Vendor Credit Notes

What is it and what is it for?

Each Vendor Credit Note states who granted it (the vendor or related party), the vendor's document reference, the currency and exchange rate, and the detail of items, services or ledger accounts that make up the credited amount. It can optionally reference the Affected Vendor Bill (the purchase the credit belongs to) and an already-approved Return Authorization, when the credit originates from a physical merchandise return.

Unlike voiding an entire bill, a Credit Note lets you correct just part of the billed amount — or record a later discount or return — without losing the original purchase's history.

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How to record a credit note, step by step

1. Open it from the list with New, or from the Details of the affected Vendor Bill (if your company allows it from there), so the vendor, currency and exchange rate are brought in automatically.
2. Confirm the general data. The vendor is required, and the reference (the number the vendor gave you for this credit) can't repeat for the same vendor and subsidiary. If your company uses multiple currencies, confirm the exchange rate (it must be greater than zero).
3. Link the affected bill if the credit corresponds to an already-recorded purchase; that bill's vendor and currency must match the credit note's, and the bill can't be voided. If the credit comes from an already-authorized return, link that authorization instead of (or alongside) the bill.
4. Add the items, services or ledger-account lines that make up the credit, with their quantity, price, tax and, if applicable, withholding, division, department, class, location or project depending on the modules active for your company.
5. Save the document. If your company has automatic credit application enabled and you've already entered the affected bill, you can use Save and Apply Credit instead of Save so AdmCloud applies the credit to that bill in the same step; otherwise, save normally and apply the credit later from the Applications module.

Applying the credit to a bill

A credit note only reduces what you owe the vendor once it's applied against one or more open bills; saving it doesn't apply it automatically, unless you use the Save and Apply Credit button described above. When applying the credit, AdmCloud validates that:

• The chosen bill belongs to the same vendor as the credit note.
• The bill isn't voided and has an open balance.
• The bill's currency matches the credit note's currency.
• The bill's open balance is greater than or equal to the credit amount you want to apply.

If your company doesn't have automatic application enabled, you can apply the credit manually afterward, even splitting it across several bills for the same vendor.

Key fields

Validations when saving

• The vendor is required and can't be voided or inactive if the note is created from scratch.
• The reference can't repeat for the same vendor and subsidiary.
• You must add at least one valid line, either an item/service line or a ledger-account line.
• The exchange rate must be greater than zero.
• The Accounts Payable period matching the date must be open.
• Each line's discount must be between 0% and 100%, and negative prices aren't allowed if the quantity is greater than zero.
• If the line's item requires a lot or attributes, you must enter the lot or the attributes.
• If you link an Affected Bill, it must belong to the same vendor and currency as the credit note, and can't be voided.
• If you link a Return Authorization, it must be in authorized status.
• When using Save and Apply Credit, the affected bill must have an open balance equal to or greater than the credit amount, and its currency must match the note's.
• You can't change the document number when editing, nor edit or void a note that's already been electronically signed if your e-invoicing configuration prevents it.

Deleting or voiding

You can delete a credit note only if it has no dependent documents (for example, if it's already been applied to a bill, or has an electronic signature on record); in those cases, AdmCloud blocks the deletion and you must void it instead. Voiding keeps the document and its accounting entry for audit purposes, but marks it as cancelled and it no longer affects the vendor's balance.

Reports

From the list's Reports menu you can generate a vendor credit note report, filterable by date, vendor(s), subsidiary, item and whether voided documents are included.

Availability, permissions and conditions

• Access is controlled by the "Vendor Credit Notes" permission, with separate levels for browsing, adding, editing, deleting and voiding.
• The Save and Apply Credit button only appears if your company has the automatic credit application feature enabled, and only when you've entered the Affected Bill.
• Tax withholdings are only shown depending on the mode configured in your company's Preferences.
• The NCF / Fiscal Receipt Number field only applies in countries with this requirement (for example, the Dominican Republic) and depends on the fiscal sequence configured for your company.
• The lot, attribute, division, department, item class, location and project fields only show up if your company has those modules active.
• Subsidiary is only required if your plan has subsidiaries enabled.

Tips and common pitfalls