Steps to Create a Credit Note
Click Inventory in the left side menu and select Purchase Orders to open the Purchase Order List.
Find the order to credit by using the filters or searching for the order number.
Click the tick box to the left of the order you intend to credit, then click New Credit Note.
Note: You can only credit a finalised Purchase Order
This opens the New Credit Note screen, shown below:
Enter a Reference into the field provided
You can edit the Credit Note Date in the date field provided
Select the line item(s) you wish to credit by using the tick box beside each line, or you can select all lines by using the tick box in the header row, to the left of the Part No/Code heading.
Note - you can only generate a credit for the full qty of each line, if the line item you select from the purchase order has a qty of 5, the credit note will also have a quantity of 5.
You can add notes regarding the credit in the Notes field provided.
Click Create to create the Credit Note.
This creates the credit note with the status Request for Credit, meaning the credit has been requested with the supplier. However, it is not finalised until you proceed with the next step to finalise the return.
📝Note: Credit notes are created with a Purchase Order Number starting with "CN –" followed by the original purchase order number, followed by a number that increases if there is more than one credit note for a single purchase order, e.g. "CN – PO 9 – 2" would be the second credit created for Purchase Order "PO 9".
Credit Note created from Within a Job
If you 'remove' an ordered part from a Job or Invoice, you will see the following notification providing a Return to Stock button, if you wish to either return the part to stock; or an Add Credit Note to create a Credit Note for the part:
💡 Rounding Adjustment for Credit Notes
You can adjust the total credit amount by 1c to match supplier credit notes
Click the dollar value in the Total Credit field to open the rounding popup
Click −0.01 or +0.01 to adjust the total by 1c
Click outside the popup to close it
Status rules: Rounding adjustments can be made while the credit note is in Request for Credit
Once you click Credit Fulfilled, the credit note is finalised and can no longer be adjusted
Rounding Adjustment Line in Xero: Credit notes post to Xero immediately, and any rounding adjustment appears as an additional line on the Xero supplier credit note
Finalising the Return/Credit Note
Open the credit note in the Request for Credit state in the Purchase Orders list.
You still have an opportunity to alter the date of the credit note and add/edit the notes.
Click the Credit Fulfilled button to finalise the credit note.
If the Purchase Order was for Stock
The Quantity on Hand for the part(s) will be reduced.
The part(s) history will be updated to include a record of this return.
📝Note: If you are crediting a part on an order for a specific job that has not yet been invoiced, the part line item will be removed from the job. If the job has already been invoiced, it will not be removed from the job.