[Solved] How to edit "Credit Note Types"?

[MacPhotoBiker]

Hi,

I'm trying to create a customer credit note. They did a marketing campaign with the products I'm selling to them, and we agreed to share the costs for this campaign.

Since the c/n does not refer to a particular article, I set up a service article called something like "Marketing Support".

Now, when I try to create the credit note, I'm only offered 3 types:

- Goods returned to store
- Goods written off
- Reverse an overcharge

But none of them applies. "Reverse an overcharge" would be the closest, but it implies that there was an error, which is not the case.

Therefore, I'd like to add a new Credit Note Type, and I would have expected to find the settings under the "Setup" menu, but I couldn't locate it.

Could somebody please help me out?

Thanks in advance!

[phil]

Hi MacPhotoBiker,

The trick here is to set up your item Marketing Support as a "service item" - by definition there is no stock maintained of such items. Then you can create a normal credit note with "Goods Returned To Store" - but since there are no goods with a service item this is a non-issue - a little misleading - but this is the way you would do it.

Also, in defining the item "Marketing Support" you need to make it belong to a stock category and the sales GL Posting for that stock category defined such that it gets posted to the advertising/promotion gl account rather than sales. I set up a few Z inventory categories for this purpose.

[MacPhotoBiker]

Hi Phil,

thanks a lot for guiding me in the right direction. I particularly thank you for pointing out the topic related to GL postings. You are completely right, such credit note should not decrease sales, but increase expenses.

That's just another confirmation why I do like webERP: It's not "just an accounting program", but there's a lot of business experience in it.

Great stuff, thank you very much.

[phil]

Very nice to have such an appreciative "customer" :-)
I know you will be a great addition to the "team"

[MacPhotoBiker]

Thank you for your kind words Phil, I'm certainly happy to be "on board".

[MacPhotoBiker]

Sorry Phil,

I have to open this topic again since it did not quite work out as I thought it would. My problem is that the credited amount is posted on acount "4100 Product/ Service Sales" rather than on the corresponding expense account "6160 Sales Support"

Here's what I did:

1) Set up a Stock Category "Sales Support" (which should hold basically commissions I'm paying to somebody).
Stock Type: Finished Goods (I also tried "Dummy Item")
Stock GL Code and WIP GL Code: Petty Cash (1010) - Here I'm not quite sure what to choose, and it might be the reason why I'm getting an unexpected result. Only Balance Sheet accounts are selectable, which is probably to avoid that guys like me pick an expense account here, but still I'm not sure which one to pick, so I left the default "Petty Cash".

All remaining accounts (Stock adjustments,..., Usage Variance): The newly created "6160 Sales Support"

Then I set up an item "Sales Support"
Category: "Sales Support" (as described above)

Assembly, Kit,...: Purchased (also tried "Service/ Labour)
Tax Category: Taxable supply
I believe none of the other settings are relevant.

Then, I create a credit note for this article, and choose "Credit Note Type: Goods to be returned to store", and process it.

Now, when I check the Trial Balance, the credited amount is being posted on account "4100 Product/ Service Sales", rather than on "6160 Marketing Support".

I'm sure I'm doing something wrong, but I was unable to figure out what it is, particularly because nowhere in the settings did I chose account 4100, so I believe this must be a default value (maybe "hard coded"? )

In a nutshell, what I was trying to achieve is a posting like this:

DR 6160 Sales Support
DR 2310 Tax Recoverable
CR 1100 Accounts Receivable

Could you please help me out?

---

Thank you Tim for giving me the final push in the right direction!

For the record, what I was missing is this:

Under "Setup -> Sales GL Interface Postings" one can decide for each stock category to which account the transactions should be posted. Under "Post Discount to GL account" I chose my "6160 Marketing Support". I did a test and the credit note shows now in the correct account.

(Note: Actually I also chose "6160 Marketing Support" as SALES account. Usually there would not be any sales on this account anyway, and IF, then this would mean that some expenses are "charged back", hence decreasing expenses anyway, which I believe is correct).

[phil]

I can see where you are missing .... the stock category set up is to do with the stock postings ... the balance sheet accounts for stock value and work in progress and the variance accounts for usage and price variances. These accounts are all redundant for service items as there is no cost (or physical stock) associated with a service item.

The bit you are missing is where the GL Postings for sales are defined in

http://www.weberp.org/weberp/SalesGLPostings.php

This allows you to specify the GL account by a number of variables - of which one is the stock category.

if there is stock involved then you would also need to set up

http://www.weberp.org/weberp/COGSGLPostings.php

[MacPhotoBiker]

Excellent Phil, thank you very much! Another two dots connected

[phil]

There isn't much detail in the manual about this so I can see why you missed it ...

http://www.weberp.org/weberp/doc/Manual/...GLPostings

[MacPhotoBiker]

Thank you Phil for the link. Frankly, I can't blame any missing information in the manual - I didn't even check it But to my defense, not because of laziness, but because I didn't even know what to look for. This particular issue was certainly non-standard, that's why this forum is helpful, it helped me to got a better conceptual understanding of webERP.

Thank you very much.