Add New Purchase Credit

Overview

In Zumzum Financials, a Purchase Credit (often referred to as a Purchase Credit Note) is a document issued by a supplier or vendor when a company returns goods or is owed a refund for a previous purchase. It acts as a reversal or partial reduction of a previously issued Purchase Invoice.

Here’s how a Purchase Credit typically works in Zumzum Financials:

1. Supplier Information: Similar to the purchase invoice, the credit note includes details of the supplier.
2. Reference to Purchase Invoice: It often references the original Purchase Invoice to which it relates, allowing the business to match the returned goods or refund with the original transaction.
3. Reason for Credit: It specifies the reason for issuing the credit, such as returning damaged goods, overbilling, or canceling a service.
4. Items or Services Credited: Lists the goods or services being credited, including descriptions, quantities, and unit prices.
5. Adjustment of Amounts: Reflects the reduction in the amount payable to the supplier, including any tax adjustments.
6. Account Allocation: The credited amount can be allocated to relevant accounts or cost centers.
7. Impact on Accounts Payable: When recorded, it reduces the company’s Accounts Payable and balances out the previous payment obligation.

A Purchase Credit helps the company keep accurate records of transactions, ensuring that returns or overcharges are properly accounted for, ultimately affecting cash flow and financial statements in a transparent way.

You are able to add Purchase Invoices in the same way you add Purchase Credits by selecting the Type field on the new or edit purchase invoice screens.  You are able to programmatically add new purchase invoices to Zumzum Financials using the Purchase Invoice API or other Salesforce automation tools, so this article deals with creating Purchase Invoices in the web interface.

Limits

Purchase Credits are subject to the same limits as Purchase Invoices

• In Zumzum Financials, the maximum number of line items you can include in a purchase invoice is 50. Please review the article What is the Maximum Number of Purchase Invoice Line Items for more information.
• The maximum number of line items which you may pay via the Bank Supplier Payment screen is 50. Please review the article What is the Maximum Number of Line Items That May be Paid Via the Bank Supplier Payment Screen? for more information.

Create A New Purchase Credit From The Purchasing Tab

1. Go to the Purchasing tab.
2. Click Add New Purchase Credit.
3. In the Supplier field, enter the Account name of your supplier or use the lookup button to view a list of suppliers
4. The Invoice Date refers to the day the Purchase Credit was created. This autocompletes with today’s date. You can edit this by clicking the field and selecting a date from the drop-down calendar.
5. The Invoice Due Date is the date by which the Purchase should be allocated.
6. The Type field will auto-select Purchase Credit although you should set this manually if it does not.
7. Complete the other fields as necessary for your Purchase Credit
8. Now you need to add the line items 
9. Firstly enter the Nominal Code and select the nominal account.
10. In the Narrative field enter the name of the product or service from your supplier.
11. Enter the Qty (Quantity), which is the number of this specific item bought.
12. Enter the unit Price for each line item
13. Now select the T/C (Tax Rate) from the drop-down menu, this will automatically be applied to the price to work out the new total.
14. Select Add, in the Options box, this will add the item to the Purchase Credit
15. Repeat Step 9 –> Step 14 for every item on the Purchase Credit.
16. Finally, click Save once all the items are added.
17. When you are happy that your Purchase Credit details are correct, go ahead and Post your Purchase Credit to the Zumzum Financials general ledger.

Create A New Purchase Credit From The Purchase Invoice Tab

1. Go to the Purchase Invoice tab.
2. Click New to add a Purchase Credit.
3. In the Supplier field, enter the Account name of your supplier or use the lookup button to view a list of suppliers
4. The Invoice Date refers to the day the Purchase Credit was created. This autocompletes with today’s date. You can edit this by clicking the field and selecting a date from the drop-down calendar.
5. The Invoice Due Date is the date by which the Purchase should be allocated.
6. The Type field will select Purchase Credit 
7. Complete the other fields as necessary for your Purchase Credit
8. Now you need to add the line items 
9. Firstly enter the Nominal Code and select the nominal account.
10. In the Narrative field enter the name of the product or service from your supplier.
11. Enter the Qty (Quantity), which is the number of this specific item bought.
12. Enter the unit Price for each line item
13. Now select the T/C (Tax Rate) from the drop-down menu, this will automatically be applied to the price to work out the new total.
14. Select to Add, in the Options box, this will add the item to the Purchase Credit
15. Repeat Step 9 –> Step 14 for every item on the Purchase Credit.
16. Finally, click Save once all the items are added.
17. When you are happy that your Purchase Credit details are correct, go ahead and Post your Purchase Credit to the Zumzum Financials general ledger.

Create A New Purchase Credit From The Supplier Account

1. Go to the supplier Account you wish to create a new Purchase credit.
2. Navigate to the Purchase Invoice related list
3. Click New to add a Purchase Credit.
4. The Supplier will be auto completed for you although you may wish to manually enter the account
5. The Invoice Date is referring to the day the Purchase Credit was created. This autocompletes with today’s date. You can edit this by clicking the field and selecting a date from the drop-down calendar.
6. The Invoice Due Date is the date which the Purchase should be allocated by.
7. In the Type field select Purchase Credit 
8. Complete the other fields as necessary for your Purchase Credit
9. Now you need to add the line items 
10. Firstly enter the Nominal Code and select the nominal account.
11. In the Narrative field enter the name of the product or service from your supplier.
12. Enter the Qty (Quantity), which is the number of this specific item bought.
13. Enter the unit Price for each line item
14. Now select the T/C (Tax Rate) from the drop-down menu, this will automatically be applied to the price to work out the new total.
15. Select to Add, in the Options box, this will add the item to the Purchase Credit
16. Repeat Step 9 –> Step 14 for every item on the Purchase Credit.
17. Finally, click Save once all the items are added.
18. When you are happy that your Purchase Credit details are correct, go ahead and Post your Purchase Credit to the Zumzum Financials general ledger.

Create A New Purchase Credit From A Purchase Order

1. Locate and select the Purchase Order you wish to use.
2. Make sure Status field on the Purchase Order is set as Delivered or Part Delivered.
3. In the top right, on the button bar select Create Purchase Invoice.
   • Any data stored on the Purchase Order will be transferred onto the Purchase Credit.
4. In the Supplier field, enter the Account name of your supplier or use the lookup button to view a list of suppliers
5. The Invoice Date is referring to the day the Purchase Credit was created. This autocompletes with today’s date. You can edit this by clicking the field and selecting a date from the drop-down calendar.
6. The Invoice Due Date is the date which the Purchase should be allocated by.
7. The Type field select Purchase Credit 
8. Complete the other fields as necessary for your Purchase Credit
9. All Purchase Order Line Items are loaded in the Purchase Credit Line Items ready for you to edit or add new line items.
10. To add new line items, navigate to the line items table and enter the Nominal Code and select the nominal account.
11. In the Narrative field enter the name of the product or service from your supplier.
12. Enter the Qty (Quantity), which is the number of this specific item bought.
13. Enter the unit Price for each line item
14. Now select the T/C (Tax Rate) from the drop-down menu, this will automatically be applied to the price to work out the new total.
15. Select to Add, in the Options box, this will add the item to the Purchase Credit
16. Repeat Step 9 –> Step 14 for every item on the Purchase Credit.
17. Finally, click Save once all the items are added.
18. When you are happy that your Purchase Credit details are correct, go ahead and Post your Purchase Credit to the Zumzum Financials general ledger.

Create a Purchase Credit using Clone With Liness

Clone an existing Purchase Credit as a new Purchase Credit or Purchase Invoice.

1. Go to the Purchase Credit that you wish to copy and select the button Clone with Liness
2. All the Purchase Credit information and line items will open in an edit Purchase Credit screen.
3. You can now Edit all of the information on the Purchase Credit.
4. In the Supplier field, enter the Account name of your Supplier or use the lookup button to view a list of Supplier
5. The Invoice Date is referring to the day the Credit was created.
   • This autocompletes with today’s date. You can edit this by clicking the field and selecting a date from the drop-down calendar.
6. The Invoice Due Date is the date in which the Invoice should be paid by.
   • Select this by clicking the field and selecting a date from the drop-down calendar.
7. The Purchase Credit Type, will auto select Purchase Credit and should be left like this as a Purchase Invoice is its own feature.
   • You are able to link/complete other fields but they are not necessary to complete the Invoice so at this point go ahead and link the records accordingly.
8. The Purchase Credit Line Items will be loaded from the Purchase Credit you are cloning, ready for you to edit or add more lines.
9. To add new line items, navigate to the Purchase Credit Line Items grid and enter the Nominal Account
   • Tip: use an asterisk “*” as a wildcard in order to increase the search speed.
10. Next, in the Narrative enter the name of the product or service you are purchasing.
11. Now enter the Qty (Quantity), which is the number of this specific item bought.
12. Enter the Foreign Net Amount  and then click outside of the box to update Foreign Tax Total, Foreign Net Total, Foreign Gross
13. Now select the Tax Rate from the drop-down menu, this will automatically be applied to the price to work out the new total.
14. Select to Add, in the Options box, this will add the item to the Purchase Credit
15. Repeat Step 8 –> Step 13 for every item on the Credit.
16. Finally, Click Save once all the items are added.
17. When you are happy that your Purchase Credit details are correct, go ahead and Post your Purchase Credit to the Zumzum Financials general ledger.