Customer credit note

Customer Credit Note

SPM documentation (v3.0.0.7)- Updated October 25th 2010

Introduction

Customer Credit Note is generated from a Customer Invoice or from Subsidiary Invoice.

Once created, a credit note is always linked to an invoice.

If invoice is deleted, credit note is deleted.

If invoice's content is deleted, credit note content is deleted.

In almost cases, credit note is very similar to an invoice except :

• Credit Note compute only selected lines
• Credit Note must be populated with a negative total price.

To obtain negative price there are only two cases

1. Credit a negative quantity

       OR

2. Credit a negative price

The "Cancel" feature

Only a Credit Note, with a line ticked and with a negative quantity will enable to CANCEL the invoice.

This feature is very important because CANCELED lines will be able to be invoiced another time.

With the Credit Note CANCEL feature the invoice rule become :

An item can be invoiced only one time except if the invoice has been canceled by a Credit Note with a negative quantity.

When canceled a line may be invoiced another time.

So, as described in the Invoice, a line can be invoiced only one time... Except if the invoice line is canceled with a Credit Note.

The cancel feature don't take care of invoiced quantities.

The characteristics of a credit note PN line are always the same of the invoice side.

How to close/settle a Credit Note ?

A Credit Note works exactly like an invoice.

As explained in the Invoice statuses topic, an invoice may reach the closed/settled status only when receiving and allocating payment(s).

Credit Note works identically :

To close/settle a Credit Note, a Payment have to be allocated.

The Payment may be used to refund the Customer. In this case, the Payment amount will be a negative value.

or

The Payment may be used to pay an invoice. In this case, the credit note and the invoice have to be added together into a payment. The payment balance may be equal to zero or be grater than zero. In this last case, this credit will be able to be used in the next invoice ! (see Invoice/Available payment)

See also - Accounting features -  Customer Invoice - Subsidiary Invoice - Payment -

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