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Version: Current

FAQ: How are supplier credits processed? Can they be matched to invoices?

Supplier Credit Notes (also known as Credit Memos or Adjustment Notes) represent a credit issued to your business by a supplier, reducing the amount you owe them. Zudello processes these similarly to invoices but treats the values as credits.

Processing Steps:

  1. Upload/Ingestion: Submit the Credit Note document to Zudello (usually via email or upload to Purchasing > Credits).
  2. Classification: Zudello identifies the document as a Credit type. If misclassified (e.g., as an Invoice), use the Convert action to correct the type.
  3. Extraction & Enrichment: Data like Supplier, Document Number, Date, Lines, and Totals are extracted. Enrichment links the Supplier and applies default coding.
    • Important: Zudello typically expects credit note values (totals, line amounts) to be entered as positive numbers. The system understands it's a credit based on the document type. Ensure data entry or extraction reflects this. See Credit Note Processing Incorrect.
  4. Coding & Review: Users review the extracted data and apply necessary coding (Account, Dimensions, Tax Rate).
  5. Approval (Optional): Credit notes may or may not require approval depending on your configured workflows (Sentences). Often, credits below a certain threshold or matching a specific reason might bypass approval.
  6. Integration: Once approved (or if approval is bypassed), the Credit Note is typically sent to your ERP system via integration to create the corresponding Credit Memo transaction, reducing the supplier's balance.

Matching Credits to Invoices:

  • Direct Matching: Zudello does not currently support directly allocating a Credit Note against a specific Invoice within Zudello's allocation features. The allocation system is primarily designed for matching Invoices to POs/Receipts.
  • ERP Handling: The application of the credit against specific outstanding invoices is typically handled within your ERP system according to its standard processes after the Credit Memo has been synced from Zudello.
  • Reference: It's good practice to use the reference field or notes field on the Credit Note in Zudello to indicate which original Invoice(s) the credit relates to, aiding reconciliation in the ERP.

In summary, process Credit Notes in Zudello similar to invoices (ensuring the correct 'Credit' type and positive values), and handle the application against specific invoices within your ERP.