How do I record a credit received which reduces the payment made to the supplier?

If a supplier has issued you a credit note but it is being deducted from the next payment rather than being paid back to you, there are two options with how to deal with this:

• Show both the payment and credit on the same transaction

Enter a payment in the usual way as per the invoice received. Add a further line for the amount being credited with the amount as negative. Ensure the total of the payment matches to the amount being paid to the supplier. Notes can be added to reference the credit being deducted.

• Enter the payment and credit note as separate transactions

Enter a payment transaction for the invoice received and a negative payment transaction for the credit note. Both should be dated the date of the payment being made. When the payment is made for invoice less the credit note the amount on the bank statement can be reconciled against the two transactions on Scribe. The net of the two must equal the amount paid out.


IMPORTANT

If you receive a credit note from a supplier and the amount is to be deducted from a future payment the credit note should only be entered at the date at which the payment is made to the supplier (and therefore the credit is realised).

I&E Councils

If the council has received a credit note from a supplier where the credit has not been paid back or fully offset against a future payment by the Year End then a negative creditor adjustment can be added.