Credits can be created at any time from the Credit Notes module.
Which payment type to choose depends on how you will refund the customer. Here are a few possible scenarios:
Perhaps you've exchanged faulty items for new goods. Please see Return and Exchange for an explanation of how best to do this.
If this means that no money needs to be refunded, choose No Payment Required.
If you intend to return the money owed to the customer via a bank transfer, then enter To Be Refunded as the payment type. Import the Credit Note into your accounting software and arrange payments from there.
You may wish to return money to the customer directly using cash from an available register - in which case the payment type will need to be set so that the Close Register process tallies the correct totals. If you do this, select a payment type like Cash or Card, but remember to remove the invoice date from the transaction - this will allow the amount to be removed from the Register Totals.
If you extend credit to a customer, you could simply mark the credit as On Account. By importing to your account software, the credit will be offset against other outstanding invoices on the customer's account; and their monthly Statement will only show their outstanding balance.
It is possible to automatically create a credit from an existing Sales Order.
Notice that the sales related to the credited items are linked in the 'Linked Transactions' grid at the bottom of the screen.
Importantly - if you choose to use this method the COGS will be drawn from the related Sales Order, as opposed to the last cost. Therefore creating a Credit Note by this method is a much more accurate way of creating a credit.
There may be occasions where you need to credit a customer, but you do not receive stock back into your inventory.
First, follow the steps above to complete a credit note in the usual way.
Once a Completed Date has been entered the Qty Moved column will pre-populate with values. You now need to go back into this column and make a few changes.
You can now Save the entire transaction.
Notice that the dollar total of the Credit remains the same, but the quantity of stock returned to the inventory has been reduced.
If you have received stock when crediting a customer and you later decide those items are faulty, you can use a stock adjustment to write off the stock.
To create an Adjustment
In your accounting software, the adjustment will become your journal, which will credit your stock on hand account, and debit your default expense account.
There are a couple of methods to do this, please see Return and Exchange.
Please see POS Returns.
Payments in Cin7 are for your reference only. We do not import anything in the payment field into any accounting package.
Once a Credit Note has been completed and imported into your accounting software, the COGS will generate for the goods in the Credit Note. For a standard Credit Note, using the perpetual accounting method, the COGS account will be reduced by the value of the related goods, and the inventory account increased by the same value.
Please don’t be tempted to create a new product called 'Faulty Products'. It makes it very difficult to get the costs accurate if you do this. It is much easier to follow the instructions above.