Supplier Credit Note Transaction Type

A Supplier Credit Note is used for any goods returned to a supplier or cancelled services.

This topic covers how to setup a Supplier Credit Note Transaction Type.

All of these fields and tabs are explained in detail in the Transaction Type topic, here.

What you'll find on this page

• Start here

• Transaction Types

• Items & Inventory

• Accounting Setup

Start here

1. Navigate to Setup > Transaction Types > Edit.

2. Click Add. A new record will appear at the bottom of the screen. You will note that some fields are auto-populated already.

Transaction Types

The defaults for Transaction Types only require a small amount of change. The only fields to change are:

1. Description - Enter 'Supplier Credit Note'.

2. Code - Enter 'SC'. This is the 'nickname' of the Transaction Type.

3. Contacts - Select Suppliers - All. This is so that users can create a Supplier Credit Note for all Suppliers.

4. Accounting - Check the box. This allows Supplier Credit Note transactions to debit or credit specific accounts.

Items & Inventory

As above, there is minimal change required here. More on Items & Inventory here.

• Resolve Items - Select 'Reserve'. This sets what Resolve is set by default for items on this transaction type. This is set to Reserve as you need to 'Issue' the items out of stock when it's returned to the Supplier. The Issue Transaction will reduce your current stock levels. This is the reverse of what a Purchase Order does to increase your stock levels.

Accounting Setup

Because this Transaction Type affects accounting, we need to setup which accounts are credited and debited by this Transaction Type.

Navigation

Navigate to Setup > Accounting > Transaction Types > Supplier Credit Note.

The only fields you need to change are the following:

1. VAT Type- Select 'Standard - 15%'

2. Dr Category- Select 'Payables' as you are debiting the Supplier Account.

3. Cr Category- Select 'Cost of Sales'. This determines what Account Category will be credited by default. This will then allow you to select one of your accounts from the Cost of Sales Category to be credited by default. Cost of Sales include Accounts like Purchases.

4. Cr Account - Select 'Purchases' as the default Credit Account. This specifies what account will be credited by this transaction. Users have the option to select an alternative Cost of Sales account in the Ledger.