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Creating a Credit Note from a Payable Invoice

Once a payable invoice has been posted, you can use it to begin to create a credit note. The document created by the conversion inherits many of the original invoice details, including its currency and its analysis dimensionsCustom objects that allow you to analyze the activity in your business in additional ways, such as by cost center, project, employee, or any other business entity important to you..

To create a credit note from a "Complete" payable invoice:

1. Locate and retrieve the details of the posted payable invoice that you want to convert. See Viewing Payable Invoice Lists for more information.
2. Click Convert to Credit Note. If you can't see this button, contact your administrator.
3. Enter the vendor credit note number provided by the vendor. The behavior of this field is controlled by custom settings. For more details, ask your administratorOne or more individuals in your organization who can configure and customize the application. Users assigned the System Administrator profile have administrator privileges..
4. Click Convert to Credit Note. This creates the template for a new credit note using the details of the selected payable invoice.
5. Amend the "In Progress" payable credit note details, as required.
6. [Optional] Specify a reason for issuing the credit note.
7. [Optional] Add, edit or remove credit note line items, as required.
8. Click Save.

Converting an intercompany payable invoice to a credit note

If the payable invoice has intercompany lines, when you convert it to a credit note the credit note line items inherit the destination company from the payable invoice line items. This ensures that the credit note has corresponding intercompany lines.

When you post the payable credit note, an intercompany transferObject used as a staging location for data used when transferring costs to other companies in the same organization. record is created. When you process this intercompany transfer, a journal is created in the destination companyCompany that receives the costs during an intercompany transaction.. See Using Intercompany Accounts Payable for details of how GLA and dimension values are derived.

Automatically matching a credit note to its associated payable invoice

When you create a credit note by clicking the Convert to Credit Note button, you can automatically post and match the credit note to its associated payable invoice using the Post & Match button. This button is only available if the Payable Invoice field is populated on the credit note, and the payable invoice is unmatched.

When you click the Post & Match button:

• If the payable invoice and credit note fully match each other, the invoice's Match Type will be set to "Credited" to indicate that it has been fully matched to a credit note.
• If the credit note value is less than the payable invoice value, the invoice will be part matched. You must match the documents manually if you want to apply a discount or write-off.
• If the credit note value is greater than the payable invoice value, an error message will be displayed and you will remain on the payable credit note detail page so that you can amend the credit note value. If the credit note value is intentionally greater than the invoice value, you must match the documents manually.

When the payable invoice and credit note match successfully, a matching reference is created and the Matched Payments list on each document is updated in the usual way. Any currency differences are handled automatically by the creation of currency write-off journals. Documents matched using the Post & Match button can be unmatched in the usual way.

Note:

Note

If the credit note fails to post, you will remain on the payable credit note detail page so that you can correct the credit note details. If the credit note posts successfully but fails to match the invoice, the Cash Matching tab will be displayed so that you can resolve the match manually.

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