How To: Cancel a Credit Note

WARNING: Credit Notes can only be deleted if they have NOT been issued. If they have then you will have to create balancing sales orders and / or credits in order to balance the customer's account.

There are many reasons why a Credit Note might be cancelled. For example the wrong Sales Order type had been chosen when creating and saving a sales order. Or a Return credit was created in error. As long has the Credit Note has not been issued, then you are able to cancel it.

Unissued Credit Note

Cancel the Credit Order

  1. Find and open the credit note.
  2. Click the dustbin icon is the button bar's DELETE button to delete the credit note.
  3. Enter a deletion / cancellation reason and click 'OK'.
    Note: by default, a free text description is used, alternatively, the cancellation reason can be selected from a pre-defined list maintained in [ System Data | Cancellation Reasons ] (this requires custom development, which may be chargeable).
  4. Click 'Yes' to the prompt.

Displaying Cancelled Credit Note Report

To view the sales orders that have been cancelled:

  1. Open a Sales Order screen (show me how).
  2. Display the drop-down 'Other Actions' menu either by pressing F9 or clicking the down arrow immediately to the right of the green circle with a white cross icon at the top of the button bar.
  3. Select Audit
  4. Select Legacy Audit
  5. In the Audit Dialog click on the cancelled sales order report button button.
  6. Select the date range from the date range popup.
  7. Click on 'OK'.
  8. In the Order Type popup select Credit Notes.
    Note: you could select 'Cancel' for all types.
  9. The Cancelled Orders Summary report will be displayed.

Issued Credit Note

If the credit note has been issued then the best method is to create a sales invoice in the SP Ledger to use the credit note against:

Create the SPLedger invoice

  1. Open the [ Accounts | SP Ledger ] tab.
  2. Press Alt+E or click the green triangle icon is the buttonbar's EDIT button to enter edit mode.
  3. Press F3 or click the NEW ITEM button has an icon that shows two sheets of paper (identified by having the top right corner folded down), arranged diagonally on the icon from top left to bottom right to add a new item.
  4. Use the Lookup dialog box to locate the customer that has the incorrect credit note.
    Note: The supplier checkbox is used to toggle between customers and suppliers.
  5. A new row is added to the grid for the selected customer/supplier.
  6. Enter the appropriate details:
    • Post: ticked.
    • Pay: unticked.
    • Crd: unticked.
    • S/P: enter S .
    • Nominal: nominal account to post entry against.
    • InvDate: the date of the invoice.
      Note: if the invoice date is today's date then a warning message will appear.
    • Tax: Exempt.
    • Gross: Enter the amount of the credit note.
    • Description: add a note to explain that the entry is to counter an incorrect credit note.
  7. Press Ctrl+S or click the disk icon is the button bar's SAVE button to save the transaction acknowledging any warnings.

Use the credit note to pay for the invoice

  1. Open a Customer screen (show me how).
  2. Find and load the Customer.
  3. Open the [ Statement ] tab.
  4. 'Drag-and-drop' the credit note from the top grid (Allocate From) onto the invoice, you created in the SP Ledger, in the grid below (Allocate To).

See Also

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