Allocating Credit Notes

Credit notes can be allocated against reference transactions at the point of sale or they can be allocated later by a special facility. When a Credit Note document is entered into the system you are provided with fields for specifying the reference type and reference transaction code. By entering a valid reference into these fields the credit note will automatically receive the same age and be posted as part of the transaction set for the reference transaction. In addition where the reference is an invoice and the original invoice is accessible the system allows the copying of the invoice details including line items to the credit note.

If the Credit Note is not allocated or if the reference cannot be located then the credit note is created as a Reference transaction. Provided no postings are made against the Credit Note transaction (such as journals), you can pick up this credit note using the Credit Allocation screen and allocate it against one of the available transaction sets.

The Credit Allocation screen allows you to step through Credit Notes (usually limited to the unallocated ones) and select a transaction set for the Credit Note to be posted against. The suggestion button provided will locate the nearest matching transaction set in the following manner:

• It searches the oldest transaction sets first.

• It looks for transactions sets whose balances are closest to the credit note.

• If more than one transaction set has a similar balance then it will compare cost prices, etc.

When a credit note is allocated in this manner it ceases to be a transaction set in its own right and becomes a child of the transaction set that has been selected.