How to create and manage vendor credit notes

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

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. If you regularly purchase the same products, create records for these products.

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. Select the bill you want to credit.
3. Select Add Credit Note.
4. Change the details if necessary.
5. The credit note total appears at the bottom.
6. If this is a draft credit note, select the Save as draft checkbox.
7. Enter any notes if required.
8. Select 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. Select New Credit Note.
3. Enter the following information:
   

   Vendor	Enter the vendor name. Select from the list that appears. To add a new vendor, select Add a vendor, enter the information, and 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 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.
    
5. To attach a file, click the Attachment icon, click Upload files, browse to, and double-click the file.
   
   TIP:

   Select Save as draft to save the credit note, then clear it when you're ready to update the ledgers.

    
6. Select Save. You can also print this (in Accounting Standard and Plus only).
    
   
7. 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. Select the required credit note.

For stand‑alone credit notes, edit the information by following the instructions in the previous section. You can’t change a credit note allocated to another transaction.

 

How to add and manage contacts

Allocate credit notes and payments on account