Overview

Past Credit Notes in N3 AI Accounting are used to record reductions to Accounts Receivable for returns, discounts, or other adjustments prior to the cut-off date. When the Document Date is before the cut-off, the system classifies the transaction as a Past Credit Note, helping ensure AR balances in the customer ledger and GL Opening Balance reflect the intended accounting period.

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. By entering each credit note with a Document Date before the cut-off, the system automatically classifies it as a Past Credit Note, supporting accurate AR balances and correct GL opening balances.

Prerequisites

• Customer master data must exist.

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

Procedure

1. Navigate to Account Receivable > Credit Note, then click Add.

2. Enter the Document Date first.

3. Complete the remaining fields in order: Credit Note No., Customer details, Description, Reason of Adjustment, Amount Balance, Tax Code.

4. Go to the Knock Tab and select the invoices or debit notes that this credit note applies to.

• This will update the AR balance, either closing the matched documents’ balance or reducing their current balance.

5. Click Save to record the transaction.

6. Verify the credit note and updated AR balances appear in the AR ledger or relevant transaction report.

Note: Lumpsum credit per customer can be recorded, but entering per credit note and matching in the Knock Tab is recommended for accurate reporting, tracking, and reconciliation.

Application (Use Cases)

Past Credit Notes are used to:

• Reduce AR balances as of the cut-off date.

• Maintain accurate customer ledger and GL Opening Balance.

• Ensure AR balance reflects matched invoices or debit notes.

• Support detailed reporting and reconciliation at the transaction level.

• Facilitate audit trails by maintaining per-transaction entries.

System Scope: QNE AI Cloud Accounting / N3 AI Accounting