- To provide a way to remove stock from Inventory because it is going to be returned
to, or replaced by the Vendor.
The Vendor then provides a goods or monetary credit to your store for the value of the items. - OR to provide a way to track breakages and other miscellaneous events that occur during the normal store operations that result in stock being lost from Inventory.
- When the Credit Note is finalized to '$$ Credit', the system will look at that as Goods Returned and show a 'Returned' entry in the Period Activity report.
- When the Credit Note is finalized to 'Breakage', the system does not look at that
as returned, but just as a record of the shrinkage incurred when an item is lost
or damaged.
In other words, closing a Credit note to 'Breakage' provides a reconciliation list, as a reference only , stock is still deemed to be missing.
Sometimes, items will appear on the Vendor's invoice on delivery, but they are found to be missing or damaged as the delivery is received or after the truck has left.
Normally, the Vendor will be advised that the return will be made or the shortage has occured.
The Credit Notes module will print a credit note that will act as this advice.
The advice can be mailed/faxed/emailed or simply handed to the driver the next time they deliver.
Generating a Credit Note while Receiving Items.
To make a Credit Note from the Receivings module, at the time an item is received,
- Select an Invoice to Edit from the Vendors/Receivings Menu Option.
Then select the 'Items' Tab Option:
Select the line for the credit note on the Invoice Details section of the Received Invoice .
Select the 'Adjust' Tab option
Then simply enter the Pack or Case Quantity required for credit into the appropriate box as shown above. Include a reason for the shortage from the drop down list.
(Shortage reasons are set up using the Setup/Data Grouping/Stock-Customer menu.)
This time the program will enter the item on the same credit note as before.
It is not necessary to adjust the amount Billed for on the Invoice, or the amount in Inventory the program will make all necessary inventory adjustments necessary.
So for example, if 12 are in the Invoice and 5 are broken, keep the 12 on the original Invoice so that it balances with the billed amount, but put 5 in the Credit Qty Packs so that a Credit note for 5 Units is generated.
The program will then automatically set up a credit note that the Credit Note module can print.
To Find and print up the Credit note, check the Credit Note Finding and Printing help page.
Generating a Credit Note from the Credit Note form.
It will not always be possible or desired to create a Credit note from the receivings form.For instance it may be necessary to return damaged stock found after the Invoice has been received.
The Credit note form allows the creation of a new Credit Note.
- To do this choose 'Vendors/Credit Notes' from the main menu.
- The Credit Note entry form will then be displayed.
- To start a new credit note, click on the 'New' button at the top, left of the form.
- This will auto generate a number that is used as your credit note reference.
The form has a provision for a vendor's RMA (Returned Merchandise Authorization) number. - Enter the date the credit note is entered (defaults to today's date).
- Then enter the Invoice, Vendor, Store and Receiver details.
- Receivers are setup in the Employees/Manager-Security menu options.
- The credit note will also require shipping details and dates added.
- Once all the main credit information is added, click on the 'Save' button at the top of the form.
- You are then ready to add items to it.
See the section on 'Editing a Credit Note' for information on adding items to it.