Create Account Based Note – A summary of the activity

A debit / credit note supplements the invoicing function. A debit / credit note facilitates the capturing of financial information based on changes in the quantity, price, taxes, charges or discounts after an invoice has been raised on a customer. A debit note raised on a customer increases the liability of the customer and decreases the liability of the organization that is raising the debit note. A credit note raised on a customer increases the liability of the organization that is raising the credit note and decreases the liability of the customer.

A debit / credit note can be classified as an “Account Based Debit / Credit Note” and an “Item Based Debit / Credit Note”.  An “Account Based Debit / Credit Note” is created for the difference in charges like freight or any overheads that have been incurred while shipping the material to a customer and for write off or write back of credit check.

This activity allows you to create an account based debit / credit note. This activity also allows you to authorize the newly created account based debit / credit note. You can select the documents against which the newly created note can be adjusted. You can view the summary and the posting information for the newly created debit / credit note.

You can modify the payment schedule for a debit note. A payment schedule is generated only for the debit notes. If an electronic payment is to be received from the customer you modify the payment schedule and the electronic payment information. If you want to include any additional comments regarding the debit / credit note you can enter your notes. The system maintains a history of these notes. This activity also allows you to modify the details of the newly created account based debit / credit note if it is in the “Draft” or “Fresh” status.

Getting familiar with the pages inside

What you can do in this activity

Create account based debit / credit note

Authorize account based debit / credit note

Record cost center and analysis details

Select documents for adjustments

Modify payment schedule

Update details for electronic payments

View summary of the debit / credit note

View posting information details

Enter notes

Create account based debit / credit note

An account based debit / credit note is created for variance in charges like freight or overheads that have been incurred after the creation of the invoice or for write off / write back of credit checks. Details required like the customer information and the payment information can be entered. The list of accounts in which the transaction amount must be debited or credited can also be entered. The system calculates the payment schedule for a newly created debit note.

• Go to “Create Account Based Note” page.

• Enter the necessary information and create the debit / credit note.

Authorize account based debit / credit note

Account Based Debit / Credit notes can be authorized immediately on creation. The details of the authorized debit / credit note cannot be modified. The status of the authorized debit / credit is updated as “Authorized”. The payment schedules that have been generated for the debit / credit note cannot be modified.

• Go to “Create Account Based Note” page.

• Enter the necessary information and authorize the debit / credit note immediately on creation.

Record cost center and analysis details

The details of the debit / credit amount is updated in the corresponding account as required. A cost center is mapped to these account heads. Budgets can also be set to control and analyze these accounts. The analysis of the budget against the actual for these accounts can be done with the analysis codes that are mapped to the account.

• Go to “ Create Account Based Note” page.

• Enter the cost center and analysis details required.

Select documents for adjustments

The account based debit / credit note can be adjusted against an existing debit / credit document. A debit note can be adjusted against a credit note, prepayment invoice, order based invoice or a direct invoice. A credit note can be adjusted against a debit note. The documents against which the debit / credit note must be adjusted can be selected and adjusted. A debit / credit note can be adjusted after it has been authorized.

• Go to “Adjustment” page.

• Search and select the documents against which the debit / credit note must be adjusted.

Modify payment schedule

A payment schedule gives you the pattern of in-flow of cash for a debit note. The system generates the payment schedule based on the default pay term set for the customer. The payment schedule can be modified based on the business requirements of the organization. The payment schedule can be modified provided the debit note is in the “Draft” or “Fresh” status. The payment schedule is frozen when the debit note is authorized.

• Go to “Payment Schedule” page.

• Make the required changes and generate a new payment schedule.

Update details for electronic payments

Electronic payments can be received through the ESR or ESR+ methods, LSV methods and through a specific bank or PTT. Electronic payments can be received provided both the participating banks have the unique participation or contract Ids. The banks and the accounts through which the transaction occurs will be based on the definitions made in the “Customer” business component. These settings can be modified if required. Payment information also contains the payment schedule for the debit note.

• Go to “Payment Information” page.

• Modify the bank details and the payment schedule if required.

View summary of the debit / credit note

The summary of the debit / credit note contains the details of the debit / credit note along with the details of the payment received and the details of the adjustments that have been made. The receipt details can be viewed if a payment has been received for the debit note that has been created. The adjustment details will be available after the adjustment has been made.

• Go to “Note Summary” page.

• View the details of the debit / credit note, receipt and adjustments made.

View posting information details

The debit / credit note amount is either debited or credited into different account heads. The various postings that occur for a debit / credit amount can be viewed account wise in both the base currency and the parallel base currency of the company.

• Go to “Accounting Information” page.

• View the account posting details.

Enter notes

Observations or comments that have to be recorded regarding the debit / credit note can be entered. The system maintains the history of the notes.

• Go to “Attach Note” page.

• Enter the required comments.