Simplify Invoice Corrections: Mastering Purchase and Sales Credit Notes

by | Feb 10, 2025 | Blog

Correcting posted purchase and sales invoices can seem daunting, but it doesn’t have to be.

Whether you’re dealing with a purchase or sales invoice, you can easily create a Credit/Adjustment (CR/Adj) note directly from the posted invoice or by copying the invoice information. This guide will walk you through the steps to ensure your corrections are accurate and efficient. Let’s dive in and simplify the process of managing your invoices!

To correct a posted purchase invoice

You can create the purchase CR/Adj note directly from the posted purchase invoice, or you can create a new purchase CR/Adj note and simply copy the invoice information.

 

To create a purchase CR/Adj note from a posted purchase invoice

  • Go to the Search bar and enter Posted Purchase Invoices. Then, choose the related link.
  • On the Posted Purchase Invoices page, select the posted purchase invoice that you want to reverse. Choose  Create Corrective CR/Adj Note.
  • Edit information on the lines according to the agreement, such as the number of items returned or the amount to be reimbursement.
  • Select Apply Entries.
  • On the Apply Vendor Entries page, select the line with the posted purchase document that you want to apply the purchase CR/Adj note to, select Applies-to ID. The number of the purchase CR/Adj note is inserted in the Applies-to ID field.
  • In the Amount to Apply field, enter the amount that you want to apply if smaller than the original amount.

At the bottom of the Apply Vendor Entries page, you can see the total amount to apply to reverse all involved entries, namely when the value in the Balance field is zero.

  • Select OK.
  • When you post the purchase CR/Adj note, it will be applied to the specified posted purchase documents.
  • Select Post.

To create a purchase CR/Adj note by copying a posted purchase invoice

  • In the Search bar, enter Purchase CR/Adj Notes, and then choose the related link. Or, from Purchasing > Purchase CR/Adj Note.
  • Select New to open a new empty purchase CR/Adj note.
  • In the Vendor field, enter the name of an existing vendor.
  • Choose the Copy from Document action.
  • On the Copy Purchase Document page, in the Document Type field, select Posted Invoice.
  • Select the Document No. field to open the Posted Purchase Invoices page, and then select the posted purchase invoice that contains lines that you want to reverse.
  • Select the Recalculate Lines check box if you want the copied posted purchase invoice lines to be updated with any changes in item price and unit cost since the invoice was posted.
  • Select OK. The copied invoice lines are inserted in the purchase CR/Adj Note.
  • Edit information on the lines according to the agreement, such as the number of items returned or the amount to be reimbursement.
  • Select Apply Entries
  • On the Apply Vendor Entries page, select the line with the posted purchase document that you want to apply the purchase CR/Adj note to, and then select the Applies-to ID action. The number of the purchase CR/Adj note is inserted in the Applies-to ID field.
  • Select OK. When you post the purchase CR/Adj note, it will be applied to the specified posted purchase documents.
  • Assign Reason Code.
  • Choose the Post action.

If a customer wants to correct a posted sales invoice, they could do either of the following tasks:

  • Create the sales CR/Adj note directly from the posted sales invoice.
  • Create a new sales CR/Adj note with copied invoice information.

 

To create a sales CR/Adj note from a posted sales invoice

  • Go to search and enter Posted Sales Invoices and then choose the related link.
  • On the Posted Sales Invoices page, select the posted sales invoice that you want to reverse, drill-down the Correct action, and then select Create Corrective CR/Adj Note action.
  • Edit information on the lines according to the agreement, such as the number of returned items or the amount to reimburse.
  • Select Apply Entries.
  • On the Apply Customer Entries page, select the line with the posted sales document that you want to apply the sales CR/Adj Note to, and then choose the Applies-to ID action.

The identifier of the sales credit memo displays in the Applies-to ID field.

  • In the Amount to Apply field, enter the amount that you want to apply if it’s smaller than the original amount.

At the bottom of the Apply Customer Entries page, you can see the total amount to apply to reverse all involved entries, namely when the value in the Balance field is zero.

  • Select OK. When you post the sales CR/Adj note, it is applied to the posted sales documents.
  • Select Post

To create a sales CR/Adj note by copying a posted sales invoice

  • Go on search and enter Sales CR/Adj Notes and then choose the related link.
  • Select New to open a new empty sales CR/Adj note.
  • In the Customer Name field, enter the name of an existing customer.
  • Select Prepare, then choose the Copy Document action.
  • On the Copy Sales Document page, in the Document Type field, select Posted Invoice.
  • Select the Document No. field to open the Posted Sales Invoices page, and then select the posted sales invoice record that contains lines that you want to reverse.
  • Select the Recalculate Lines check box if you want the copied posted sales invoice lines to be updated with any changes in item price and unit cost since the invoice was posted.
  • Select OK. The copied invoice lines are inserted in the sales CR/Adj Note.
  • Select Apply Entries.
  • On the Apply Customer Ledger Entries page, select the line with the posted sales document that you want to apply the sales CR/Adj note to, and then choose the Applies-to ID action. The number of the sales CR/Adj note is inserted in the Applies-to ID field.

  • When you post the sales CR/Adj note, it will be applied to the specified posted sales documents.

  • Select OK.
  • Assign Reason Code.
  • Select Post.

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