Supplier credit notes can be used when you return goods to the vendor (supplier) or in case you are offered a discount on already invoiced items.
Select (...)More-> Supplier Credits -> Add to add the credit notes you received. You will need to fill-in the fields similarly to the ones of a bill. You may can view details here.
Selection of supplier and date of issue are mandatory fields. Reference number will help you locate the credit note in the system.
Below you will find the item lines, where it is mandatory to select expense category. In the example, the supplier credit is regarding a purchase serving supplies used in an ongoing project. By marking as "Billable" the amount will be deducted from customer charge.
Attention: In order for the supplier’s balance to be correct after a refund, the value of the supplier credit (note) must be used to pay off the bill. This can be done by adding a payment either from the bill's view page or from the credit note's page using the "Apply credit" option of '+Add payment'
Creating supplier credits via bills.
In order to save time, you can add a supplier credit note through the bill to which the credit is referred.
Just click on "(...)" and then select Create supplier credit.
Next, you are taken to the supplier credit note's add page where the bill is automatically set as as related document. The amounts are pre-filled to save you time, however you may edit any field necessary.
By saving as issued, the supplier credit is automatically issued and marked as paid off (if the purchase invoice/bill was unpaid), using the due amount from the invoice. In other words, it automatically creates the payment transaction by applying credit, as described previously.
If the supplier credit has already been paid off, you will have to also pay off the credit note by adding a new payment.