Sales Credit Note Applet - Finance Module

Understanding the Sales Credit Note Applet

Sales Credit Note Applet & Related Document Types

Introduction to the Sales Credit Note Applet

The Sales Credit Note Applet is a key component in financial management, enabling businesses to process sales returns, customer refunds, and account adjustments efficiently. It ensures accurate financial records and proper customer transaction documentation.

The functionality of this applet applies to multiple document types, including:

• Sales Debit Note

• Internal Sales Credit Note

• Internal Sales Refund Note

Understanding the Sales Credit Note Applet helps users manage financial reversals systematically and maintain precise accounts receivable balances.

Purpose of the Sales Credit Note

A Sales Credit Note is issued when a customer:

• Returns goods

• Disputes an invoice

• Requires an adjustment to a previously issued invoice

This applet allows businesses to handle these situations seamlessly by enabling users to issue credit notes, apply contra transactions, and maintain financial accuracy.

Navigating the Sales Credit Note Applet

Accessing the Sales Credit Note Listing Page

The main page of the Sales Credit Note Applet displays a listing of all issued credit notes. Each entry represents a credit transaction linked to a customer and an invoice.

Clicking on any Sales Credit Note from the listing opens a side menu where users can view and edit details.

Creating a New Sales Credit Note

Filling in the Main Details Tab

To create a new sales credit note:

1. Click the Plus Button (+) on the main page.

2. Select the appropriate Branch and Location from the dropdown menus.

3. Navigate to the Account Tab and choose the Customer by clicking the Entity ID Field.

4. A list of customers will appear, allowing users to search and select the correct customer.

Why is this important?

• Ensures that credit notes are correctly linked to customer accounts.

• Helps businesses maintain accurate accounts receivable records.

• Enables seamless financial reconciliation and reporting.

If the customer is not listed, users must first add them in the Customer Maintenance Applet.

Managing Sales Credit Notes (Lines Tab)

The Lines Tab specifies details of the credit note, including:

• GL Code

• Credit Amount

• Reference Details

To add a line item:

1. Click the Plus Button (+).

2. Select the GL Code linked to the credit note.

3. Enter the Credit Amount and relevant details.

4. Click Add to finalize the entry.

Why is this important?

• Ensures accurate credit transactions are recorded.

• Helps track credit adjustments to customer accounts.

• Provides a clear audit trail for financial accountability.

Applying Contra Transactions

The Contra Tab allows businesses to offset credit notes against sales invoices, keeping customer balances accurate.

To apply a contra transaction:

1. Navigate to the Contra Tab.

2. Click the Plus Button (+).

3. The system will display outstanding sales invoices under the same customer.

4. Select the relevant invoices and adjust the contra amount if necessary.

5. Click Add to finalize the contra transaction.

For example, if a customer has a 1,000 MYR invoice, and the business applies a 500 MYR credit note, the remaining balance of 500 MYR remains open for future contra transactions.

If contra needs to be applied to both a sales credit note and a sales invoice, navigate to the Contra Tab, click Plus, and select the necessary transactions. The Doc Open Amount column will show the available contra balance. Users can adjust amounts in the Amount Contra Column, tick the required invoices, and click Add.

Once the contra transaction is applied, the Doc Open Amount reflects the updated balance. If the Doc ARAP Balance is zero, no further contra transactions can be processed.

Users can view contra transaction details in the ARAP Tab, including settlement details, open amounts, and outstanding balances.

How the Sales Credit Note Applet Enhances Financial Management

The Sales Credit Note Applet provides key benefits, including:

• Efficient Sales Returns Management – Streamlines processing of sales returns and customer refunds.

• Accounts Receivable Adjustments – Ensures customer accounts are accurately adjusted.

• Automated Financial Posting – Links credit notes to Sales Invoices, General Ledger, and Customer Accounts.

• Flexible Contra Handling – Allows businesses to offset credit notes against outstanding invoices.

• Seamless Integration with the Finance Module – Works alongside Sales Invoice, Customer Maintenance, and Ledger Applets.

Applicability to Other Document Types

The same steps and concepts apply to:

• Sales Debit Note – Used for adjusting additional charges or correcting underbilling.

• Internal Sales Credit Note – Used within the organization for inter-company transactions.

• Internal Sales Refund Note – Processes refunds related to internal sales transactions.

Understanding the Sales Credit Note Applet helps businesses maintain financial accuracy, streamline contra transactions, and manage customer credits effectively. It is a vital tool for ensuring transparent and well-documented financial records.

Next Steps: Transitioning to the Ledger and Journal Applet

Once a sales credit note is issued, it is recorded in the Ledger and Journal Applet, where all financial transactions are consolidated. Understanding how ledger entries and journal postings work is essential for maintaining accurate financial records.

Continue to the next section: Understanding the Ledger and Journal Applet