

ClosedAn item that you track in Sage 50 Accounting and that you can sell again

  1. Enter the item number.
  2. In the Quantity box, enter a quantity, preceded by a minus sign.

ClosedAn item that you track in Sage 50 Accounting and that you cannot sell again, or a service that you track in Sage 50 Accounting

  1. In the Quantity box, enter a quantity, preceded by a minus sign.
  2. Enter a description of the item in the Description box.
  3. In the Account box, select the expense account you use for writing off inventory and services, such as Adjustment Write-off.

ClosedAn item or service that you do not track in Sage 50 Accounting

  1. In the Quantity box, enter a quantity, preceded by a minus sign.
  2. Enter a description of the item in the Description box.
  3. In the Account box, select the expense account you use for writing off inventory, such as Adjustment Write-off.
  1. Select the tax code you used for the original invoice.
  2. If the original transaction included allocations to projects, click the Project Allocation button , and enter the project and the amount or percent to allocate. Then click OK to return to the invoice screen.
  3. In the Comments box, describe the reason for the refund.
  4. In the Terms box, remove any payment terms.
  5. If you want to print the credit note, choose Print from the File menu.
  6. Click either Process or Print & Process.

For inventory items, this transaction increases the inventory asset account, and decreases the Accounts Receivable, Cost of Goods Sold, and revenue accounts.

For non-inventory or service items, the program decreases Accounts Receivable and the revenue account you specified.