How to Create Past Supplier Credit Notes

Recording past supplier credit notes allows businesses to establish historical Accounts Payable (AP) adjustments that existed before the accounting start date. This process is commonly performed during system migration, opening balance setup, or when transferring records from a legacy accounting system.

Past supplier credit notes are recorded to reflect unapplied supplier credit balances that reduce Accounts Payable balances in the new system. These transactions help maintain accurate supplier balances, aging reports, and payment reconciliation records after migration.

Depending on business requirements, past transactions may be recorded either as:

• Consolidated balances per supplier, or

• Itemized historical credit note records based on original references

When recording historical transactions, verify that:

• Outstanding balances are verified against prior accounting records

• Related historical bills, payments, or debit notes are also considered to maintain accurate supplier balances

The Accounts Payable opening balance is derived from the net effect of:

• Past Supplier Bills

• Past Supplier Debit Notes

• Past Pay Bills

• Past Supplier Credit Notes

Only unapplied supplier credit note balances before the accounting start date should be recorded.

Scenario:

Your company is migrating from a legacy accounting system to QNE Optimum for the January to December 2015 financial year. As part of the migration, the company needs to record all unapplied supplier credit notes dated before January 1, 2015, so that supplier balances and Accounts Payable reports remain accurate in the new system.

Some suppliers have a single outstanding balance, while others require individual historical credit notes to be recorded for tracking and reconciliation purposes.

Prerequisites:

• Supplier master records must already exist in the system.

• The financial year and opening balance period must already be configured.

• Unapplied supplier credit note balances must be verified against the previous accounting records before migration.

Procedure:

1. Prepare the list of unapplied supplier credit notes from the legacy records or prior accounting system.

2. Verify that the credit note balances represent unapplied amounts as of the accounting start date.

3. Review whether the credit notes will be recorded as:

• Consolidated balances per supplier, or

• Individual historical credit note transactions

4. In the navigation pane, go to Supplier > Past Supplier Credit Notes.

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

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

5. Select the Supplier and enter the historical supplier credit note details, such as:

• CN #

• Reference No

• Description

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

• Purchaser (Employee or purchaser responsible for the procurement transaction. Used for tracking and reporting purposes.)

• Amount

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

Note: 

• Past Pay Bills and Past Supplier Credit Notes can be matched against supplier documents through Supplier Knock-Off, where applicable. 

7. Repeat the process for all remaining outstanding credit notes. 

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

9. Verify the recorded balances match the historical records.

Application (General Use Cases):

Past Supplier Credit Notes are used to

• Establish opening Accounts Payable adjustments during system migration

• Transfer unapplied supplier credit balances from a legacy accounting system

• Maintain supplier aging continuity after go-live

• Support historical balance reconciliation

• Help maintain continuity and accuracy of Accounts Payable reporting

• Retain reference to historical supplier credit note records for audit and tracking purposes
  
  System Scope: QNE Optimum