9.10. Credit Note Reevaluation

The "Credit Note" document is sent by a vendor which, following a sales transaction, offers the customer a discount. It is usually registered as a vendor invoice with negative value.

To operate a credit note in SocrateCloud, you first need to enter the corresponding vendor invoice after which the stock needs to be reevaluated.

Entering the Credit Note

The credit note is entered using the Invoice (Vendor) window located in The Procurement -> Vendor Invoice menu.

On the document master you need to enter the vendor and price list.

The document detail representing the credit note will contain the following values:

• Product = generic product used for credit notes:

  • Name = e.g "Credit Note for Reevaluation";

  • Product Type = Expense - entered using the Expense Type window. Details in Expenses;

• Quantity = "-1";

• Price = the credit note value (with +);

• Details in Entering an Invoice.

Once entered and completed, the invoice can be used for stock reevaluation.

Stock Reevaluation

The stock reevaluation consist of updating the stock entry price for the product to which the credit note applies:

• New Entry Price = (Total Product Cost - Credit Note Value) / On Hand Qty;

This is done by generating for all the on hand quantity, an internal use inventory and an internal material receipt using the new entry price.

In SocrateCloud, stock reevaluation is operated using the Credit Note Storage Reevaluation window from the Material Management menu. The following fields are available:

• Account Date - date at which the stock reevaluation is done;

• Document Type - a sub-type of the base document type: "Credit Note Storage Revaluation". Details in Document Types;

• Product - the product for which the stock reevaluation is done;

• Invoice, Invoice line - select the invoice and line which represents the credit note;

• Price List - will be used on the internal inventory receipt;

• Charge - used to determine the account used for posting the generated internal use inventory and internal material receipts;

Calculations section:

• On hand Quantity - current stock quantity of the reevaluated product;

• Cost Qty - product stock quantity according to the accounting schema;

• Credit Note Amt - the value of the vendor invoice line which represents the credit note;

• Initial Cost - total cost for the product;

• Adjusted Cost - resulting total cost after applying the credit note discount;

• Cost Price - unit cost obtained for the product after reevaluation;

• Currency - currency used on the document, determined by the selected price list;

Status section:

• Document Status - indicates the current status for the document;

  • Initial Status: "Drafted" - the document is being defined. Editing is allowed;

• Document Action button - used to change the document's' status. Available document actions are:

  • "Prepare" -> Document Status: "In Progress" - the document can be edited but cannot be deleted. The reevaluated product stock is reserved;

    • checks the document and stock for inconsistencies;

    • checks if all the document that affect stock have been posted;

    • reserves the existing stock;

  • "Complete" -> Document Status: "Completed" - the document has generated its effects within the system. Editing is no longer allowed;

    • generates internal material use and receipt documents;

  • "Void" -> Document Status: "Voided" - the document effects within the system have been cancelled;

    • if the document is "Completed", all the generated internal material use and receipt documents will be voided individually;

    • if the document is "In Progress", voiding will cancel the stock reservation and inactivate the document;

  • "Close" -> Document Status: "Closed" - no other document action can be applied. Documents cannot be generated based on this document. A document can only be closed if it has no unprocessed documents associated.

• Processed - the document has generated its effects within the system. Editing is no longer allowed;

Internal Use Inventory tab - displays the internal use inventory generated after processing the reevaluation:

• Product - the reevaluated product;

• Qty - on hand stock quantity for the reevaluated product;

• Charge - charge selected in the Inventory Use Charge field;

Internal Material Receipt tab - displays the internal material receipt generated after processing the reevaluation:

• Product - the reevaluated product;

• Qty - available stock for the reevaluated product;

• Charge - charge selected in the Inventory receipt Charge field;

• Price - the reevaluated entry price:

  • New Entry Price = (Total Product Cost - Credit Note Value) / On hand Qty