Crediting Refunds or Discounts on a Supplier Invoice/Vendor Invoice

In this article:

• Creating a New Credit Supplier Invoice
• Applying a Credit 
• Applying a Credit to a Deposit
• Accessing Previous Credit Supplier Invoices

When you receive a request from a third party to pay for services they provided to you, this is called a supplier invoice.  At times, you may need to create credits to address refunds or discounts on those invoices. This article covers this process as well as how to access previously created credits in Actionstep.

Creating a New Credit Supplier Invoice

You create a credit supplier invoice from the original the supplier invoice 

To do this:

1. In Actionstep, go to Accounting > Supplier Invoices > Supplier Invoice. (Remember, your firm may be using different terminology, like vendor invoices, payables, etc.). The Supplier Invoice page appears.
2. In the list of invoices, locate the invoice you want to credit and click its link. The invoice is displayed.
3. Click Create Credit (located the bottom of the invoice) and click OK to confirm you want continue with this task. Step 1 of the Credit Wizard appears.
4. Select the items you want to include in the credit and click Next.Step 2 of the wizard is displayed.
5. Enter the Credit Date and Reason.
   NOTE:  When entering a date, be aware that when you go to apply the credit to a supplier invoice, you will need to do this on a date on or before the supplier invoice date AND the credit date.
6. Click Finish. The credit invoice is created and the Complete window is displayed.
7. Click Finish again. The draft credit supplier invoice is displayed.
   TIP:  The supplier invoice and the purchase credit invoice look very similar and function in the same way. To help you differentiate which type of invoice you are viewing, note that a supplier invoice uses a yellow background color and a purchase credit invoice uses a green background color. Additionally, a purchase template uses a grey background. 
8. Review the purchase credit invoice and make changes to the line items so that it equals the amount to be credited. (The credit invoice works similarly to the supplier invoice except that amounts will appear as negative amounts.)
9. Optionally, if you are creating a credit that is inclusive of tax, make sure that you select Inclusive.
10. Click the Save Draft drop-down button and choose Save.
11. Proceed to the next section, "Applying a Credit."

Applying a Credit 

Most users will want to either apply a credit to a supplier invoice to reduce the amount owing on that invoice or apply the credit so that it creates a deposit into the bank account to show a refund (which is described in the next section, "Applying a Credit to a Deposit").

To apply a credit:

1. Complete the steps outlined in the previous section, "Creating a New Credit Supplier Invoice."
2. In the Credit Invoice, click Apply Credit. The Invoice Payment window appears.
3. For the line that represents the supplier invoice you want to credit, enter the amount you want to credit in the Applied field. This should be a positive amount.
4. For the line that represents the credit supplier invoice, enter the amount you to credit in the Applied field. This should be a negative amount.
   NOTE: The two amounts should cancel each other out so that the total applied and the Withdrawal Amount are both zero. You can apply a credit to more than one invoice using the above method.
5. Click Post to post the transaction.

Applying a Credit to a Deposit

Similar to the process for applying a credit to a supplier invoice above, in the supplier invoice payment window, you will see any credit note and invoice that is able to be paid at the date. 

• For a line that represents the credit supplier invoice, enter the amount you want to credit in the Applied box. This should be a negative amount. 
• In the Withdrawal amount field, enter the amount that was/will be placed into your bank account. This should be a negative amount.

Actionstep will treat this as a negative withdrawal (a deposit). A banking transaction will be posted to the bank account and the amount owing on the credit supplier invoice will be reduced by the amount you processed. 

Accessing Previous Credit Supplier Invoices

You can access a list of existing credit supplier invoices. The functionality of this view is very similar to that of the supplier invoice list. See Accessing Supplier or Vendor Invoices for more information.

To do this:

• In Actionstep, go to Accounting > Supplier Invoices > Credit Invoice. The Credit Invoice page appears, showing you all your credit invoices.
  TIP:  Use the Filter drop-down list to more quickly find the credit invoice you are most interested in viewing.