SAP B1 blog

the exit credit is a tool in the SAP Business One sales process. It enables, returnsto correctly record and process incorrect services or goodwill cases for accounting purposes.

Reasons for creating an outgoing credit note

1. Return of goods:
   • When a customer returns goods, an outgoing credit note is issued to refund the purchase price.
2. Faulty services:
   • In the event of defective services, a credit amount to credit the corresponding amount.
3. Goodwill credits:
   • Outgoing credit notes can be used as a gesture of goodwill, e.g. for products with defects, to compensate customers for any inconvenience caused.

Effects on inventory quantity and general ledger

• Stock:
  • The outgoing credit increases the available Stocks.
• ledger:
  • Amounts are credited to the customer accounts, while the revenue account is adjusted accordingly.
  • Tax amounts are automatically adjusted.

Types of outgoing credits

1. Based on an outgoing invoice:
   • Refers to an outgoing invoice that has already been created.
2. Based on an initial forecast:
   • Refers to a previously created initial forecast.
3. Without base document:
   • Credit notes can also be created without reference to a previous voucher.

Other important aspects

• Immutability of documents:
  • Legal requirements prohibit changes to delivery notes, outgoing invoices and outgoing credit notes as soon as they have been entered in SAP Business One.
• Credit notes with zero amount:
  • A/R credits with an amount of zero are useful, for example, to record free items or products covered by service contracts.
• Management of advance payments:
  • When creating an A/R credit memo based on an A/R invoice, copied down payment requests or invoices can be processed.