An Adjustment Note usually occurs when goods are returned for credit, or there is a dispute with a customer that results in a negotiated reduction in an account.
In other words, an adjustment note applies a credit to an account. In fact, they used to be called ‘Credit Notes’ but the GST Legislation requires the term ‘Adjustment Note’ to be used.
Select the customer from the Customer List, and click the [Adjustment Notes] button.
The Adjustment Notes List has two views: This Month’s Adjustment Notes, and All Adjustment Notes to select from. You can also choose to include Overpayments in the list by ticking the Show Overpayments checkbox.
To view an existing Adjustment Note, select it from the list and click the [View/Edit] button. You cannot edit an Adjustment Note that has been assigned.
To add a new Adjustment Note, click the [New] button.
The top left corner displays the Customer Code and Company Name. Underneath this is the Adjustment Note Number. The next numerical sequenced number is generated, but can be changed by typing the new number in the box.
The Adjustment Date displayed at the top of the next column defaults to today’s date per the computer, but you can change this as necessary.
Next is the Invoice Number. Click on the drop-down arrow to choose the Invoice Number the Adjustment Note will be assigned to. All Adjustment Notes must be assigned to an invoice. When chosen, the Invoice details will appear in the bottom left corner.
Choose the Adjustment Type from the drop-down arrow.
There are three Adjustment Types:
- Assign to Invoice is used to reduce the amount of an invoice that has a balance outstanding. If the amount of the Adjustment Note exceeds the balance outstanding, when you click on the [Assign] button a message will advise to select either the [Write a Refund] or [Assign a Credit] and click on the [Assign] button again. This will advise what to do with the excess balance.
- Write a Refund reduces the balance owing on an invoice and refunds the surplus to the customer. Note: the payment to the customer needs to be recorded manually in Cashflow Manager.
- Assign a Credit can be used the same way as a refund, but instead of refunding the surplus to the customer, you hold it in credit to apply to future or other outstanding invoices. In the Type drop-down box, choose the [Assign a Credit] option.
You can allocate a Reference Number if required. Beneath that the Customer Type and Job Number details from the invoice will be displayed.
Record the items that apply to the Adjustment Note.
Record or select a message under the Items work area if required.
When finished, click the [Save] button to save the Adjustment Note for later use, or click the [Assign] button to finalise and assign the Adjustment Note.
Click on the [Print] button to print the Adjustment Note. You can also save as an Excel, PDF or email the Adjustment Note.
Please Note: If the amount of the Adjustment Note is less than or equal to the balance remaining on the selected invoice, the adjustment will be deducted from the invoice. If the amount of the Adjustment Note is greater than the balance remaining on the selected invoice, then the balance remaining on the invoice will be reduced to $0.00. The surplus can either be refunded to the customer or added to the customer’s credit balance by selecting the appropriate Adjustment Type option.
Unassign / Delete an Adjustment Note
You can delete an Adjustment Note that has been saved but not assigned. An Adjustment Note that has been assigned to an invoice can be unassigned for editing or removal.
To unassign and/or delete an Adjustment Note, click on the [Adjustment Notes] button next to the Customer List and click on the [Unassign] or [Delete] button as appropriate. (An Adjustment Note needs to be unassigned in order to delete it.)