Supplier Credit Notes

I have searched the forums and found various puzzling and complex ways to try and deal with the simple issue of receiving a supplier credit note and allocating to the suppliers account - not necessarily against a specific invoice, but against the outstanding account balance in general.

The knowledge base article states that the method shown for credit notes can be used for suppliers as well as clients, yet the available option “buttons” differ dramatically and simply does not work the same for suppliers!

I have spent hours and hours now, having thought quick file would work for us, setting up balances etc and importing data, and now I come to my first credit note, and when I enter it, it automatically wants to be paid immediately, and so messes up both supplier and bank accounts. This is wrong!

As asked by others, why can’t a credit note simply be added to the supplier account, awaiting settlement at a later date. That is what I need to do - how can I do that without going around the sun to met the moon! Seems to me this is basic business accounting practice.

Frustrated (to put it mildly)

Oh-oh! now found another related problem! When issuing a credit note, the system seems to jump forward 1 in the invoice ref. field! Similarly annoying is when you delete an invoice - or credit note - the next purchase invoice reference number still increments by 1. Thus their are numbering gaps appearing, which is confusing and which I would have thought Messrs. HMRC would frown on!

Never experienced this in other accounting packages I have used over many years, is it a bug? (Surprised that no-one else seems to have brought this up in my forum searches?)


The deleted items are never actually deleted but rather just marked as deleted so they can be viewed and restored at a later date if required.

This is how I believe HMRC would rather you did it actually, you shouldn’t delete or permanently remove any accounting documents whether they are issued or not. Most people operate contrary to this but I think Quickfile is correct in the way it does it. Obviously it looks wrong when you are issuing documents etc… for testing purposes but then I wouldn’t recommend practicing procedures on a live account.

Lurch, fair enough re deleting invoices, but errors do occur when invoices are mistakenly entered, it is the gaps in document numbering that bothers me. But the way invoice numbers jump ahead by 1 , when credit notes are issued is a bigger problem in the document trail surely?

Do you have any comment on the proper application of credit notes to supplier balances, (without a bank receipt being automatically created) in my first question? This is a real issue I think, and must affect a lot of people?

Credit notes in QuickFile must always be attached to a previously issued invoice, that’s due to the way many of the reporting systems work and is very much baked into the code, i.e. something that is not trivial to change.

I’m curious to know why attaching a credit note to a previous invoice is presenting such a problem? Since a few weeks back you can even do this directly from the Receipt Hub. I acknowledge that some businesses have relationships with suppliers that issue high volumes of credit notes but most businesses only need to use credit notes on an occasional basis.

Do you have many suppliers who frequently issue credit notes or just 1 or 2? I’m not digging in here I’m just trying to get a handle on the problem and potential ways we can solve it.

Regarding the invoice numbering, as @Lurch mentioned this is by design not a bug. It wouldn’t present any problems with HMRC as those invoices are not physically deleted and there are no gaps in the invoice numbering sequence. We may revisit this in future and prefix those deleted invoices so an unbroken sequence is maintained for active invoices, it’s probably best discussed on a separate thread.

Hi Glen, thanks for your input. OK,

  1. in this instance I am just setting things up and entering purchases since our new year a few weeks ago. So at the moment the invoice that the credit note relates to does not exist on the system - it was in the previous year, and I have only added the total trade creditors balance as part of the trial balance import.

  2. I haven’t yet looked at the receipt hub - but does that simplify matters re enetering a credit without an automatic bank payment occurring?

  3. Re. numbering, I accept your logic re deleted invoices but it seems to me to run counter to that when creating a credit note, which is automatically numbered CN0001, OK so far, but then the next invoice I want to enter automatically numbers it self + 2 from the last invoice: ie QF0025 entered - then CN0001 - then new invoice entered = QF0027 !! So I have a gap in my invoice numbering - you see my problem?

As we have a lot of invoices to enter - hardcopies already numbered from 0001 onwards - it is making things a muddle!


It can require a bit of work when setting things up as you always need something to anchor your initial credit notes to. Once you’ve done this you can have credit notes that just float on the account, without touching the bank.

You would first locate the original purchase to credit note and then select the credit note option in the “More Options” menu.

This will bring up a screen similar to the standard purchase entry form with the values set to negative.

When you save you can then opt to “Hold funds on supplier account”.

Now when you view your supplier details page you will see the balance of credits held on account:

If you return to any future invoice and click to log a payment an option will be visible in the payment dialogue box to pay from credit.

If your sending your Credit Notes to the Receipt Hub you can do much the same from there too.

Regarding point 3 I’d need to have a look at that, I will reply on another thread to keep everything to one discussion per thread, it makes it easier for others to get to the information they need.

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