Purchase credit invoices

A purchase credit invoice (ostu kreeditarve) is the supplier's own credit note: they bill you less than they did. It is a vendor bill with negative amounts - it takes the expense and the input VAT back out and reduces what you owe that supplier, or leaves them owing you.

Crediting a bill

1. Open the confirmed vendor bill - paid or not.
2. Choose Enter supplier's credit invoice from the ⋯ menu. A draft opens with the bill's lines at negative quantities, linked back to the bill.
3. Keep only what the supplier credited: delete the other lines, change the quantities, or turn a line into a price reduction.
4. Enter the supplier's credit invoice number and date, attach their file if you have it, and Confirm.

Stock lines: returned goods or a lower price

The sign of the quantity says what happened to the goods.

• Negative quantity - the goods did not arrive, or went back. They leave the warehouse named on the line, taken from that bill's own delivery first, at the cost they came in at. If they have already been sold, confirming is refused: there is nothing left to send back.
• Positive quantity, negative price - a price reduction. Nothing leaves the warehouse and the discount is credited to cost of goods sold. The goods it applies to may be long sold, so their cost is not restated after the fact.

What confirming does

It posts the mirror of a bill: debit Accounts Payable, credit the expense (or inventory) and the input VAT. The VAT return picks up the negative input VAT in its period, and the purchases appendix shows the credit invoice with its negative amounts.

Settling it

• If the bill was still unpaid, the credit is offset against it straight away and the bill shows what is left to pay - or Paid, if the credit covered it.
• If the bill was already paid, the credit stays open as Refund due: money the supplier owes you back.
• Apply to bill offsets an open credit against another open bill from the same supplier.
• Record supplier refund books the money when they pay it back - into a bank account or cash register, clearing their balance.

Every offset is listed on the credit invoice with an undo button, and the original bill lists every credit invoice raised against it.

A credit that belongs to no bill

Volume bonuses and year-end rebates rarely credit one particular bill. Choose New credit invoice on the vendor bill list, pick the supplier and enter the amount as a negative line - quantity 1, price −500 - on the account it should reduce: the expense account, or a “discounts received” account if you keep one. Once confirmed it is open as Refund due, to apply to any of their bills or to record their refund.