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How to create and manage vendor credit notes

Created on  | Last modified on 

Summary

How to create and manage vendor credit notes from bills or as stand-alone in Sage Accounting.

Description

Return goods or cancel a bill by creating a credit note from the original bill. Create a stand-alone credit note and allocate it to outstanding bills later.

Before creating a credit note, ensure you have a contact record for your vendor. Regularly purchase the same products? Create records for these products.

Resolution

To create a vendor credit note from a bill

The credit note appears with the same details as the original bill.

  1. Go to Expenses and click Vendor Bills.
  2. Click the bill you want to credit.
  3. Click Add Credit Note.
  4. Change the details if necessary. 
     NOTE: The credit note total appears at the bottom.

  5. If this is a draft credit note, select the Save as draft check box.
  6. Enter any notes if required.
  7. Click Save.

If the credit note covers the full bill value, the status appears as Paid; otherwise, it appears as Part Paid.

To record a stand-alone vendor credit note

  1. Go to Expenses and click Vendor Bills or Vendor Credit Notes.
  2. Click New Credit Note.
  3. Enter the following information:
    • Vendor: Enter the vendor name. Select from the list that appears
      • To add a new vendor, click Add a vendor, enter the information and click Save
    • Credit Date: Enter the credit note date
    • Vendor Reference: Enter a reference such as the credit note number
    • Reference: Enter any additional references or details
    • Product: Enter the product name in the Search for Product field and choose the product
      • To add a new product, click Add product, enter the information and click Save
    • Description: The description for the credit, for example the items originally purchased
    • Ledger Account: Choose the ledger account
    • Qty/Hrs: Enter the quantity of items the credit is for
    • Price/Rate: Enter the net value of the credit
    • Total: The total gross value
  4. If you’ve created transaction analysis types, for example departments, click the Finder (arrows icon, to the right) and choose the relevant analysis category.
     NOTE: To save as a draft, select the Save as draft check box. When ready to update ledgers, open the draft credit note, make changes, and clear the Save as draft check box
  5. Enter any notes if required.
  6. To attach a file, click the Attachment button, click Upload files, browse to and double-click the file.
  7. Click Save.

The credit note remains outstanding until allocated to a bill or refunded by the vendor.

To manage an existing credit note

  1. Go to Expenses and click Vendor Credit Notes.
  2. Click the required credit note.
    • If stand-alone, edit the information. Follow the previous section's instructions. If allocated to another transaction, you can't change it.

Note: You can record a refund or change the status to Set as Disputed. Disputed values remain in your accounts. To clear the dispute status, click More and then Clear Dispute.