General Ledger Journal Entries Generated from Credit Notes
Credit notes are assigned source code
Credit notes debit the vendor's payables clearing account and credit the vendor's payables control account when the transaction is posted in Accounts Payable.
Additional cost credits. When a credit note is posted for an additional cost credit, the credit is debited to the expense account you assign and credited to the vendor's payables control account.
Credits to returns. When you post a credit note to a return with no quantity or cost changes, the vendor's payables control account is debited and the item's payables clearing account is credited.
If a credit note is posted to a return and there are cost changes, Purchase Orders debits or credits the payables clearing and inventory control accounts. When the credit note is posted in Accounts Payable, the payables control account is debited and the payables clearing account is credited.
When a credit note is posted for an invoice, Purchase Orders creates journal entries to debit the payables clearing account and credit the inventory control account, and Day End Processing creates a credit note for the transaction in the Accounts Payable batch. When you post the batch in Accounts Payable, a journal entry is created to debit the payables control account and credit the payables clearing account.
Item cost adjustments. When credit notes are posted to adjust item costs, Day End Processing creates general ledger journal entries to debit the payables clearing account and credit the item's inventory control accounts.
When the credit note is posted in Accounts Payable, a journal entry is created to debit the vendor's payables control account and credit the payables clearing account.
Taxes. Allocated taxes from credit notes are posted to the same general ledger accounts as costs. Recoverable and expensed taxes are posted to the accounts specified for the tax authorities in Tax Services and the inventory control or payables accounts used for the related costs.