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    titon132003's Avatar
    titon132003 Posts: 1, Reputation: 1
    New Member

    Apr 28, 2009, 02:11 PM
    How to record a credit note
    Hi ! Can someone help me with this question.
    How can I record a credit note?
    For example :
    On the 9 of June A returned 9 Cameras that original sold for $2431 each . These item costs $1890 each and were not faulty or damaged. Issued a credit note for $21879.

    Thank you
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member

    Apr 29, 2009, 02:33 PM

    You will have to sets of entries here:

    One will be for Sales Returns
    Debit Sales Returns for the sales price
    Credit Accounts Receivable

    And the other one will be for Inventory return
    Debit Inventory for cost of the merchandise
    Credit Cost of Good Sold
    satyanarayanara's Avatar
    satyanarayanara Posts: 11, Reputation: 0
    New Member

    May 1, 2009, 02:33 AM

    The above question and answer are not clear. While returning goods to the seller the purchaser will return the goods along with a Debit Note. After receiving the returned goods the seller will pass a credit note with the amount of goods sold then the entry will be
    Sales Returns a/c dr
    To the party(purchaser)
    (Being the purchaser credited with the value the value of goods sold)
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member

    May 1, 2009, 06:14 PM

    satyanarayanara, what you just said is even less clear, and incorrect. You have a debit with no credit, and haven't include both entries required. Pready's entries are correct. And I'm not sure at all what "being the purchaser credited with the value of goods sold" means.

    And a purchaser does not have to send a debit note. The not isn't necessary in order to make the entry - it just adds some paperwork for the sake of having paperwork.
    shuhada's Avatar
    shuhada Posts: 1, Reputation: 1
    New Member

    Jan 26, 2012, 10:01 AM
    Once the CN approved:
    Credit-CN Account Receivable

    Then for the new Sales Order:
    -CN Account Receivable
    Credit-Account receivable

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