Supplier Credit and Debit notes
If using the Invoice accounting basis use debit and credit notes to adjust debtor's and creditor's invoices.
Each note must be linked to an invoice.
If you receive a credit note covering multiple invoices split it based on the invoices it relates to. That makes sure invoices are not reported as over or under paid.
For example if one invoice is for $1000, and another is for $2000, and the credit note is for $1500, ($1000 for the first and $500 for the second invoice) enter it as two credit notes linked to the correct invoice. If credit is attached to the $2000 invoice your records will show the $1000 invoice is still a debt as no payment is to be entered for it.
The same applies for debit notes.
Credit and debit notes result in an adjustment to G.S.T. in the period they are received, not the date of the invoice they relate to. Unless they are received in the same period as the invoice. When you enter the note the G.S.T. adjustment is calculated and displayed.
Adding and Editing Credit and Debit Notes
There are two credit/debit forms.
1. Allows the entry of credit/debit notes for invoices of a selected supplier. This starts from the Supplier's Operations form by clicking the Credit/Debits button. It displays all invoices of the supplier displayed on that form. To switch suppliers return to the supplier control form and select the relevant supplier.
Display the relevant invoice in the invoice panel. All lines for that invoice display in the grid below that panel.
The Credit/Debit button defaults to Credit. Select Debit if relevant.
Enter the date, amount and a narrative for the note.
The date is used to set which G.S.T. imputation period the note applies to. Make sure it is for a period that has not been run if you are using the Invoice accounting basis. Otherwise the note is purely for accounting purposes.
2. Activate from the Supplier charges form. Allows the entry of a credit/debit note relating to a selected invoice of the Supplier displayed on form.
This form is in add mode when it is activated. The amount of the charge for the selected invoice displays in the Supplier charge field. The default is to add a credit note.
To view all credit/debits notes for a supplier click the View Credits/Debits button on the supplier's control or the supplier charges form.