Credit Notes

The accounting age that a credit note is processed against is dictated by the reference that the Credit Note is allocated against. If a credit note is entered in reference to an invoice that is 60 days old at the time that the Credit Note is processed then the Credit Note will be processed against the 60 day balances regardless of any period selected by the user when the document was input.

Credit Notes act as a reverse form of invoices. They reduce a customers account balance and can be allocated against invoices or other debit entries in the customers accounts. As explained for cash refunds where goods are not resaleable a credit note should be entered as an adjustment. Price adjustments may also be entered with a zero quantity as described for Cash Refunds.

Acumen records transactions in sets (see Transactions) and will not remove a transaction until the set it belongs to balances to zero. Because of this fact it is necessary to allocate credit notes against other transactions so that the balance can eventually become zero. If the reference for a Credit Note is unknown at the time of input then the Credit Allocation facility can be used to pick up the Credit Note at a later time and allocate it against a likely reference. See the Allocating Credit Notes for more details on this facility.

Full credit of an invoice can be easily achieved by entering the invoice code as the reference on a new Credit Note. Provided the original invoice can be located by the station the credit is being entered on the system will offer to load all the details (including line items) from the original invoice to the credit note.