Credit the Original Vendor and Recreate

Step to Credit the Original Vendor and Recreate

The Sage 50 software is well appreciated for its highly user-friendly interface & improved features. It has really made lives easier for businesses and accounting professionals and saved a lot of their time & effort. However, as per the feedback received from a section of Sage 50 users, there are some account-related features they are not quite familiar with. Some of them have informed that they are finding it difficult to create and manage vendor credit notes, more precisely, to credit the original vendor and recreate them. 

If you purchase some goods from a vendor and return the goods later, or if you cancel a bill, you will need to create a credit note in Sage from the original bill. Alternately, you can create a stand-alone credit note, and attach this to any outstanding bills for the same vendor later on. In this blog, we will discuss how you can create a vendor credit note from a bill and also how to create a stand-alone credit note for the same vendor. 

Here we go!

What is the procedure to Create a Vendor Credit Note from a Bill?

Please follow the steps below-

  • Go to the Expenses section
  • Click on Vendor Bills
  • Locate the bill you want to credit and click on it
  • Now click on Add Credit Note
  • Change the details if required. You can view the total of the credit note at the bottom of the note
  • If the credit note you are creating is a draft, checkmark the box named Save as draft. You can come back to this credit note later on when you want to update the ledger accounts. Then you will need to clear this check box.
  • Enter additional notes, if necessary
  • Click Save.

If the value of the credit note is the same as that of the bill, the status will be displayed as ‘Paid’. Else, the status will appear as ‘Part Paid’.

What is the procedure to Create a Stand-alone Credit note for the same Vendor?

Please follow the steps below-

  • Go to the Expenses section
  • Click on Vendor Bills
  • Click on New Credit Note
  • Now, type in the following information:
    • Vendor– provide the vendor name. As you start typing, a list of vendors will appear and you can select from it. You can also create a new vendor here.
    • Credit Date– provide the date of the credit note
    • Vendor Reference– provide a reference such as the credit note number.
    • Reference– any additional information, if necessary
  • Go to the Search for Product field, enter the product name, choose the relevant product from the list and record the purchase of the product. You can also change the existing information in this field if required
  • If you want to add more products, repeat the above step.
  • If you do not need to add a product, type in the following information:
    • Description-The description related to the credit
    • Ledger Account– select the ledger account from the list
    • Qty/Hrs- specify the number of items for which the credit is needed
    • Price/Rate- specify the net value for the credit.

The total gross value for this item line will be shown under Total.

  • If you have created any transaction analysis type, click on the Finder icon and select the relevant analysis category.
  • If you want to add more transactions, repeat the steps above

Please note- If the credit note you are creating is a draft, checkmark the box named Save as draft. You can come back to this credit note later on when you want to update the ledger accounts. Then you will need to clear this check box.

  • enter any note, if needed
  • If you wish to attach a file (such as a receipt), click on the Attachment button, click on Upload files and then locate and double-click the file. 
  • Click Save.

The status of the credit note will be shown as ‘outstanding’ till you attach it to a bill or till the vendor issues you a refund.

We hope the procedure mentioned above would help you a lot in crediting the original vendor or recreating a credit note in Sage 50. If you are still facing any difficulties in carrying out the steps mentioned above or if you have any queries, you may get in touch with some authorized Sage professionals.

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FAQs

Why do I Need to Create a Credit Note?

If you purchase some goods from a vendor and return the goods later, or if you cancel a bill, you will need to create a credit note in Sage from the original bill. Alternately, you can create a stand-alone credit note, and attach this to any of the outstanding bills for the same vendor later on.
If you have not yet created a credit note, before you create the same, you will have to create a contact record for the concerned vendor. If you regularly buy the same products from the vendors, you can create records for these in advance.

What Payment Reversal types are allowed in Sage 50?

Primarily, there are three methods to reverse a transaction in Sage 50. These are- chargeback,  refund and authorization reversal.

What is the Procedure to Void a Payment in Sage?

Firstly, you should choose your mode of payment. Then, specify the name of the concerned vendor, and enter a date and the check number (like 777-REV). This is to indicate the check as ‘void’. Next, go to the Payment Amount column and choose both the void and original invoices. Sage 50 will automatically enter the complete invoice amount for them.

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