IES Purchasing: Credit Note Processing


The purpose of this Document is to explain how to process Credit Note Events on Purchase Orders.

Summary of Order Types

CP = Central Purchasing

ASO = Automated Stock Orders

DDP = Delegated Direct Purchasing

MOD = Manufacture On Demand


Credit Note processing does not occur on all Purchase Orders, and is only processed when

a)     an Actual Credit Note from the Supplier for the Purchase Order is processed

b)     a correction is necessary because of prior Invoice Processing that was done incorrectly (CRN event processing is the alter ego of Invoice Processing, and the only way to correct mistakes with Invoice Processing)

Source Document

Source Documents are primary input to Purchase Order processing. The source document for CRN processing is typically the Credit Note Number as received from the Supplier, and may optionally be supplemented by the Event Status Print for CRN processing (see the User Manual for Purchasing Event Status Prints). In the case of corrections (as opposed to a real CRN), the source document number is locally invented.

Where to Process

CRN Processing is part of what is referred to as Purchase Order Events, and the Purchase Order Events are all processed from the visual Event Screens, where the entire status of a Purchase Order is visible on a single screen.

From the main Purchasing options, choose “Order Event Processing” and then choose the appropriate option for the Order type, i.e. Standard CP/ASO or Indent CP/ASO (pre-paid Orders), or DDP.  MOD Orders must be processed from the MOD Sheets in Manufacture.

Any Purchase Order Events may be processed on this screen, but this document is about Credit Note processing specifically, and as such we will only discuss the CRN events. The CRN event may be processed on any or all Order Items currently showing in the “Invoiced” section. To activate a CRN event, you can either dbl-click on an item in this section, or choose the “Credit Notes” function. The system responds as follows: -

Options 1 and 2 are both CRN events. A Credit Note may be processed on the total Quantity previously Invoiced, or on a reduced Quantity.

We start with option 1: Item Full Credit Note

The next step is to select the Item to process a Credit Note on. Bearing in mind that ‘Item Full Credit Note’ means that the exact Quantity that is shown as Invoiced for the selected Item will be processed as CRN and will be returned to the ‘received section’, i.e. as prior to Invoicing.

Depending on the status of ‘Open Item Matching’ on the Supplier Account, you may be prompted to select the Item to match the Credit Note amount to. Your choice will usually be the same Item as processed for the CRN, but if unsure which Item the Credit Note (which is the equivalent of a Payment Amount) should be matched against, just choose CANCEL.

The system has now automatically generated the underlying financial Transactions to reflect the event in the Purchasing and related Financial systems.

The next option we look at is option 2: Item Part Credit Note

Part CRN is used to credit only SOME of the quantity that is shown as Invoiced. In this case, you will be allowed and forced to reduce the Quantity. Otherwise, the event is similar to ‘Item Full Credit Note’.


If a mistake is made with a CRN processing event, then the way to correct it is to process an INVOICE event, which will return the Order Item to ‘Invoiced’ in it’s previous state. Thereafter the Order Item may be processed correctly. (See the User Manual for Invoice Processing.)



© Infolab, 2006