Create Part Based Note – A summary of the activity
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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 / credit note can also be created when sold goods are returned, goods are lost in transit or when complaints arise on the quality of the goods. 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 “Item Based Debit / Credit Note” is created for variance in part prices, taxes, charges or discounts. A part based debit / credit note can also be created for sales returns, parts lost in transit or any other complaint received from the customer.
This activity allows you to create a part based debit / credit note. This activity also allows you to authorize the part based debit / credit note. The system calculates the tax, charge and discount applicable for the parts. The system also calculates Value Added Taxes (VAT) if it is applicable.
You can modify the tax, charge or discount details for the parts and select documents against which the newly created note must be adjusted. You can also view the summary and the posting information for the newly created debit / credit note.
You can modify the payment schedule of a debit note. If an electronic payment is to be received from the customer you modify the 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
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Create Item Based Note |
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Tax / Charge / Discount |
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Adjustment |
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VAT Calculation |
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VAT Postings |
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Payment Schedule |
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Payment Information |
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Edit Item Based Note |
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Note Summary |
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Accounting Information |
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Attach Notes |
What you can do in this activity
Create part based debit / credit note
Authorize part based debit / credit note
Record cost center and analysis details
Modify Tax / Charge / Discount (TCD)
Select documents for adjustments
Modify calculated Value Added Taxes (VAT)
Update details for electronic payments
View summary of the debit / credit note
View posting information details
Create part based debit / credit note
A part based debit / credit note is created for variance in the prices of the parts, taxes, charges and discount applicable for the part. Details required like the customer information and the payment information can be entered. A search can be carried out to retrieve the reference documents based on which the part based debit / credit note is to be created. The system calculates the payment schedule for a newly created debit note.
Go to “Create Item Based Note” page.
Enter the necessary information and create the debit / credit note.
Authorize part based debit / credit note
A part based debit / credit note can be created in the “Authorized” status if the user who is creating it also has the rights to authorize. 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 and the VAT that has been calculated are frozen and cannot be modified.
Go to “Create Item Based Note” page.
Enter the necessary information and authorize the debit / credit note immediately on creation.
While creating a part based debit / credit note it is mandatory to have a reference document. A reference document could be an order based invoice, direct invoice or a debit / credit note. A search can be carried out to retrieve these documents. The system retrieves all the reference documents based on the search criteria entered.
Go to “Create Item Based Note” page.
Enter the search criteria to retrieve the reference documents.
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 Item Based Note” page.
Enter the cost center and analysis details required.
Modify Tax / Charge / Discount (TCD)
The tax, charge and discount applicable for the debit / credit note is automatically calculated while creating the debit / credit note. This tax, charge or discount can be modified if required.
Go to “Tax / Charge / Discount” page.
Modify the required details.
Select documents for adjustments
The part based debit / credit note can be adjusted against an existing debit / credit document. A credit note can be adjusted against a debit note, prepayment invoice, order based invoice or a direct invoice. A debit note can be adjusted against a credit note. The documents against which the debit / credit note must be adjusted can be selected and adjusted. The newly created 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 calculated Value Added Taxes (VAT)
If VAT is applicable for the parts for which the debit / credit note is being created, the system calculates it automatically. This VAT amount can be modified if required. The VAT is recalculated based on the modifications made.
Go to “VAT Calculation” page.
Modify the VAT.
The VAT calculated for the parts are posted in the relevant VAT account when the debit / credit note is authorized. This posting amount can be modified if required. The corrected posting amounts are then posted in the relevant finance book.
Go to “VAT Postings” page.
Modify the posting amounts.
A payment schedule gives you the pattern of in-flow of cash for the 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 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.
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.