Credit Notes are available as an optional feature. By default, the feature is disabled after upgrading and must be enabled by the Dispatch Science Support team.

Before Credit Notes can be enabled, any custom Transaction Reports must be updated to support the new transaction type.

Note: Default Transaction Reports included with Dispatch Science already support Credit Notes and do not require any modifications.

Enabling Credit Notes

To enable the Credit Note feature:

1. Contact Dispatch Science Support and request that Credit Notes be enabled for your environment.
2. If you use any custom Transaction Reports, provide Support with a list of those reports.
3. Support will review the reports and provide a quote for updating them before the feature is enabled.

Default Reports Supporting Credit Notes

The following standard reports are already compatible with Credit Notes:

• AR Aging Detail by Customer
• AR Aging Detail
• AR Aging Summary
• Statement
• Adjustment
• Reconciliation
• Statement with Transactions
• AR Aging Detail (CSV)
• Transaction List

A default Credit Note Report Template is automatically installed when the Credit Note feature is enabled. This template must then be assigned to the appropriate customer accounts.

Configure the Credit Note Report for an Account

After Credit Notes have been enabled, assign a Credit Note template to each account that will use the feature.

Steps

1. Navigate to Accounts.
2. Open the desired account.
3. Edit the Billing Options section.
4. Locate the Credit Note Template field.
   • This field appears directly above Debit Note Template.
5. Select the default Credit Note template or a custom template that has been created for your organization.
6. Click Save.

Configure Accounting Items

Credit Notes share the same Accounting Item structure as Debit Notes.

If your existing Debit Note Accounting Items meet your requirements, you can reuse them. Otherwise, create additional Accounting Items specifically for Credit Notes.

Create an Accounting Item

1. Navigate to Settings > Configurations > Accounting > Accounting Items.
2. Click New Accounting Item.
3. Complete the required information.
4. Set the Type to Debit/Credit Note.
5. Click Save.
6. Repeat as needed for additional Accounting Items.

Configure the Accounting Profile

Once your Accounting Items have been created, assign them within the Accounting Profile.

Steps

1. Navigate to Settings > Configurations > Accounting > Accounting Profiles.
2. Open the Accounting Profile you wish to modify.
3. In the Income Postings section, click Edit.
4. Configure the appropriate Debit and Credit Note Accounting Items.
5. Click Save.

Accounting Behavior

When transactions are posted, the accounting entries are created as follows:

Debit Note

• Debit Account → Debited
• Credit Account → Credited

Credit Note

• Debit Account → Credited
• Credit Account → Debited

If taxes are configured on the Credit Note Accounting Item, the associated tax accounts are also debited when the Credit Note is created.

Create a Credit Note

Steps

1. Navigate to Accounts > Transactions.
2. Select New Transaction > Create Credit Note.
3. Select the appropriate Account.
4. Enter the Document Date.
5. (Optional) Select a Document Type.
6. Click Add Item and choose the appropriate Accounting Item.
7. Enter any of the following as required:
   • Description
   • Tax
   • Amount
8. (Optional) Enter a Memo.
9. Click Save.

Important: The amount entered must be a positive value. The Credit Note total will automatically display as a negative amount.

Once created, the Credit Note becomes available to apply toward outstanding invoices as a payment.

Edit an Unapplied Credit Note

Only Credit Notes that have not yet been fully applied can be edited.

Steps

1. Open Accounts > Transactions.
2. Select the Credit Note.
3. Update any of the following:
   • Document Type
   • Accounting Items
   • Taxes (if editable)
   • Amount (if editable)
   • Memo
4. Click Save.

Apply a Credit Note to Outstanding Transactions

Credit Notes can be used when receiving a payment to reduce or eliminate outstanding balances.

Steps

1. Navigate to Accounts > Transactions.
2. Select New Transaction > Receive Payment.
3. Select the appropriate Account.
4. Update the payment date if required.
5. The Payment Method and Reference Number may be left blank when applying only a Credit Note.
6. In the Credits section, enter the amount of the available Credit Note you want to apply.
7. In the Outstanding Transactions section, enter the amounts to apply to each invoice or transaction.
8. Click Save.

The selected Credit Note will be applied to the outstanding transactions, reducing the account balance accordingly.