Purchase Credit Notes in Cin7

A supplier credit note is a way to amend a purchase order invoice after it has been authorised. In Cin7, there are 2 ways in which you can create the credit note.

I. Credit Note in a Purchase Order

II. Standalone Credit Note

The discussion on these items are found below.

I. Creating the Credit Note in a Purchase Order

Locate the purchase order that you want to create the credit note.
Fill up the credit note number and credit note date. Click on Copy.
You can modify the quantity, price or discount field depending on the reason for the credit. The following scenarios are some of the reasons for its issuance:
1. unit price has been overcharged
2. when a discount was applied to an order after the invoice has been authorised
3. quantity received is lacking or they are damaged
4. quantity received was incorrect, or it was shipped out incorrectly
Click on Authorise.
If the scenario of the credit note involves a change in the quantity, once you click on Authorise, you will get a prompt to Authorise the Unstock together with the credit note.
1. Go to Unstock, click on Copy from Credit Note and Authorise. Doing this will now save the credit note created. The logic behind doing the Unstock tab is to remove the stocks from your inventory if it has been damaged or if it was received incorrectly since these will no longer be sellable.

6. There are two ways of settling a supplier credit:

a. Receiving a refund from the supplier. If this is selected, click on the Refund button and fill up the details of the refund received from the supplier.

b. Receiving a credit note to be used for future purchases from the supplier.

7. If a credit note option is selected, go back to the Credit Note tab, scroll to the bottom and click on the +Supplier Deposit button, fill in the details. This is to "banked" or record the credit so the system will be able to recognise that you have some unused credits. Click on Create and Save. Please note, the Deposit Account is linked to your Account Mapping settings, this depends on what account has been chosen for the supplier deposit, common terminology used is Prepayments, Supplier Deposits or Advance Payment to Suppliers.

8. Go back to the Invoice tab and scroll down to the bottom of the page under the Payment section, click on Use Supplier Deposit.

9. Select the credit note that was created by putting a checkmark beside the date on the box. Click on Add & Save.

10. The supplier invoice will now be marked as either partially or fully paid, depending on the amount of the credit application.

Use of the Supplier Deposit button

This will ensure that Cin7is able to recognise the unused supplier credits that can be applied to any open invoices from the supplier.
Information for any remaining credits can be found under Purchases, and then select Supplier Deposits. This will list all of the open and used deposits that were recorded in Cin7.

II. Creating a Standalone Purchase Credit Note in Cin7

This is used when the credit note to be issued is not linked to a particular purchase order. This is rarely used in the system.

To create a standalone credit note, please follow the below procedure:

1. Go to Purchase, select Purchase Credit Note, and choose the supplier's name.

2. On the Credit Note tab, click on the plus sign and select the service item that's most appropriate for the situation.

Note: Since the credit note is not associated with a purchase order, the list of products will not come up but it will instead show the non-inventory items.

3. Enter the amount of the credit and click on Authorise.

4. Click on Supplier Deposit at the bottom of the page and fill in the details. Click on Save.

5. You can now apply the credit note to any open invoices you have with the supplier.