Understanding Credit Notes for Sales Returns

A credit note, also called a credit memo, is a credit that you send to your customer. You enter credit notes using the Standard Invoice Entry program. You enter the amount as a negative amount and use the GUI number from your original invoice as the invoice number.

When you enter a credit note for a transaction that included VAT, you must associate the original transaction and GUI number to the credit note. When you click OK after entering the credit note, the system displays the GUI/VAT Multiple Transactions form of the GUI/VAT Transactions program and validates that:

• The amount of the credit note does not exceed the amount of the original transaction.

• The original transaction and the credit note have the same currency code.

• The original transaction and the credit note are for the same customer.

Important: You must take care to enter a credit note for a sales return transaction. The system enables you to enter the GUI/VAT return information as a stand-alone transaction using only the GUI/VAT Transactions program. However, if you enter the sales return transaction without accessing the GUI/VAT Transactions program from the Standard Invoice Entry program, you do not associate the GUI/VAT sales return transaction to a credit note. Failure to associate a credit note to the GUI/VAT sales return information causes data integrity issues in your F4211 and F75T004 tables.

When you enter the GUI information for a credit note, you use the GUI document type of ALW (allowance). The system automatically changes these format codes:

• 31 to 33

• 33 to 35

• 32 to 34

• 36 to 34