Credit Notes are created to refund debtors (customers) if they return stock items or goods, or to correct incorrect Invoices, which have been updated (posted) to the ledger.

- They are entered in exactly the same way as Invoices, but the transactions are exactly the opposite as for Invoices. Credit Notes should only be used if you are trading in stock items and / or invoicing service items (labour, consulting fees, etc.) from your stock item code file.

- Credit Notes do not have to be issued if an Invoice for which a Credit Note needs to be issued, is not updated (posted) to the ledger. You may edit the original Invoice, before updating (posting) the Invoice to the ledger, in which case you need not create a Credit Note.

- In some cases, where the Invoice for which a Credit Note has to be issued, and the Invoice has already sent to the debtor (customer), and if it is not yet updated (posted) to the ledger, you should still issue a Credit Note for that debtor (customer). You have to decide, according to your circumstances, when to issue a Credit Note.

- These Credit Notes, including any newly created Credit Notes, may be edited before they are updated (posted) to the ledger.

- Credit Notes should also be issued for returns of items, sold in the Point-of-Sale Invoicing system, if payments have been processed.

To Create or Edit a Credit Note:

1. To access Credit Notes directly: Click on the down arrow of the Invoice icon, and select Credit Notes from the Sales Documents list. Alternatively, you may click on the Input→Documents→Credit Notes menu option.
   - Keyboard Access: Press the Alt+F5 keys, or press the Alt+I+D+C keys on your keyboard.
   To access Credit Notes indirectly: Press the Spacebar, or press the F6 key on your keyboard. You may also click on the Invoice icon.
   The Document Selection screen will be displayed.
   
   - Select Credit Notes in the Documents field, if Credit Notes is not displayed.
   
   - If you create a new Credit Note for the first time, no documents will be listed.
   
   - Once any documents have been created for the debtor (customer), the documents will be listed. You may then select a document (if not already updated (posted) to the ledger), and click on the Edit button to edit it, if necessary. You then need to proceed to step 5.
2. Click on the New button. The Debtor Accounts screen is displayed:
   
   
3. Select the Debtor Account for which you need to create the Credit Note.
4. Click on the New button. The Credit Note screen will be displayed for the selected Debtor Account.
   
   
5. Check that the correct Debtor (Customer) account is displayed in the title bar, as well as in the left bottom corner of the Invoice screen.
   - The available balance on the credit facilities will increase with this Credit Note. TurboCASH will automatically calculate the difference between the credit limit, and the current balance of your Debtors account.
   
   - If you have selected an existing Credit Note the details of the transactions will be displayed. You may add any new items, comments, change selling prices, select stock items and edit the quantities and discounts.
   
   
6. The document number for a new Credit Note will be displayed as NEW. TurboCASH will generate the Credit Note number, once the Credit Note is created.
   - If you select to edit the Credit Note the Invoice number for the selected Credit Note will be displayed. If you have selected to edit a Credit Note, please check that the correct selected Credit Note number is displayed.
   
   
7. Select and / or enter the applicable information for the transactions and / or comments in the following fields, if necessary:
   1. Your Reference - Enter the reference number as supplied by your Debtor, if available.
   2. Salesperson - The salesperson allocated on the Edit→Accounts→Debtor (General Information tab) or as selected on an Credit Note to be edited, will be displayed. If no Salesperson has been allocated to the specific Debtor, unallocated should be displayed.
      It is recommended that the same salesperson, as the one who created the original Invoice, should be selected on the Credit Note. The reason for this, is that Credit Notes will be reflected on the sales analysis reports (by salesperson options) for a salesperson who has not issued the original Invoice.
   3. Document Group 1 / Document Group 2 - You may select any of the available Document Reporting Groups, which you have created in the Setup→System Parameters→Groups menu option.
   4. Date - The current date in your system should be displayed. You may enter any other valid date, or select a date, using the date picker.
   5. Due Date - The due date will automatically be calculated by TurboCASH as the number of days entered in the Due Days field of the Edit→Accounts→Debtor (Accounting Information tab). If this field is left blank for the Debtor Account, or a value of (zero) 0 is entered, this due date will be the same as the date of the document.
   6. Postal Address - The address as entered on the Edit→Accounts→Debtor (General Information tab) for the specific Debtor will be displayed.
   7. Delivery Address - The address as entered on the Edit→Accounts→Debtor (Statements tab) for the specific Debtor will be displayed. You may also enter or over type the address in this field, if the delivery address is different.
   8. Message - The message you have entered in the Setup→System Parameters→Documents (Credit Notes tab) menu option will be displayed. You may enter or over type this message with another message for this specific Credit Note.
8. Select the applicable Stock Item, or Service Item, from the Stock Item lookup facility, and TurboCASH will automatically display the Item No., Description and Unit Amount in the applicable fields.
9. Enter the Quantity in the Ship fields.
   - TurboCASH will automatically calculate the amount for the number of items entered on the line. If you are registered for VAT/GST/Sales Tax, and VAT/GST/Sales Tax is applicable to the transactions, remember to check that the amounts reflect inclusive or exclusive of VAT/GST/Sales Tax correctly.
10. When the cursor is in the Unit Amount field the following screen, reflecting your three selling prices, is displayed:
    
    - If you use three different selling prices, the default selling price 1, 2 or 3 as selected on the Edit→Accounts→Debtor (Accounting Information tab) will be selected. You may select any other available selling price, for this Credit Note, if you wish.
    
11. Check that the prices and discounts (if any) are correct.
    - If you have entered any percentage for Customer Discount on the Edit→Accounts→Debtor (Accounting Information tab), and the Apply Invoice Discount field is selected on the Edit→Stock Items menu option for the selected stock item, the customer discount percentage for the selected debtor account will be displayed.
    You may over type the discount with a (zero) 0 percentage, if you do not wish to allow discount for this transaction. Note you may need to over type the discount with a (zero) 0 percentage or any other percentage, if any discount was allowed on the Invoice for which the Credit Note is created.
12. When you are finished with the Credit Note, click on the OK button. The following confirmation message is displayed (if you did not select (tick) the No Confirm print option (tick box) on the Setup→System Parameters→Stock Information menu option):
    
    
13. Click on the Yes button to print the document. The document will be printed to the output method, as displayed on the Document Selection screen.
    - If you click on the No button on the confirmation screen, you may print the Credit Note later in the Input→Documents→Print menu option, the Document Selection screen or on the Documents tab of the Edit→Accounts→Debtor menu option.
    - You may also re-print the Credit Note, whether it is updated (posted) to the ledger, or not, provided that the Credit Note is not deleted.
    
    
14. You may proceed to create or edit another Credit Note or another document, or you may click on the Close button on the Document Selection screen to close or exit the Documents facility.
    - You may need to use the speed buttons (icons) on the Document Entry screen to delete a transaction, insert a transaction, insert a comment, delete all the transactions in the Credit Note.
    
    - Once the Credit Note is correct, you may update (post) the Invoice to the ledger.
    
    - If a Credit Note is for some reason issued incorrectly, you may delete the Credit Note in the Edit→Delete→Documents menu option.

Credit Notes may be printed when you have finished creating and editing an Invoice in the Documents facility in the Input→Documents→Print menu option or on the Documents tab of the Edit→Accounts→Debtor menu option.

Printed Credit Notes may be edited, provided that they have not yet been updated (posted) to the ledger in the Input→Update Ledger menu option.

An example of a printed Credit Note, based on the default layout file, is as follows:

- The presentation and layout of the Credit Note may differ, if you have selected your own or any other layout file in the Document Selection screen, or on the Input→Documents→Print menu option.

- You may also select to print the company logo, instead of your address, on Credit Notes. If you select to print your company logo, make sure that your address and contact numbers are included in your logo.

Credit Notes consists basically of three sections, i.e. the heading, transaction details and the footer.

1. Header section - contains the details of your business, the postal and delivery addresses (if delivery address was entered) of the debtor (customer), the document number, date, number of pages, Tax reference number, and the reference number of the creditor for the transaction, and account number. The Exemption Reference number is the Tax number as entered on the Edit→Accounts→Debtor (Accounting Information tab).
2. Transaction section - contains the details of the transactions as selected, entered and edited in the Document Entry screen.
   It displays the code and description of the stock items returned from debtors (customers), any comments, any discounts, etc. If you are registered as a VAT/GST/Sales Tax vendor, and you have selected a Tax code, the VAT/GST/Sales Tax amounts for each item (Exclusive amount, Tax amount and the Inclusive amount), will be displayed.
   Finally the total for all the transactions is displayed at the end of this section.
3. Footer section - contains the message as entered on the Setup→System Parameters→Documents (Credit Notes tab) menu option and the Company and Tax registration numbers, if entered on the Setup→System Parameters→Company Info (Address tab) menu option. This section also includes a place for the name and signature of the person who accepts the Credit Note, and the date on which the Credit Note is accepted.

Documents may be updated (posted) as follows:

• Input→Update Ledger menu option.
• Auto-post documents on print - (To use this feature, you need to select it in the Setup→System Parameters→Documents menu option.)

When Credit Notes are updated (posted) to the ledger, it will automatically generate the Batch (Journal) transactions in the Batch Type selected on the Setup→System Parameters→Documents (Credit Notes tab) menu option. It will automatically create transactions in the following accounts:

1. Debtor’s Ledger (full total of the document - Including VAT/GST/Sales Tax)
   
   - It will -
   
   
   
   • Create the credit transaction in the individual Debtor Account for the full total (including VAT/GST/Sales Tax).
   • Update the credit limit (current balance and available balance) for the individual Debtor Account.
   • Update the Debtor’s Control Account in the General Ledger.
2. Sales Account (Selling Price - VAT/GST/Sales Tax Excluded)
   
   - It will create the debit transaction in the Sales Account for the selling price (excluding VAT/GST/Sales Tax). If you have selected more than one stock item, it will display the total for all stock items (quantity x selling price).
   
   
3. VAT/GST/Sales Tax - Accounts
   
   - It will -
   
   
   
   • Create the debit transaction for the VAT/GST/Sales Tax in the VAT/GST/Sales Tax Account or Tax Code.
   • Update the VAT/GST/Sales Tax Control Account.
     
4. Cost of Sales - Cost Price Transactions
   
   
   - It will -
   
   
   
   • Create a credit transaction to the Cost of Sales Account.
   • Create a debit transaction to the Stock Control Account.
   • Update all Stock Reports (Activity, Back-Order, Re-Order, Movement Summary and Listing).

Debits - Sales and Output Tax Accounts = Credits - Debtor’s Ledger
Debits - Stock Control Account = Credits - Cost of Sales Account

- The quantities on hand for the individual stock items will automatically be updated, when the stock item is selected on the document.