Purchase Credit Note

 
Welcome to AlignBooks. We are happy to have you on board. In this help studio tutorial, we will explore the Purchase Credit Note (Debit Note raised by the Vendor) preparation options.
 
Before we begin, let us understand about the need of Purchase Credit Note Entry and the relevance of this particular activity.
 
If your vendor makes a mistake at the time of preparing an Invoice resulting in under invoicing e.g. rate under charged, allowed excess discount etc., either your vendor would raise a Debit Note on you or you need to rectify it by issuing a credit note. Practically, under this module you enter the debit notes issued by your vendor.
You can create a Purchase Credit Note under Module in AlignBooks.
 
The key functions of Purchase Credit Note Module are:
·     Creation of a New Purchase Credit Note,
·     Modification of an existing Purchase credit Note;
·     Deletion of an existing Purchase credit Note.
 
 

Configuration

AlignBooks provide you the facility to configure your Purchase Credit Note documents with respect to choice of linking with parent document, choice of maintaining multiple series of documents, choice of sending Email and SMS on creation/edit/approval of the document and for Approval System setting etc. Click on button to configure this document. Click here  “How to Configure a Document”,  to know more about this utility. 
 
Purchase Credit Note
 
Let’s now understand how to create a new Purchase Credit Note in simple steps
 
You have three ways to prepare a Purchase Credit Note;
·     Enter fresh data for the first time;
·     Open an existing document and use the “Copy” feature of AlignBooks to make the necessary changes. This will save your time and efforts;
·     If you have data in an Excel Format, Import data and make the required changes.
 
Let’s enter the fresh set of data for the first time;
 
1

GST Type

1. GST Type: If you are registered in GST and select the relevant option from the drop down list. Options for Selection are :
Tax Invoice - > In this type of Purchase it includes all Interstate and Intrastate Supplies from Registered Person except Import / Bill of Supply / Non-GST Supplies.  
Import - > Import Purchase which are supplies received from Overseas Party. In this case the Tax rate is calculated as per Item HSN Code and separate financial posting for tax amount is created for Input Tax Credit (IGST) and Provisional GST Liability on import.
Reverse Charges - > When Supplies are received from Un-Registered Dealer / Services from Ecommerce Operators / Supply received for specific goods which do not attract tax amount in Invoices are liable to be paid by the receiver under Reverse charge mechanism. Separate Financial posting for Input Tax Credit and Output Tax liability will be created.
Bill of Supply - Compounding - > All Supplies which are received from Dealer under Composition scheme. No input tax credit can be taken against such purchases. 
Bill of Supply – Unregistered - > All Supplies which are received from Unregistered Dealer. No input tax credit can be taken against such purchases.
Bill of Supply – Exempted - > All Supplies which are received for Exempted Goods/Services then reverse charges are not applied. No input tax credit can be taken against such purchases.
Bill of Supply – Nil Rated - > All Supplies which are received for Nil rated Goods/Services then reverse charges are not applied. No input tax credit can be taken against such purchases.
Bill of Supply – Non-GST - > All Supplies which are received for Non-GST Goods/Services like Petrol/Diesel etc. where No input tax credit can be taken against such purchases.
Branch Transfer-> Branch Transfer Purchase is for the Material transfer from one Branch to Another Branch when both branches are not in same state i.e. interstate transaction.
This field is available only if you have configured Tax Applicable in Sales Purchase - "GST” in General Setup.
2

Location / Branch

2. Location / Branch: Under this field, You can select the location, if you are handling Multi Locations. System will ask for this information only if you have configured Multi Locations - "ON” under General Setup and System will fill the default Location if you have configured the Default Location under Data Access Rights. 
If your desired Location does not exist in the menu, you can create a New Location by clicking on  option within the dropdown menu. You can also Edit or Delete a Location from Here. Select a Location to be edited / deleted and then click on . The Location will be opened in Edit mode and you can edit it and save by click on  . You can delete it by click on . 
3

Category

3. Category: If you are want to classify your document in different categories, select the applicable category from the drop down menu. For Example if you want to maintain brand wise classification of Invoices you can create brand names in category.
This field is available only if you have configured Document Classification – "ON” in Purchase Setup. 
You can Add, Edit or Delete a Category by following the process described under Location Tab.
4

Vendor

4. Vendor: Select a vendor from the drop down list for whom you are preparing Purchase Credit Note. 
You can Add, Edit or Delete a vendor by following the process described under Location Tab.
5

Email

System will auto pull the email Id from vendor master. If you wish to change the same, you can do that here.
If you have configured enabled to send Email in Document Configuration and this field is blank then system will not Email to vendor.
6

Currency

6. Currency If you are preparing Purchase Credit Note in a foreign currency, select a Currency from the drop down menu.
This field is available only if you have configured Multi Currency : "ON” in General Setup. If your desired currency does not exist in the menu, you can add a new currency by clicking on   Icon or option within the dropdown menu.
7

Conversion Rate

7. Conversion Rate Under this field, System will automatically get the conversion rate from currency master, if already created by you. If you wish to change the currency conversion rate for this  particular document, you can do the same here.
8

Date

8. Date: Enter the date which you wish to reflect in the document. By default, the system will take the current date. You can also pick a different date by just clicking on the calendar function
9

Sales CN No

9. Sales CN No : System will generate voucher number based on the Voucher Numbering configuration, if you have opted to maintain "auto prefix” and “auto numbering”.
Prefix :  While configuring your document, if you have opted to “maintain manual prefix”, select a prefix from the drop down list. If the required prefix does not exist in the list, you are able to create a new one by clicking on   Icon or  option within the dropdown menu and input a name. This field will not be available if you have opted "Not required".
Number:  While configuring your document, if you have opted to “maintain manual numbering”, enter a document number here.
10

Reference No

10. Reference No: Here you may enter the vendor or previous document number, if any.
11

Reference Date

11. Reference Date: Here you may enter the reference document’s date. By default, the system will take the current date. You can also pick a different date by just clicking on the calendar function.
12

Agent / Broker

12. Agent / Broker: System will auto pull the Agent name from vendor master. If you wish to change the same, you can do that here.
If the required agent does not exist in the menu, you can create a new by clicking on  Icon or  option within the dropdown menu.
This field is available only if you have configured Agent wise Billing : "ON” in Purchase Setup.
13

Tax Type

13. Tax Type: Under Purchase Setup, If you have configured Tax in Rates to "Inclusive" / "Exclusive" then System will fix the type and change will be not allowed at the time of entry. System will calculate taxable value and taxes based on the configured Type .
This field will be active only if you have configured Tax in Rates : "Document Based” in Purchase Setup. System will auto pull the Tax Type from vendor master. Also in this case, You can change the type and select “Inclusive” from the drop down menu, if rates are inclusive of taxes otherwise select “Exclusive”.
This field is available only if you have configured Tax Applicable in Sales / Purchase : "ON” in General Setup.
 

Billing Information

: System will trace and fill the Billing Address, GST No. and Contact person details automatically from the vendor master.
 
14

Address

System will fill the complete Billing Address (Address, City, State PIN, Country) automatically from the vendor master. You can make changes during this stage as well.
15

GSTIN

System will fill the GST Number automatically from the vendor master.
16

Contact Person

Here System will fill the Contact Person Name from the vendor master. You can make changes during this stage as well.
17

Place of Supply

Place of Supply has special relevance in the calculation of GST Tax, if the Place of Supply state is the same as the Business State then it will be considered as Intra-State Supplies (where CGST and SGST Tax are Applicable) otherwise it will be considered as Inter-State supplies (where IGST Tax is Applicable).
 

Shipping Information :

System will trace and fill the Shipping Address details automatically from the vendor master. You can make changes during this stage as well.
 
18

Select Address from List

System will display a list of previous entered Shipping address, you can select the delivery/shipping address as desired.
19

Address

System will fill the complete Shipping Address (Address, City, State PIN, Country) automatically from the vendor master. You can make changes during this stage as well.
20

Payment Terms

System will trace and auto fill the Payment Terms from the vendor master. You can make changes during this stage. If the required Payment Term does not exist in the menu, you can create a new payment term by clicking on   Icon or  option within the dropdown menu.
21

Due Date

Based on payment term selected, the system will auto calculate the payment due date. If you are not maintain payment terms, you can enter the payment due date here.
22

DN / CN return Reason

Select the relevant option from the drop down list which specify the purpose of making the Purchase Credit Note.
23

Scan / Lookup

23. Scan / Lookup : This option will work like a Bar Code. If you enter an item Code, the system will pick-up the relevant details automatically.
24

Pull From Document

24. Pull From Document : This field is used to import data from the parent document. Upon selection, a list of parent documents will be on display.
If there is no parent document linked, this option will not be “visible”.
25

Item with Balance

25. Item with Balance : This option will work like a Pick and Pack, Click on this button to show panel with List of Item with Stock Balance, HSN and Item Group. User can filter the Group and select Multiple Items when you click on OK button, all selected items will fill automatically to Item Grid at once.  
 
So far we have entered the relevant details to clearly identify the vendor and the Purchase Credit Note.
 
 
26

Item Detail Table

Here We will now enter the specific item or product details to generate a Purchase Credit Note.
 
: Click here to add a Row to the table
: Click here to delete a row from the table.
Group Name: Select an Item Group from the drop down list. The Item code list will display the items mapped under the selected group.
This field will be available when the Item Selection : "GroupLevel" in Inventory Setup.
Item Code: Select an Item code from the drop down list. Click on  to add a new Item.
Description: System will fill the description details automatically from Item Master.
Unit: System will fill the unit details automatically from Item Master.
Quantity: Enter the Item Quantity here.
Rate: System will pick the rate from the Item Rate Master. If you are not maintaining Rate Master and have entered Rate in your Item Master, it could be picked from there as well. Alternatively, you will have to enter the rate manually.
Amount: System will calculate the Amount automatically i.e. with the multiplication of Quantity x Rate.
Posting GL: If you have created Sales /Purchase Ledgers Item wise, the system will automatically fetch the GL selected by you in Item Master.
Remark :  If you wish to put any remark against an Item, enter here.
Item Balance :  System will display the Stock in hand of this particular item.
 
         
The table is dynamic and many extra columns in the table would appear based on your Configuration in Company Setup. If you set up these fields, you will need to enter relevant values in columns created for each item Row.
 
The columns which will appear based on Configuration in Company Setup are:
Column Name
Field Description
(Condition for Applicable / Appear)
Tax Code
System will trace and fill the latest Tax code which is mentioned in HSN Code which is selected in the Item Master. If You want to change the same then select a Tax code from the drop down list. Click on  to add a new Tax Code.
(General Setup – Tax Applicable in Sales / purchase – “ON”)
Tax Rate
System will auto pull the Tax rate mentioned in the Tax Code mentioned in the above field.
(General Setup – Tax Applicable in Sales / purchase – “ON”)
Taxable
System will calculate the Taxable amount based on the Tax Type selected in document.
(General Setup – Tax Applicable in Sales / purchase – “ON”)
Tax Amount
System will calculate the Tax amount based on the Tax Type selected in document.
(General Setup – Tax Applicable in Sales / purchase – “ON”)
Cess Rate
System will auto pull the Cess rate mentioned in the HSN Code mentioned in the above field.
(General Setup – Tax Applicable in Sales / purchase – “ON”)
Cess Amount
System will calculate the Cess amount based on the Tax Type selected in document.
(General Setup – Tax Applicable in Sales / purchase – “ON”)
Pack Unit
If Separate Pack Unit property enabled in selected Item, System will auto pull the Pack Unit from Item Master. If you wish to change the same then select unit from the drop down list. Click on  to add a new Unit (Not recommended if registered under GST as UQC are predefined under GST).
(Inventory – Separate Packing Unit – “ON”)
Pack Quantity
Enter the quantity of Pack unit and system will calculate the quantity of Stock unit automatically based on the StockvsPack mentioned in Item Master. Only if this field is empty then pack quantity will auto populate if directly quantity is entered in Stock Unit.
(Inventory – Separate Packing Unit – “ON”)
Print Description
System will auto pull the Purchase Description from Item Master. If you wish to change the same, enter the new description.
(Inventory – Separate Print Description – “ON”)
Item Serial No.
If Serial Tracking property enabled in selected Item, Click on the Icon to open a new window to enter the details of Serial Number / IMEI, the total quantity of the input will fill in quantity of Stock Unit. Click here Input Panel - Serial to know more about this utility.
(Inventory – Item Serial No Tracking– “ON”)
Batch No.
If Batch Wise Inventory property enabled in selected Item, Click on the Icon to open a new window to enter the details of Batch detail, the total quantity of the input will fill in quantity of Stock Unit. Click here Input Panel - Batch to know more about this utility.
(Inventory – Batch wise Inventory -–“ON”)
Service Date
Enter the Date of Service. You can also pick a different date by just clicking on the calendar function.
(Inventory – Input Service Date – “ON”)
Service Location
Enter the Location of Service.
(Inventory – Service Location – “ON”)
 
User Defined
Item Wise Charges
 
(Purchase Setup – Billing Setup – Item Level)
 
 
Attributes 1-5
 
(Inventory  – Item Attributes)
 
User Defined
 
 
 
 
27

Attribute Panel

27. Attribute Panel In Inventory Setup if Print Description / Item Document Attribute / Item Custom Fields are enabled , System will open a new Input Panel to enter the details of applicable fields Or Click on the Icon to open the Input Panel, the input of all fields will be transferred to Item Grid Table. This Input Panel feature helps to reduce the unnecessary scrolling in Item Grid to input detail of the mentioned fields. Click here Input Panel - Attribute to know more about this utility.
28

Bundle Item Panel

28. Bundle Item Panel If selected Item is Bundle Item and Show Bundle Detail on Billing is enabled, System will auto populate the Item details based on the child items Or Click on the Icon to open the Input Panel to change Child Item details, the total quantity and average rate of the input will fill in quantity of Stock Unit and rate field. Click here Input Panel - Bundle to know more about this utility.
29

Add New Row to Table

29. Add New Row to Table Click this button to add new row.
30

Magnify Row

30. Magnify Row: Click on the button to Magnify the Item Grid Table for better accessibility for voucher entry. A new pop up window will open which will have the same Item table but with better visibility of Item Details as only Item Table is present on this window.
31

Remarks

31. Remarks: Input here any remark pertaining to the document.
32

Attachment

32. Attachment : Here you may upload any supporting documents, which can be used for the future reference. For example, you may scan and attach a copy of Credit Note. You can browse the location to attach the same. Click on “X” to remove the attachment.
33

User Defined Fields 1-5

During the Purchase Setup if you have selected user defined fields (Purchase Custom Fields), these will appear with the Caption provided by you for these extra fields. You may enter the relevant values/data in the applicable field.
34

Item Value

34. Item Value: System will calculate the Total Item Purchase Value, based on the data fed in the system during the creation of an Purchase Credit Note.
35

User Defined Extra Charges/Discounts – Item level (1-3)

35. User Defined Extra Charges/Discounts – Item level (1-3): These represents the total of item wise extra charges/discounts auto calculated from the items mentioned in the table.
36

Taxable Amount

36. Taxable Amount: This represents the total Taxable Purchase Value of all the items, auto calculated by the system.
37

Tax Amount

37. Tax Amount: This represents the total Tax Amount for all the items, auto calculated for the Items mentioned in the table.
38

Cess Amount

38. Cess Amount: This represents the total Cess Amount for all the items, auto calculated for the Items mentioned in the table.
39

User Defined Extra Charges/Discounts – Document Level (1-3)

 If you have set to have any Extra Charges / Discount on Document level (Billing Setup- Document Level), these will appear hear with the caption given by you. You can enter relevant value against each item.
40

Round Off

40. Round Off: Depending upon the round off level selected by you, your Document will be rounded off and the round off difference (Rounded Value - Actual Value) will be shown here.
This field will not be available if you have configured Round off – "None” in Purchase Setup.
41

Document Amount

41. Document Amount: This represents the total Credit Note Amount.
 

Attributes :

This field is available only if you have selected to use Attributes in Finance Setup
 
42

Attribute

This field is available only if you have selected to use Attributes in Finance Setup and the a GL where attribute is linked is effected by this Invoice. For Example if you have allocated an attribute with GL “Delivery Charges” and an amount is going to be debited / credited by creation of this Invoice, the system will ask to select an attribute to be linked with Delivery Charges.
 

TDS Section :

This section will be available if the TDS Applicable : "ON" in Finance Setup. This section will be available if the TDS Applicable : "ON" in Vendor Master.
 
43

TDS Section

43. TDS Section: System will trace and fill the TDS section from the vendor master. You can make changes during this stage as well.
44

TDS Ledger

44. TDS Ledger : System will fill the Default ledger for TDS Payable which is mentioned in Default Ledger in Finance Setup. You can make changes during this stage as well.
45

Gross Amount

45. Gross Amount : System will fill the Gross amount on which the TDS will be calculated. You can make changes during this stage as well.
46

TDS Section Rate

46. TDS Section Rate : System will trace and fill the Rate % of the TDS section selected.
47

TDS Amount

47. TDS Amount : System will calculate the TDS Amount automatically i.e. with the multiplication of Gross Amount x Rate %.
48

Save Voucher

48. Save Voucher : Click on the button to save the document prepared by you.
49

Print Voucher

49. Print Voucher : Click on this button to save voucher and Print the document prepared by you. Click here  “Print Utility”, to know more about this utility.
 
 
You have completed creation of New Purchase Credit Note. 
 
50

Clear Detail

50. Clear Detail : Before clicking this option make sure that the data entered is no more required by you; the moment you click on this option the system will erase all the data and give you an empty screen to enter fresh data.
51

Mail / SMS

51. Mail / SMS : Click on this Button, If you want to send a Email (with Attachment). Click on  beside Mail and click on Email Link (Email with Link included for Document Print) or click SMS.
52

Schedule Document

52. Schedule Document : If you want to create a schedule for this document, click on . Click here  “Schedule a Document”,  to know more about this utility.
53

Document History

53. Document History : Click here to know the History of the Document for date and time of creation / modification / delete / cancel / restore. This button will be active only when document is open an existing document and when Manage Document History : “ON” in General Setup.
54

Import Voucher (Excel File)

54. Import Voucher (Excel File) : Click on this button to Import Data and select a file from which Data is to be imported. Click here “Import Utility”, to know more about this utility.
55

Open Document

55. Open Document : Click here to open an existing Purchase Credit Note Voucher. Click here  “Open a Document”,  to know more about this utility.
56

Delete Document

56. Delete Document : If you wish to delete any existing Purchase Credit Note Voucher, open an existing voucher and specify the reason for delete in "Edit Remark" field then Click on this button to delete the Voucher.
57

Copy Document

57. Copy Document : Click here to copy the values from an existing Purchase Credit Note Voucher. Click here “Copy from a Document”,  to know more about this utility.
58

Cancel Document

58. Cancel Document : If you wish to cancel any existing Purchase Credit Note Voucher, open an existing voucher and specify the reason for cancel in "Edit Remark" field then Click here   to Cancel the Voucher. when you cancel a document then document status will update as "Cancel" and All financial / stock impact (whichever applicable) will reverse for this voucher.
59

Restore Document

59. Restore Document : If you wish to restore any existing Purchase Credit Note Voucher, open an existing voucher and specify the reason for restore in "Edit Remark" field then Click here to Restore the Voucher. when you Restore a document then document status will update as "Open" and All financial/stock impact (whichever applicable) will be restored for this voucher.
 
 
We hope you enjoyed this tutorial. Please give us a call for further help.  Happy Aligning!
 
 
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