Generating a Purchase Credit Note

Generating a Purchase Credit Note

Sometimes it is necessary to provide the supplier with a credit note. The creation of a credit note is carried out through the Credit menu.

To generate a Purchase Credit Note:

1. Select Suppliers to the left of the main screen.

2. In the Purchases menu bar, select Credit option.

   When adding a new purchase credit note, the following screen will appear:

   

Image Description

The Purchase Credits screen in ABM. The title bar reads "Purchase Credit - 006 - Banks Hardware Suppliers." The toolbar at the top includes buttons for Save & New, Save & Close, Cancel, Open, Get a Purchase Requisition, Get a Purchase Order, Change Exchange Rate, Print in a Batch Later, and Purchase Actions. Below the toolbar are tabs for Header, Product Item, Text Item, Ledger Item, and Job Item. The Header section displays fields for Supplier Code (006), Supplier Details (Banks Hardware Suppliers address in Victoria 3121), Supplier ABN, GST Applies checkbox, All Prices dropdown, Our Order Number, Credit Number, Our Reference, and Credit Date (08/10/2014). Buttons for "Credit an Invoice" and "Add First Line Item" are visible. The lower portion contains a grid with columns for Code, Description, Quantity, Price, Discount, Exc GST, GST, and Inc GST. A Batch Total of 0.00 is shown at the bottom with running totals.

Purchase Credits

The Credit screen contains the following:

• Credit Header

• Product Item

• Text Item

• Ledger Item

• Job Item

  **Credit Header ** The first part of generating a credit note is to enter the basic details of the order into appropriate fields. These fields are:

• Supplier Code: Enter the unique identifying code for the supplier here. Alternatively, press F3 or click the button to the right of the field to select from the supplier list. To create a new supplier account, see Setting up Supplier Accounts.

• Supplier Details: Enter the name and address of the supplier here, as entered in the set up phase. Supplier details appear here when you enter the supplier code in the previous field.

• Supplier ABN: Enter the supplier's Tax registration number here (Australia only).

• All Prices: Choose an option from the drop-down list. If 'Exclude GST' is selected, then GST or Tax will be added to all prices entered.

• GST/VAT Applies: By default, this box is checked, indicating that the order is subject to Tax. If this is not the case, uncheck the box.

• Our Order Number: This field is set at 'New Order'. If you want to create the credit note from an existing order, then type the order number or press F3 to select from the list of outstanding orders. Otherwise leave as 'New Order'.

• Credit Number: Enter here the supplier's reference number, if any.

• Our Reference: By default, this is set to 'Next Sequential' and is greyed out.

• Credit Date: Enter the date on which the goods are credited. By default this field is set to today's date. Alternatively, press F3 or click the calendar to check the date.

• Credit an Invoice: Select this option to select an invoice which is to be fully or partially credited.

• Add First Line Item: Once all the details have been entered in the above fields, select this option to process the above entries and move on to the next section. The details appear on the grid below as they are entered.

  **Product Item **

• Product Code: Enter the code of this product for this sale. Press F3 or click the button to the right of the field to select from the list. If you know the barcode, type the barcode and it will automatically be recognised. By default the quantity is set to first unit of measure in the field to the right. You can select a different unit of measure if more than one unit of measure has been set up for that product. See Setting up a Product Account to set up a new unit of measure for the product.

• Description: Once the product code or barcode is entered, the description of the product, as entered in the set up phase appears.

• Qty. Credited: Enter the quantity credited at this time. Press F3 or click the calculator to type the quantity amount.

• Qty. Returned: Enter the quantity returned at this time. Press F3 or click the calculator to type the quantity amount.

• Location: Enter the start of the location name for this order, press F3 or click the button to select from the list. See Setting up a Stock Location for details on how to place your product in a location.

• Delivery: Enter the date on which the order is returned. By default this field is set to today's date. Alternatively, press F3 or click the calendar to change the date.

• Gross Amount ex. GST/VAT: Enter the amount being charged at this time, excluding Tax here. Press F3 or click the calculator to enter the quantity amount.

• Discount %: Enter the discount rate that applies to this product, if any. The default discount rate is set at 0.00%. To calculate the discount, press F3 or click the calculator.

• GST/VAT Code: By default, this box is set at 10% GST/VAT, indicating that the order is subject to Tax of 10%. If this is not the case, select an alternative entry from the drop-down list. To set up a new Tax category, see Setting up a Tax Category.

• GST/VAT Amount: Enter the Tax amount if different from the calculated figure. Press F3 or click the calculator to enter the amount.

• Update Selling Prices: Select this option to update and store the selling prices of the selected product based on is new cost.

• Cancel Item: Warning: Selecting this option cancels the entries made on this section.

• Next Item: Once all the details have been entered, select this option to process the entries and move to the next section. Note the details appear in the grid to the bottom of the screen.

  **Text Item **

• Block of Text: You can type unlimited text to describe a product in more detail. After you have entered your text, select 'Next Item' and the text appears in the 'Description' field of the grid. Note the details appear in the grid at the bottom of the screen.

  **Ledger Item **

• Account Code: Enter the appropriate ledger account code here. Press F3 or click the button to select an account code from the ledger list. See Adding a Ledger Account for details on how to set up a ledger account.

• Description: The description entered here appears on the printed document and on the ledger account history. .

• Qty. Credited: Enter the quantity credited at this time. Press F3 or click the calculator to calculate the quantity amount.

• Qty. Returned: Enter the quantity returned at this time. Press F3 or click the calculator to calculate the quantity amount.

• Gross Amount ex. GST/VAT: Enter the amount being charged at this time, excluding Tax here. Press F3 or by click the calculator to calculate the gross amount.

• GST/VAT Code: By default, this box is set at 10% GST/VAT, indicating that the order is subject to Tax of 10%. If this is not the case, select an alternative entry from the drop-down list. To set up a new Tax category, see Setting up a Tax Category.

• GST/VAT Amount: Enter the Tax amount if different from the calculated figure. Press F3 or click the calculator button to calculate the amount.

• Cancel Item: Warning: Selecting this option cancels the entries made on this section.

• Next Item: Once all the details have been entered, select this option to process the entries and move to the next section. Note the details appear in the grid at the bottom of the screen.

  Job Item

• Job Code: Enter the code of the job for this transaction. Press F3 or click the button to select from the list. To set up a job record, which includes a job code, see Adding Jobs.

• Stage: Select the stage at which the job is at (if any) by choosing from the drop-down list.

• Description: Once the job code is entered, the description of the job, as entered in the set up phase appears.

• Qty. Credited: Enter the quantity credited at this time. Press F3 or click the calculator to calculate the quantity amount.

• Qty Returned: Enter the quantity returned at this time. Press F3 or click the calculator to calculate the quantity amount

• Cost Centre: Enter the cost centre name here, i.e. Installation. Press F3 or click the button to select from the list. To set up a new cost centre, see Adding Cost Centres.

• Gross Amount ex. GST/VAT: Enter the amount being charged at this time, excluding Tax here. Press F3 or click the calculator to enter the quantity amount.

• GST/VAT Code: By default, this box is set at 10% GST/VAT, indicating that the order is subject to Tax of 10%. If this is not the case, select an alternative entry from the drop-down list. To set up a new Tax category, see Setting up a Tax Category.

• GST/VAT Amount: Enter the Tax amount if different from the calculated figure. Press F3 or click the calculator to enter the amount.

• Gross Charge ex. GST/VAT: Enter here the GST/VAT amount if it differs from the calculated figure. Press F3 or click the calculator to enter the amount.

• Cancel Item: Warning: Selecting this option cancels the entries made on this section.

• Next Item: Once all the details have been entered, select this option to add another item to the text line for this transaction. Note the details appear in grid at the bottom of the screen.

  Save Settings When you have entered the relevant order details, select either: Save and Close: This will process the information and bring you back to the main menu. or: Save and New: This will process the information and open a new 'Purchase Credits' screen.

  Back Order: When you process the credit a message will appear asking if you wish to put the returned items on back order. If you answer No to this question, then no back order will be created, and the quantity on the existing order (if selected from order) will be reduced.