Credit notes

How Smartworks creates sales and bill credit notes in Xero, and the stock record Smartworks keeps.

Overview

Smartworks creates two kinds of credit note in Xero. A sales credit note credits a customer, from Issue Sales Credit Note. A bill credit note credits a supplier against a received purchase order, from Credit. Each is created in Xero first. Smartworks then keeps a record of it, and moves the products on it into or out of stock.

SmartworksSAVE CREDIT NOTE

Creates

XeroSales or bill credit note

Recorded once

SmartworksCredit note record, stock

Smartworks creates credit notes in Xero, then records them and adjusts stock.

Sales credit notes

Issue a sales credit note creates a sales credit note in Xero for the Customer, with the Issue Date, Reference, Status and lines you entered. The status can be DRAFT, SUBMITTED or AUTHORISED. Xero gives the credit note its number, which Smartworks shows in Credit Note Created.

For each line with a product, Smartworks records the returned quantity as going back into stock.

Bill credit notes

Credit on a received purchase order opens Issue Bill Credit Note, filled in from the order. When you click SAVE CREDIT NOTE, Smartworks creates a bill credit note in Xero for the order’s supplier. Its number and reference are the purchase order number followed by -CN.

For each line with a product, Smartworks records the credited quantity as going back to the supplier, which takes it out of stock. The credit note is linked to the order and its lines.

What Smartworks keeps

Kept in Smartworks	Why
A record of each credit note, with its status when it was created and who created it	Lists the credit notes on a purchase order, with Date, Credit Number and Created By, and counts them on the Credit button.
The link from each bill credit note line to its purchase order line	Shows which order line was credited.
The stock movement for each product line	Keeps stock on hand right. See Adjustments and imports.

The record is written once, when the credit note is created. When you open a credit note from a purchase order, its details are read from Xero.

PDF, email and allocation

Smartworks has no PDF or email for credit notes. Smartworks also does not allocate a credit note to an invoice or bill, or refund it. Do these in Xero.

Limitations

If a credit note is voided or deleted in Xero, Smartworks still lists and counts it on the purchase order, and its stock movement stays.
Smartworks does not allocate credit notes to invoices or bills. Allocate them in Xero.
If something goes wrong after Xero has created the credit note, the credit note can exist in Xero with no record or stock movement in Smartworks. Check Xero before creating it again.