Processing Credit Notes and Debit Notes
You can post credit notes that apply to existing and non-existing (cleared) returns and invoices, as well as credit notes that do not reference returns or invoices. You can post debit notes that apply to existing and non-existing invoices, or just to the vendor.
Credit notes and debit notes are completed when you post them. You cannot recall them after posting to make changes. When you create credit notes from returns, the credit notes complete the returns.
If you use the Keep Transaction History option, you can display posted credit notes and debit notes in the Credit/Debit Note Entry form until you use the Clear History form to clear them from Purchase Orders. If you do not keep transaction history, posted credit notes and debit notes are deleted during Day End Processing (run in Inventory Control).
Effects on Inventory Control
Credit notes that apply to returns affect quantities and costs in Inventory Control only when the credit note adjusts returned quantities and costs.
If you adjust returned quantities on credit notes, posting them adjusts the quantity on hand for the location in Inventory Control for the difference between the quantity returned on the return and the quantity on the credit note.
If you adjust the return costs on the credit note, posting or Day End Processing adjusts the item costs in Inventory Control and creates the appropriate general ledger journal entries.
When credit notes and debit notes are applied to invoices, the transactions affect item costs in Inventory Control, but they do not change item quantities.
Job-related credit notes. Job-related credit notes generally arise from returns. They update Project and Job Costing quantities and costs only if the credit note differs from the posted return (which has already reduced the actual quantities and costs in WIP).
See also
Entering credit notes and debit notes
Entering additional costs on credit notes and debit notes
Checking credit note and debit note totals
Posting credit notes and debit notes