Recording supplier credit notes

Summary

When a supplier credits you, for a return, damaged goods, an overcharge, or a rebate, that credit needs recording properly. Torqueflow treats a supplier credit note as its own document, so the credit reduces your purchase spend and, where goods went back, your stock.

You record a credit note the same two ways you record an invoice: by scanning it, or by entering it by hand. The one extra thing a credit note asks for is a reason on each line, because the reason decides whether stock moves.

Prerequisites

• You are an Owner or Manager. Service advisors can review a scanned credit note but not confirm it. Technicians have no access.
• The supplier exists.

Steps

Record a credit note by scanning

1. Send the credit note into the purchase scan inbox the same way you send invoices (email, upload, or photo). See Scanning purchase invoices.
2. Torqueflow recognises it as a credit note and shows a Credit note badge on the inbox row.
3. Open it to review. Set a reason on each line (see the reason list below). Use Apply reason to all lines if they share one.
4. Confirm. Confirm is blocked until every line has a reason. The footer names any lines still missing one, and warns you how many return lines will reduce stock.

Record a credit note by hand

1. Follow Entering a supplier invoice by hand and choose the Itemised form.
2. Set the Document type to Credit note.
3. Add the lines, and set a reason on each.
4. Confirm.

Choose the right reason

Each line needs one of these. There is no default, on purpose, because the wrong reason can move stock when it should not.

• Return - goods went back to the supplier. This is the only reason that puts stock back.
• Damaged - credit for damaged goods. Money only (damaged goods never entered your usable stock).
• Wrong part - credit for an incorrect part. Money only.
• Overcharge - the supplier billed too much. Money only.
• Price correction - an agreed price adjustment. Money only.
• Rebate - a volume or goodwill rebate. Money only.
• Other - anything else. Money only.

Link the original invoice (optional)

When the credit relates to a specific invoice, link it in the Original invoice picker. Link it where you know it. Unlinked credits still balance the account, they just cannot be traced back to a purchase.

Expected Outcome

• A supplier credit note recorded against the supplier, reducing your purchase spend for those parts.
• For Return lines with a catalogue part, stock reduced accordingly.
• The credit note visible on the purchases list with a Credit note badge and a negative total.
• The credit visible on the affected part’s purchase history, shown as a negative with its reason (for example “Credit, Return”).

Notes

• Only Return lines move stock. Every other reason adjusts spend without touching stock.
• A Return line needs a catalogue part to move stock. Without one it is recorded as money only, and the line tells you so.
• The credit note is the physical truth. If your stock records show fewer in hand than the credit returns, Torqueflow still records the credit and shows a warning naming the part and the counts, rather than blocking you. Stock is never driven below zero.
• Credit notes do not take part in invoice-to-delivery matching. That is for invoices and deliveries only.
• Credit notes on the purchases list are not clickable yet. They are there so the credit stays findable.

Troubleshooting

Problem: Confirm is blocked with “Lines 3, 7 need a reason”. Cause: Every line on a credit note must have a reason. Fix: Set a reason on the named lines, or use Apply reason to all lines then adjust any that differ.

Problem: I expected stock to go back but it did not. Cause: The line reason was not Return, or the line had no catalogue part. Fix: Only Return lines with a catalogue part move stock. Check the reason and the part link.

Problem: A persistent warning says the stock records showed fewer in hand than I credited. Cause: Your recorded stock was lower than the quantity returned. Fix: This is expected when records had drifted. The credit is recorded correctly. Follow the link in the warning to review the part if you want to reconcile.