How to Create Past Customer Credit Notes

Past Credit Notes in QNE Optimum are used to record reductions to Accounts Receivable for returns, discounts, or other adjustments prior to the cut-off date. Recording Past Customer Credit Notes helps maintain accurate AR balances in the customer ledger and supports accurate opening balance records.

This feature is intended for accounting staff managing AR adjustments.

Scenario

Your company needs to record credits or adjustments to customer balances as of the cut-off date. In this way, the system can generate accurate AR balances and correct GL opening balances.

Prerequisites

• Customer master data must exist.

• Accounting period for the cut-off date must be defined.

• The user has permission to create Past Customer Credit Notes.

• Historical customer credit note schedules or migration documents are available for reference.

• Outstanding customer balances have been verified against previous accounting records.

Procedure 1: Recording a Past Customer Credit Note

1. Navigate to Customer > Past Customer Credit Notes.

• Note: If the Quick Create Icon (the one inside the red box) is highlighted, clicking Past Customer Credit Notes will immediately redirect you to the new Past Customer Credit Notes transaction form. If the Quick Create Icon is not highlighted, you will be directed to the Past Customer Credit Notes Listing instead.

• From there, select the New button to create a new Past Customer Credit Note transaction.

2. Select the customer and enter the historical customer credit note details, such as:

• ARCN # 

• Reference No.

• Description

• Doc. Date (Enter or verify the document date for the historical credit note.)

• Amount 

3. Review the entered amounts carefully and save the transaction.

Note: 

• For any created Past Customer Credit Notes and Past Receive Payments, they can be closed or settled by going to Customer Knock-Off to apply document matching to any corresponding invoices or debit notes if applicable.

• If Tax/VAT details are entered for historical reference purposes, the VAT portion does not generate a separate posting to the VAT General Ledger account because only the outstanding receivable balance contributes to the Accounts Receivable opening balance.

4. After all entries are completed, review the reflected opening Accounts Receivable balance in General Ledger > Opening Balances

5. Verify the recorded balances match the historical records.

Procedure 2: Validation of Recorded Past Customer Credit Note

1. After saving the transaction, verify that:

• The Past Customer Credit Note is saved successfully.

• The Past Customer Credit Note number is generated or displayed correctly.

• The transaction displays the correct unapplied customer credit balance.

• Verify that the Past Customer Credit Note appears in the Past Customer Credit Notes List.

Procedure 3: Editing a Past Customer Credit Note

1. Go to Customer > Past Customer Credit Notes, then select the Doc # of the Past Customer Credit Note that you want to update.

2. Once opened, make the required changes, then click Save. 

Procedure 4: Deleting a Past Customer Credit Note

1. In the Past Customer Credit Notes List View, identify the document you wish to delete. Hover your cursor over the document and right-click on it. Then click Delete to remove the transaction.

2. Verify that the Past Customer Credit Note no longer appears in the Past Customer Credit Notes List.

3. Preferred Method: If the Past Customer Credit Note is no longer required, click Cancel instead. This preserves the transaction history while marking it as inactive.

Application (Use Cases)

Past Customer Credit Notes are used to:

• System Migration
  Transfer historical customer credit notes from a legacy accounting system.

• Opening Balance Setup
  Establish accurate customer opening balances during system implementation.

• Customer Transaction History
  Maintain complete historical customer credit records after migration.

• Historical Adjustments
  Record customer returns, discounts, and adjustments that occurred before go-live.

• Accounts Receivable Reconciliation
  Support reconciliation activities during data migration.

• Financial Reporting Continuity
  Improve the accuracy of customer balance reporting after implementation.

System Scope: QNE Optimum