Credit Note - JV

Can anyone help me figure this out? We have issued a credit to our customer and we need to enter the journal entry credit note. So, I’ll put in the AR and put the party in the party field. Then I will credit that account the amount.

Then what? What account is debited?

I read this in the docs:
“Credit Note” is made for a Customer against a Sales Invoice when the company needs to adjust a payment for returned goods. When a Credit Note is made, the seller can either make a payment to the customer or adjust the amount in another invoice.

Debit: Sales Return Account
Credit: Customer Account

It seems I have the credit line correct but I’m lost on what is the “sales return account”… is that just product sales? I tried that first and received an error when I tried to pull that in to the payment entry to use as payment against the invoice.

Thank you so much!

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“Sales” is correct. Accounts Payable and Accounts Receivable GL accounts have per-party sub ledgers, so the customer and suppliers AP/AR don’t mix with each other.

Thanks @tmatteson

So, I did sales as you suggested and then I go to payment entry and pull that JV in and here’s the error I receive:


So I can’t figure out how to use this credit in combination with the customer’s payment to make their balance = $0, which is what it should be.

Is is_advance checked? It should be.
A standalone Credit/ Debit Note exists in V11, which is super useful. Consider upgrading if you need this functionality.

Interesting… that is not checked. Curious why/what that means? I will try now and let you know.

I have upgraded my test environment to v11 for precisely this reason… but it’s filled with bugs. I can’t even create a new item on my test environment. ERPNext team is investigating. :frowning:

Should both lines be marked as “is_advance”? @tmatteson

I did the first line first and it still gave me the same error in payment entry.

You are creating an advance(“Note”) to the Customer/ Supplier (AR/AP), not to Sales.

So I did it correctly and it still isn’t working.

I made row one the “is advance” and did not touch row 2.
I still get the same error on payment entry when I try to use this JV. :frowning:

I wanted to post the solution here for anyone else that comes across this post.

To attach the credit note to the invoice to make it show paid, go to Accounts>Match Payment with Invoices and enter the information and the Credit Note will appear along with open invoices. Apply accordingly.

Big thanks to @DBoobis for this:
You can apply any open credit/payment to any open invoice in the “Match Payments with Invoices” screen. You can then go to Payment Entry to create a payment document for the remaining amount.