How to enter a purchase credit note

There are different methods for creating vendor credit notes. Some options depend on your Sage 50 Accounting product and if you have a service that plan that includes credit notes.

Use one of the following options to enter a purchase credit note:

Create a negative invoice

1. Go to Vendors & Purchases and right-click the Purchase Invoices icon.
2.  Select Invoices, then Create Invoice.
3. In the Vendor box, select or enter the vendor name.
4. In the Invoice No. box, enter CN for a credit note, and a number, if you want.
5. Enter a Date.
6. In the Item Number column, click the arrow icon to open the dropdown list and select an item or service.
7. In the Quantity box, enter a quantity, preceded by a minus sign.
8. Enter a description of the item in the Description box.
9. Select the tax code you used for the original invoice.
10. If the original transaction included allocations to projects, select Project Allocation. Enter the project and the amount or percent to allocate, then click OK to return to the invoice screen.
11. Click Process.

Enter a credit note from an existing invoice

 NOTE: This method requires the latest version of Sage 50 Premium or higher and an active support plan.

1. Go to Vendors & Purchases and right-click the Purchase Invoices icon.
2. Select Credit Note and then Create Credit Note.
3. In the Invoice No. box, enter an invoice number or use the finder to search for the invoice.
   • Sage 50 will auto fill the credit note with the vendor name, address, payment method, inventory location, project, payment terms and invoice line details
4. In the Quantity box, enter the quantity you’re returning.
5. (Optional) Add an amount in the Freight field.
6. (Optional) In the Comment box, describe the reason for the return.
7. Click Process.

Enter a credit note from scratch

 NOTE: This method requires the latest version of Sage 50 Premium or higher and an active support plan.

1. Go to Vendors & Purchases and right-click the Purchase Invoices icon.
2. Select Credit Note and then Create Credit Note.
3. In the Vendor box, select or enter the vendor name.
4. Select Pay Later from the Payment Method list, unless you’re receiving a refund immediately.
5. In the Credit Note No. box, enter a number after the prefix CN.
   • (Optional) Enter the Return Date
   • Enter the line details for the items being returned
6. (Optional) Add an amount in the Freight field.
   • (Optional) Enter or clear the Early Payment Terms
7. (Optional) In the Comment box, describe the reason for the return.
8. Click Process.

Enter a prepayment

1. Go to Vendors & Purchases and select Payments.
2. Select the vendor.
3. Select Payment, Enter Prepayments.
4. Enter the amount you’re giving the customer in the Prepayment Amount column.
5. Select Post / Process.

System-generated credit notes

When you reverse a paid invoice without reversing the payment first, the system auto-generates a credit note. In this case, remove or apply the system-generated credit note.