Credit Note
Credit note - is a document issued by a seller to reduce the amount that a customer owes from a previously issued invoice. It is created in the event of a product return, an invoice error, damaged products, and so on.
Note: You can create a credit note only based on an invoice, not on other sales documents.
Credit note is created to reverse accounting and inventory transactions made by an invoice.
Note: For legal reasons, it is not advisable to delete or change the invoice that has been sent to customers or has been paid, even if critical errors have been detected in it or the goods have been returned. You must create the credit note to clear such invoice.
The credit note partially or completely reverses the transactions induced by the invoice affecting the transaction journal, the profitability journal, the VAT journal (if your company is a VAT-payer), the inventory journal, and the customers journal. Credit note corrects the inventory quantities and monetary values. The inventory is increased by the number of goods specified in the credit note by debiting the inventory account. The credit note debits the values in the income account and if your company is a VAT-payer, in the output VAT account; the liability account is credited by the same amount (by total amount). The value in the COGS account is amended.
To go to the Credit Note
1.On the Codejig ERP Main menu, click the Sales tab.
2.Under the SALES tab, click Credit Note.
Note: Codejig ERP also enables you to create the credit note directly from the invoice.
To create the credit note from the invoice
1.Open the invoice for which you want to create the credit note.
2.Click the plus icon near the name of the document.
3. In the Actions Menu select Create - Credit note.
The credit note will be created and its fields will be populated from the invoice fields. However, you can edit and modify values in the fields if, for example, a customer has made a partial return or the total amount of the returned goods differs from their original total amount.
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