How To: Enter a Supplier Credit Note

Table Of Contents

Introduction
Post
Pay
N/C
Conversion Rate (Optional)
InvDate
Tax
Description (Optional)
Status Note (Optional)

Introduction

The SP Ledger is used to record supplier-related costs that are not linked to stock purchases. Typical examples include:
  • Utility bills
  • Stationery and petty cash expenses
  • Professional services
  • Non-stock supplier credit notes, such as brokerage or promotional allowances
You can also use the SP Ledger to record supplier credit notes that do not involve returned stock.
Warning: Do not use the SP Ledger to process supplier credits for stock returns.
If stock is being returned to a supplier, use Supplier Returns instead.
Note: If you are entering a credit note for an EU supplier, see How To: Enter a Supplier Credit Note for an EU Supplier.

Steps

  1. Open the Accounts screen (show me how).
  2. Open the SP Ledger tab.
  3. Press Alt + E or click Edit to enter edit mode.
  4. Press F3 or click Add to create a new transaction.
  5. Use the lookup window to find and select the supplier.
    A new row will be added to the grid for the selected supplier.
  6. Configure the following fields:
    FieldSetting
    CrdTick this box to identify the transaction as a Supplier Credit
    S/PSet to P for Purchase Ledger
  7. Complete the remaining transaction details, paying particular attention to the following fields:

    Post

    Controls whether the credit note is posted immediately.
    • Ticked (default): Use when you have already received the supplier credit note.
    • Unticked: Use when the credit note has not yet been received and needs to be posted later.

    Pay

    • Leave this option unticked.

    N/C

    • Select the nominal account the credit should be posted to.

    Conversion Rate (Optional)

    • Update the exchange rate if required.

    InvDate

    • Enter the supplier credit note date.
    Note: If you enter today's date, Khaos Control will display a warning message for confirmation.

    Tax

    • Select the appropriate VAT rate from System Data Tax Rates.
    • If VAT should not be reclaimed, select Exempt.
    • For invoices issued by suppliers in another EU state, Khaos Control may prompt you to confirm whether VAT can be reclaimed.
    For more information, see the VAT warning guidance in Accounts SP Ledger Tab.

    Description (Optional)

    • Enter a description explaining what the credit note relates to.

    Status Note (Optional)

    • Add notes to track approval requirements or internal processing status.
  8. Press Ctrl + S or click Save.
  9. If the transaction date is today's date, confirm the warning message by clicking Yes.
  10. Click OK on the information message to complete the process.

Additional Information

Supplier credits entered through the SP Ledger are designed for non-stock related transactions. They reduce supplier balances and post the credit against the selected nominal account.
Examples of suitable supplier credits include:
  • Brokerage allowances
  • Promotional allowances
  • Utility account credits
  • Office expense refunds
  • Non-stock supplier adjustments
If stock quantities need to be reduced because goods are being sent back to a supplier, always use the Supplier Returns process instead.

Tips

  • Check the selected nominal account carefully before saving.
  • Use meaningful descriptions to make future reporting easier.
  • If approvals are required before posting, use the Status Note field to record progress.
  • Review the VAT code to ensure the correct tax treatment is applied.

See Also


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