Setup Example – Customer Credit Notes
- Customer Credit Notes are issued when customers are given a discount or price reduction after an invoice has been finalised. They are also issued when customers return goods.
- Manually created credit notes can include pre-created items that have selling prices, or custom entries.
- For custom entries, the person creating the credit note must enter the description and prices.
- Typically credit notes are copied from customer invoices to ensure the same accounts are debited and credited.
Header
- Description: Customer Credit Notes
- Code: CC
- Entities: All
Settings (tab)
- This section lists the compulsory and optional settings that can be used to customise Customer Credit Notes.
- Settings with Default as part of the name, can be changed when capturing a transaction.
| Field | Description | Value | When required |
|---|---|---|---|
| Accounting > Currencies | Field to select which currencies apply to the transaction type. The options are: – Local: The transaction type can only use the local currency. – Company Currency: The transaction type can use the customer or supplier’s currencies. – All: The transaction type can use all the currencies set up for the organisation. | Company Currency | If customers are invoiced in multiple currencies. |
| Accounting > Credit Type | A dropdown list of Account Types for users to select one. The options are: – Customer – Supplier – Ledger | Customers | Always |
| Accounting > Debit Type | A dropdown list of Account Types for users to select one. The options are: – Customer – Supplier – Ledger | Ledger | Always |
| Accounting > Default – VAT Category (Input/Output) | Select a VAT Category from these options: – N/A – Output + (e.g. Customer Invoices) – Output – (e.g. Customer Credit Notes) – Input + (e.g. Supplier Invoices) – Input – (e.g. Supplier Debit Notes) | Output – | Always if you are registered for VAT. |
| Accounting > Default – VAT Type | Select a default VAT Type for the transaction type from a dropdown list of all the created VAT types. | Select the Standard VAT Type. | Always if you are registered for VAT. |
| Accounting > Enable Accounting | A checkbox. If checked, accounting is enabled. If unchecked, transactions are created in the module and not posted to the Ledger. | Check the checkbox. | Always |
| Defaults > Default – Data Filter | The default display when a list of transactions for the transaction type is viewed (e.g. This Month, Pending). | Select an option from the dropdown list. | The default value is Pending & Active. Add this setting if you want a different default filter. |
| General > Add Items from the following Categories | This action adds items from the selected categories. Click Edit in the value column and select the categories. | Click Edit. Move the categories from the Available to the Selected section to include them. Move the categories from the Selected to the Available section to exclude them. | If you create credit notes manually (as opposed to copying them from invoices) and you want to limit the categories that can be used. |
| General > Add to Followers | A dropdown list of Follower options. Multiple categories can be selected: – N/A (automatically appears if no selection is made) – Contact (Transactions) – Contact (Accounts) – Rep – Assign To – User | Check all the checkboxes that apply. | Applicable if you email credit notes. Followers must be entered as Contacts or Users and have email addresses. |
| General > Contact Lookup | A dropdown list to select which Contact fields should be included when selecting a contact for a transaction. The options are: – Name – Name (Position) – Name (Location) – Name (Position & Location) | Select an option from the dropdown list. | Add the setting if you want to select the contact by Position or Location. |
| General > Enable Assets | Checkbox. If checked a dropdown list of Assets becomes available for users to select one. | Check the checkbox. | Add the setting if assets are used to generate income (e.g. you service or repair assets for customers). |
| General > Enable Company | Users can select an access option as follows: – N/A – Customers (All) – Customers (Active) – Suppliers (All) – Suppliers (Active) | Customers (All) | Always |
| General > Enable NCR (Problem) | Checkbox. If checked, transactions can be marked as problem transactions for NCR purposes. | Check the checkbox. | If you use the NCR features. For example, if there was a problem with an order and you will issue a credit note for it. This feature helps you track the costs associated with the mistake. |
| General > Enable Staff | Allows an organisation to assign transactions: – None: Transactions are not assigned. – All: Transactions can be assigned to Users, and a Rep can be selected. – Rep: Transactions can only be linked to a Rep. – Assign To: Transactions can only be assigned to a User. | Select an option from the dropdown list. | Add the setting to allocate the invoice to a rep, staff member, or both. |
| General > Reference Lookup | A field to type Reference lookup lists. | Click the Value column. Type a reference one entry per line. Check Auto Height to show the full list. | If you create credit notes manually and you want staff to select a reference instead of typing one. If customer invoices are copied, the reference field is also copied. |
| General > Transaction Number | Specifies how transaction numbers are allocated when the transaction type is first created. The options are: – Edit: Allows users to edit/enter numbers only (e.g. for supplier invoices). A warning is displayed on the red warning bar if a duplicate transaction number is entered. – Generate: The system automatically generates numbers in sequence. – Generate (Entity): The system automatically generates numbers in sequence for each entity. | Generate (Entity) | Add this setting if you use multiple entities that each have their own VAT registration numbers. |
| Transaction Items > Enable Adding Items | Allows users to specify which type of items can be added to a transaction. The options are: – None: No items are added, only the header information is displayed. This option should be used sparingly and not for accounting transactions because there will be no fields for amounts. – All: Users may add items and custom items. – Custom: Users my only add custom items. Typically used for ledger transactions. – Items: Users may only add items. They may not add custom items. Typically used for Invoicing, credit and debit notes. All the buttons to add items are still displayed. The features that are disabled return an error message if clicked. | Select All, Custom, or Items. | If you create credit notes manually (as opposed to copying them from invoices), you can add the setting to limit the items that can be added to a credit note. |
Statuses (tab)
- You may create an unlimited number of Statuses.
- However, there are only four Status Groups (Pending, Active, Complete, and Cancelled).
- The first status should allow editing.
- The final status should ideally not allow editing.
- If the setting Accounting > Enable Accounting is checked, at least one status should have the Accounting column checked.
- If Inventory is used, at least one status should have the Inventory column checked.
- If editing is allowed when the inventory or accounting columns are checked, any accounting or inventory reports should be considered provisional.
Categories (tab)
- Categories are used to sort records.
- The categories you choose should be meaningful to your business.
- Using categories is optional but recommended.
- Categories can be copied from another transaction type. The existing categories are replaced by the copied categories.
Copy Rules (tab)
- Copy Rules determine the circumstances under which transactions may be copied.
- Although there are two transactions involved in the copy, you only need to create one copy rule.
- User access must be set for each copy rule.
- You can automate copying transactions by selecting a Trigger status.
- Columns that were hidden in the screenshot were left blank or unchecked.
Output Templates (tab)
- Output templates are the forms you need to print, preview or email a transaction (e.g. invoices).
- Default templates are included which will automatically include your company name, logo, and bank details as filled in on the Output tab of a registered Entity.
- You may edit these templates to include or exclude information.
- You may also create your own forms and templates from scratch.
