Sales credit notes are used to reduce the amounts owed to you by a customer.
It may be sent to you by one of your customers if they normally issue self-billing invoices (for example for grain or livestock sales).
Alternatively you may need to issue a credit note to one of your customers who has been previously been billed by your business.
NB occasionally you may receive a credit note before you have an invoice to cross reference it to however we strongly recommend that it is assigned to an invoice, wherever possible, for the following reasons:
It reduces the scope for error. User error could mean negative customer accounts are created, or you could lose track of which credit notes apply to which invoices.
It forces workflow to be in a methodical order, i.e. credit notes should not normally be created before the invoices.
NB – A credit note must be assigned to an invoice if there is a contra charge on it.
How to issue a credit note to your customers
In Farmplan Business Cloud, creating a credit note is similar to creating an invoice.
Go to Customers > Customer Credit Notes > New Credit Note
If you have opted to allow Farmplan to create your invoices (See Document Settings > Invoice Options) you will see this screen layout:
Select the customer the credit note is being issued to. All current outstanding invoices for this customer can be seen in a drop down list under Invoice Reference. Pick the one that this credit note relates too.
Next, pick the item from the Invoice Line Item field and the amount to reduce the invoice by.
Once the credit note has been saved, you can view/edit and email it in the same way as Sales Invoices.
If you have not ticked the option for Farmplan to create invoices (Document Settings) the screen layout will be in batch mode.
Pick the customer and the invoice that this relates to from the Inv.Ref field. If the invoice consists of multiple lines you should enter the values against individual lines using the split item button.