Managing Credit Note Refund

This document explains what happens in the point of sale (POS) system and in M3 when a customer wants a cash refund of a credit note that has earlier been entered in the POS system.


A credit note refund is entered in the point of sale system. The customer is repaid in cash and a cash refund receipt is given to the customer. Sales information is uploaded to M3 via a point of sale interface. The general ledger is usually updated on a later occasion.

For more information on how to use a credit note as payment for another item, refer to Managing Cash Sales of Items in a Point of Sales System Integrated with M3.

The following files are updated:

Before you start

An accounting exception must be defined for transaction type 2000 (credit note refund) when you use accounting event OP20 and accounting type 120. Instead of accounting the payment to a sales account (such as 3010), it must be accounted to a liability account (such as 2420). A liability account is a balance account and it affects the balance sheet. A sales account is a profit/loss account and it affects the statement of income. In addition, the reference ID (OPREFE) and expiration date (OPDUDT) can be selected as values in the accounting string.

Follow these steps

  1. The customer asks for a refund on a POS credit note

    The customer asks for a cash refund of a credit note at the point of sale in the shop.

  2. Enter credit note information in the point of sale system

    The credit note information is entered in the point of sale system. The entered information is credit note value, reference number and expiration date.

  3. Create a refund receipt

    The refund is entered in the point of sale system and a cash refund receipt is created. The money and a cash refund receipt are given to the customer. A 2090 transaction is created when the money is repaid and the amount is rounded off according to standard practices.

    Cash Refund Receipt No. 123457

    Credit note No.

    Expiration date



    1002 20131231   500.00
        Subtotal 500.00
        To repay 500.00
        Change back 0.00
    VAT 0 %   VAT 0.00
  4. Upload sales information to M3

    After the refund is entered, it is uploaded to M3 through the point of sale application programming interface 'POS sales tickets interface' (OPS270MI). Two different transaction types are used:

    • Transaction type 2000=Credit note refund
    • Transaction type 2090=Payments.

    Note that stock levels will not be updated.

    The credit note's ID number is updated in the reference field in OPSALE. (See the table that follows.)

    The OPSALE sales ticket input file is updated as described in the following table:

    Transaction type Reference Expiration date Payment method VAT Amount
    2000 1002 20131231   0.00 500.00
    2090     Cash (CSH)   –500.00
  5. Update the general ledger

    The general ledger is updated in batch through 'POS Sales Ticket. Update' (OPS280). The 'Financial interface' parameter in (OPS280) must be selected before the batch is run.

    For the general ledger (FGLEDG), the following accounting events and accounting types are created:

    Accounting event Accounting type Amount Reference Expiration date Bank operation
    OP20 101 –500.00     45 (CSH)
    OP20 120 500.00 1002 20131231  

    Note that a bank operation is retrieved from the selected payment method.

    The credit note is accounted as a liability in the general ledger. The credit note's reference number and expiration date can be used in the accounting string to identify the transaction. When the credit note is used for repayment, the credit note is balanced against the earlier credit note record in the liability account. (See the table that follows.)

    Accounting string:

    Accounting dimension 1 2420 (account)
    Accounting dimension 2 1002 (credit note number)
    Accounting dimension 3 20121231 (expiration date)
    Amount 500.00
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