Credit notes

If a customer returns part of the goods, or if you create invoice corrections, you or your business partner can create a credit note to correct the amount payable for an invoice. If you automatically process the invoices, LN automatically generates credit notes and assigns credit notes to invoices.

You can create credit notes for the transaction types of different categories, such as:

  • Sales Credit Notes
  • Purchase Credit Notes
  • Sales Invoices
  • Purchase Invoices

Credit notes are linked to invoices rather than to invoice lines. However, if you use payment schedules or receipts against shipments, you can assign credit notes to the payment schedule lines. For details, refer to To use payment schedules.

If you select open entries for payment or direct debit, LN searches for credit notes that you can apply to the open entries before you perform the payment or direct debit procedure.

Creating a credit note

To create a credit note in the Transactions (tfgld1101m000) session, select a transaction type that has one of these categories. To actually create the credit note, you can now start one of the following sessions:

  • Purchase Invoice Entry (tfacp2600m000)
  • Sales Invoices (tfacr1110s000)

If you use one of the transaction categories Sales Invoices or Purchase Invoices, you can create a credit note by entering a negative invoice amount.

Generating an overview of applied credit notes

If you reduce payments to a pay-to business partner by the amounts of existing credit notes, it can be unclear for the business partner which credit notes you used to reduce the payment amounts. This can lead to confusion and misunderstandings.

To solve this situation, you can create a report of the invoices, the credit notes linked to the invoices, and their amounts, for a selection of invoice-from business partners. You can send this report to your suppliers for information.

Use the Assigned Credit Notes Letter (tfacp4160m000) session to generate and print an overview of the credit notes and the related invoices. You can define the credit notes letter layout in the Assigned Credit Notes Layout (tfacp4161m000) session.

Credit notes in reports

A credit note amount is displayed as negative. If a credit note is linked to one or more invoices, the assigned amount of the credit note is deducted from the open invoice amount. The linked amount is then visible as a payment line.

The invoice amount that is displayed for an invoice to which a credit note is linked is the original invoice amount. The open invoice amount is the invoice amount minus the linked credit note amount. The linked credit note amount is visible as a payment line.

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