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## 4.4 Create Credit Note

This topic describes the systematic instruction to create a credit note using Create Receivables and Payables screen.

1. On Create Receivables and Payables screen, select Credit Note from the Instrument Type list.
2. Click Proceed to view the screen for populating credit note details.
   The Credit Note - Basic Information screen displays.

   Figure 4-16 Credit Note - Basic Information

   Description of "Figure 4-16 Credit Note - Basic Information"
3. In the Credit Note Number field, enter the unique credit note number to be created. Or in case of existing credit note number, click the Search icon and select the existing credit note number.
4. In the Link Invoice field, click the Search icon to search and select the invoice to be linked with the credit note.
   The Link Invoice screen displays.

   Figure 4-17 Link Invoice

   Description of "Figure 4-17 Link Invoice"
5. Perform the following steps to search and select the invoice to be linked.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 4-17 Link Invoice - Field Description

   Field | Description
   --- | ---
   Supplier | Click the Search icon and select the supplier of the invoice.
   Relationship | Click the Search icon and select the any of the relationship maintained for the selected supplier. In case of linked invoice, the relationship is auto-populated.
   Buyer | Click the Search icon and select the buyer for the credit note. In case of linked invoice, the buyer is auto-populated.
   Invoice Number | Specify the specific invoice to search for.
   Amount From | Specify the minimum amount of the invoice respectively to filter the invoice search.
   Amount To | Specify the maximum amount of the invoice respectively to filter the invoice search.
   Currency | Select the invoice currency.

   1. Click Fetch to view the invoices matching to the search criteria.
   2. Select the invoice(s) from the search result and then, click Save to select the invoices for the credit note.
6. Specify the following credit note details in the Basic Information screen.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 4-18 Basic Information - Field Description

   Field | Description
   --- | ---
   Credit Note Number | Specify a unique reference number for the credit note to be created. OR Click Calendar icon and select an existing credit note number. This field cannot be modified once authorized.
   Link Invoice | Click the Search icon to find the invoice(s) to link the credit note to.
   Credit Note Date | Click the Calendar icon and select the date on which credit note is created.
   Credit Note Expiry Date | Click the Calendar icon and select the date till when the credit note is valid.
   Supplier | Click the Search icon and select the supplier for the credit note. In case of linked invoice, the supplier is auto-populated.
   Relationship | Click the Search icon and select the any of the relationship maintained for the selected supplier. In case of linked invoice, the relationship is auto-populated.
   Program | Click the Search icon and select the program to create the credit note for. In case of linked invoice, the program is auto-populated. This field is applicable only for OBSCF system.
   Buyer | Click the Search icon and select the buyer for the credit note. In case of linked invoice, the buyer is auto-populated.
   Supplier Division Code | Click the Search icon and select the division code of the selected supplier.
   Buyer Division Code | Click the Search icon and select the division code of the selected buyer.
   Currency | Select the currency of the credit note. In case of linked invoice, the currency is auto-populated.
   Adjustment Reason | Select the adjustment reason to be considered for creation of credit note.
   Remarks | Specify the remarks about the credit note, if any.
   Filler Fields/Miscellaneous Fields | Specify the desired values in the filler fields. The bank can configure these fields on Day Zero based on their requirement.

7. Perform any of the below action from the Basic Information screen:
   - Click Next to go to the Commodity and Pricing screen.
   - Click Save and Close to save the credit note details and submit it for authorization.
   - Click Cancel to cancel the creation of the credit note.

Commodity and Pricing

8. Click Next on Basic Information tab.
   The Credit Note - Commodity and Pricing screen displays.

   Figure 4-18 Credit Note - Commodity and Pricing

   Description of "Figure 4-18 Credit Note - Commodity and Pricing"
9. Switch the Add Commodities toggle ON to view Commodity Details section.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 4-19 Commodity Details - Field Description

   Field | Description
   --- | ---
   Credit Note Number | Displays the reference number of the credit note.
   Buyer | Displays the name of the buyer.
   Supplier | Displays the name of the supplier.
   Credit Note Expiry Date | Displays the date when the credit note expires.
   Inherit Commodities | Switch this toggle ON to inherit commodity details from the linked invoice(s). This toggle is displayed only if one or more invoices have been linked.
   Add Commodities | Switch this toggle ON to add the commodities for which the credit note is being raised.
   Commodity Details | Displays the fields related to the Commodity details. This section appears if the Add Commodities toggle is switched ON.
   Invoice Number | Select the invoice whose commodity record is to be linked to the credit note.
   Commodity Name | Click the Search icon to select the required commodity.
   Unit | Select the measuring unit for the goods.
   Quantity | Specify the quantity of the goods as per selected measuring unit.
   Unit Cost | Specify a single unit’s cost of the goods.
   Discount (%) | Specify the percentage of discount to be applied on the total cost.
   Discount Amount | Displays the discount amount based on the discount percentage.
   Tax (%) | Specify the percentage of tax to be applied on total amount post discounting.
   Tax Amount | Displays the tax amount based on tax percentage.
   Net Cost | Displays the net costing based on all the previous fields.
   Action | Displays the following options to edit or delete the commodity details. Click Edit icon to edit the record. Click Delete icon to delete the record.

10. Specify the following details on the Pricing Details section.

    Note:

    The fields marked as Required are mandatory.

    For more information on fields, refer to the field description table.

    Table 4-20 Pricing Details - Field Description

    Field | Description
    --- | ---
    Currency | Displays the selected currency.
    Base Credit Note Amount | Displays the base amount of the Credit Note. Modify the base credit note amount, if required.
    Discount Percentage | Specify the percentage of discount to be applied on the base credit note amount. Discount percentage is auto-calculated based on entered discount amount.
    Discount Amount | Specify the amount to be discounted from the base credit note amount. Discount amount is auto-calculated based on entered discount percentage.
    Tax (%) | Specify the percentage of tax to be levied on the total credit note amount. Tax percentage is auto-calculated based on entered tax amount.
    Tax Amount | Specify the amount of tax to be levied on the total credit note amount. Tax amount is auto-calculated based on entered tax percentage.
    Total Credit Note Amount | Displays the total credit note amount post calculating base credit note amount, discount, and tax.
    Misc Charge 1 Desc | Specify the description of the miscellaneous charges to be added in total credit note amount.
    Misc Charge 1 Amount | Specify the miscellaneous charge amount to be added in total credit note amount.
    Misc Charge 2 Desc | Specify the description of another miscellaneous charges to be added in total credit note amount.
    Misc Charge 2 Amount | Specify the miscellaneous charge amount to be added in total credit note amount.
    Net Credit Note Amount | Displays the net credit note amount post adding miscellaneous charges in the total credit note amount.

    1. Click Add icon to add rows in the grid.
    2. In the Action column of grid, perform any one of the following steps:
    - Click Delete icon to remove that specific row.
    - Click Edit icon and specify the commodity details in the grid.
11. Perform any of the below action from the Commodity and Pricing screen.
    - Click Next to go to the Summary screen.
    - Click Save and Close to save the credit note details and submit it for authorization.
    - Click Back to go to the Basic Information screen.
    - Click Cancel to cancel the creation of the credit note.

Summary

12. Click Next on Shipment Information tab.
    The Credit Note - Summary screen displays.

    Figure 4-19 Credit Note - Summary

    Description of "Figure 4-19 Credit Note - Summary"
13. Review the detail of the credit note being created and perform any of the below action from the Summary screen.
    - Click Save and Close to save the credit note details and submit it for authorization.
    - Click Back to go to the Commodity and Pricing screen.
    - Click Cancel to cancel the creation of the credit note.

Parent topic: Process to Create Receivables and Payables