Sales Credit Note (Internal) Applet

Purpose and Overview

The Internal Sales Credit Note Applet is used to correct, adjust, or reverse previously issued sales invoices. It provides a controlled and auditable way to manage sales corrections and receivable adjustments, ensuring accurate financial reporting and clean audit trails.

Common use cases include:

• Incorrect pricing or billing amounts
• Returned goods or service reversals
• Sales discounts issued after invoicing
• Marketplace fees or post-sales adjustments (e.g. Shopee, Lazada)

Key Features Overview

Who Benefits from This Applet?

Finance & Accounts Receivable Teams:

• Accurate Adjustments: Post credit notes directly to GL accounts with full traceability
• Contra Management: Offset credit notes against open invoices without cash movement
• Settlement Tracking: Record actual refunds and cash movements linked to credit notes
• Audit Trail: Maintain complete history of all credit adjustments for compliance

Sales & Customer Service Teams:

• Quick Corrections: Issue credit notes for pricing errors or post-invoice discounts
• Customer Satisfaction: Process returns and service reversals efficiently
• Marketplace Reconciliation: Handle platform fees and adjustments (Shopee, Lazada, etc.)

Operations & Management:

• Bulk Processing: Import credit notes in bulk for high-volume adjustments
• Status Control: Manage document lifecycle from Draft to Final with proper approval workflows
• Financial Reporting: Ensure credit adjustments are accurately reflected in financial statements

What Problems Does This Solve?

The Post-Invoice Adjustment Challenge:

After an invoice is finalized, corrections cannot be made directly to the original document. Common scenarios include:

• Customer was overbilled due to pricing errors
• Goods were returned after invoicing
• Marketplace deducted commission fees not reflected in the original invoice
• Contractual discounts need to be applied retroactively

The Internal Sales Credit Note Solution:

• GL-Direct Posting — Credit notes use Account Code Type items that post directly to General Ledger accounts
• Contra & Settlement — Two distinct methods to handle credit: bookkeeping offset or actual cash refund
• Non-Inventory — Purely financial adjustments that do not affect stock quantities
• Full Lifecycle — Draft, Final, Void, and Discard statuses with proper accounting controls
• Bulk Import — Template-based import for high-volume credit processing

Key Features Inventory

Key Concepts

Contra vs Settlement

Understanding the difference between Contra and Settlement is essential for correct accounting treatment.

Account Code Items

Credit Notes use Account Code Type items rather than inventory items. These items:

• Post directly to GL accounts (e.g. Sales Revenue Adjustment, Discount Given)
• Are non-inventory — they do not affect stock quantities
• Must be created and linked to the correct GL code before use

Common Account Code Items include:

• Sales Discount
• Marketplace Commission Fee
• Service Reversal
• Administrative Charge

Document Statuses

Each Sales Credit Note follows a defined lifecycle:

Accounting Logic (Debit / Credit)

When a Sales Credit Note is Finalized, the system posts:

This reduces customer receivables and adjusts the corresponding revenue or expense accounts. All entries are fully traceable for audit and reporting.

Quick Start Guide

Step 1: Ensure Account Code Items Exist

Before creating a Credit Note, ensure the required Account Code Type items are set up. You can create them via:

Option A — Doc Item Maintenance Applet:

1. Click Plus (+) to create a new item
2. Enter Item Code and Item Name (e.g. Sales Discount, Marketplace Fee)
3. Set Item Type = Account Code Type
4. Go to the Company Linking tab — select the company and assign the Default GL Code
5. Save the item

Option B — Chart of Account Applet (Recommended):

1. Open the Chart of Account Applet
2. Navigate to GL Code Create Item
3. Search for the relevant GL Category and select the required GL Code
4. Click Create Item — the system automatically creates and links the item as an Account Code Type

Step 2: Create a New Credit Note

1. Open the Internal Sales Credit Note Applet
2. Click the Plus (+) button on the listing screen
3. Fill in the Main Details Tab — Branch, Location, Sales Agent, Transaction Date
4. Go to the Account Tab — select an existing Customer or create a new one
5. Go to the Line Tab — select the Account Code Item and enter the amount

Step 3: Finalize the Document

1. Review all details for accuracy
2. Change the status from Draft to Final
3. The system posts the debit/credit entries to the GL

Step 4: Apply Contra or Settlement (if applicable)

• Contra: Go to the Contra Tab to offset against open invoices
• Settlement: Record actual cash refunds through the Settlement process

Feature Deep Dive

Listing Screen Navigation

The Listing Screen provides a centralized view of all Sales Credit Notes with powerful search and filter capabilities.

Search By:

• Customer
• Branch
• Sales Agent

Filter By:

• Creation Date
• Transaction Date Range
• Posting Status: Draft, Final, Void, Discard

Common Actions:

• View transaction details
• Edit Draft documents
• Track posting, contra, and settlement status
• Audit historical credit adjustments

Credit Note Creation Details

Search Document Tab

When creating a new credit note, you can optionally link it to an existing Sales Invoice via the Search Document tab.

Main Details Tab

Configure the transaction header information:

Account Tab

• Select an existing Customer, or click Plus (+) to create a new customer on the fly
• The selected customer controls available Contra and Settlement options

Line Tab

1. Select the Account Code Item (must be Account Code Type)
2. Enter the Amount
3. Add optional Line Remarks

Examples of line items:

• Marketplace commission fee
• Post-invoice discount
• Service or billing adjustment

Contra Handling

Contra is used to offset the credit note against existing or future invoices without any cash movement.

Steps:

1. Go to the Contra Tab
2. Click Plus (+)
3. The system displays open invoices for the same customer and branch
4. Enter the contra amount
5. Click Add

Typical Use Cases:

• Overbilling corrections
• Credit applied to next invoice
• Internal accounting adjustments

Settlement Processing

Settlement is used when actual money is exchanged as part of the credit note.

Examples:

• Cash or bank refund
• Credit card refund
• Marketplace payout after deducting fees

Behavior:

• Integrated with Cashbook / Bank modules
• Updates payment and reconciliation records
• Creates corresponding bank transaction entries

Importing Sales Credit Notes

For high-volume credit processing, the applet supports bulk import:

1. Download the Sales Credit Note Import Template
2. Fill in required fields offline
3. Upload the completed file to create records in bulk

Recommended For:

• Marketplace adjustments (monthly reconciliation)
• Bulk discount processing
• High-volume credit operations

Configuration & Settings

App Settings

Administrators can configure the following options:

Personalization

Users can define personal defaults to reduce manual input:

Below are screenshots of a finalized credit note showing the completed Main Details, Account, and Lines tabs:

FAQ

Applet Reference

Menu Items

Settings

Personalization

Summary

The Internal Sales Credit Note Applet provides a controlled and auditable way to manage sales corrections and receivable adjustments. Key takeaways:

• Account Code Items are required — credit notes post directly to GL, not inventory
• Contra for non-cash offsets, Settlement for actual refunds
• Draft to Final lifecycle ensures proper review before GL posting
• Bulk Import available for high-volume processing
• Full audit trail for compliance and financial reporting