The Credit Note Maintenance transaction allows you to create/modify a credit note and print a hard copy if required.

The customer list contains all active customers associated with the business.

You may enter a credit note number or you may leave the field empty. If the field is left blank the next credit note number is generated for you. Credit note numbers are generated using the same sequence as that used to generate invoice numbers.

The next number for the sequence can be modified from the Business Profile Maintenance screen via the Accounting Options tab.

In an Invoice to a customer the purchase order number (P/O number) is normally the customers reference number that you want to associate with a specific invoice/credit note. This allows the customer to easily cross-reference your invoice/credit note with their purchase order.

In a Bill from a supplier the purchase order number (P/O number) is normally the order reference number that you asked them to associate with a specific invoice/credit note.

You can specify the style that you would like for your printed credit note. This field defaults to the value selected for Default Document Style on the Business Profile screen but you can always override the default on the credit note if required.

You can enter up 200 characters of additional free format text for printing on the credit note. This text will appear in the area allocated towards the bottom left of the credit note.

The exchange rate required to convert from the reporting or base currency to the transaction currency.

e.g. For a UK Sterling business invoicing a customer in US Dollars at a time when the exchange rate is $1.98 to the £ you would enter 1.98

A list of sales items offered by your business.

You can enter up 500 characters of additional descriptive text for the item. This text will be printed on the invoice/credit note.

The rate for the selected sales item is the default unit amount set up when the the sales item was created. The default rate can be overriden if required.

See 'Setting up Sales Items' process for more information.

The net amount associated with the item.

When recording purchases, if you have a gross amount and want liberty to calculate the net amount and vat amount simply enter the gross amount in this field, select the appropriate VAT code, and type "g" in the VAT amount field.

The appropriate VAT rate for the account must be selected. Default VAT rates can be associated with an account via the Account Maintenance screen which is available from the chart of accounts view.

If the business is on the HMRC Flat Rate VAT Scheme, as defined on the VAT details tab of the Business Profile, the VAT rate will default to "Out of Scope" for all purchase transactions. This can be changed if necessary. Exceptions may apply for purchases of capital assets of significant value, please consult your professional advisor.

17.5%, 5% & Zero, used for normal UK VAT transactions.

Used when a transaction is an exempt supply; such as the purchase of insurance. See the VAT Guide (Notice 700) for more details or visit the Revenue and Customs site at www.hmrc.gov.uk

Used when you purchase goods from a VAT registered supplier in an EU member state. Make sure that the VAT code is set to EU Acquisition, and that the VAT amount shows the VAT which would have applied if the purchase had taken place in the UK. The correct country must be set on the supplier record to ensure correct reporting of the transaction.

Only used if you have you have incurred VAT in an EU member state, (i.e. local VAT). This CANNOT be recovered as input tax for UK VAT. You may make a claim for refund from the member state. A scheme exists to do this known as "Refunds of VAT in the European Community for EC and non-EC businesses" The details are in notice 723, refer to the Revenue and Customs site at www.hmrc.gov.uk Use of this VAT code is described more fully in the "VAT and Liberty Accounts" user guide.

Used when a transaction is not in the VAT system at all. For example payments into a money purchase pension scheme are out of scope because they are equivalent to savings. Recording a payment of VAT to HMRC is a common example where Out of Scope should be used, as are salary payments and repayments of director loans. Using this code will result in no VAT reporting impact.

This code is used where there is no VAT on a purchase transaction, typically from a supplier who is not vat registered. This is not the same as zero rated, exempt or out of scope. The impact is that the value of the purchase is included in box 7 of the VAT 100 return.

This code can be used where there the transaction is recording an aggregation of mixed VAT codes in a single entry with the VAT amount manually set as required.

Typically this is required for a purchase from a non-EU country where no VAT has been paid. It simply provides a means of accounting for the VAT that would have been paid if the good or service was purchased in the UK. Applying a reverse charge VAT process will have no impact on your VAT liability.

To use this feature simply set the VAT on the item(s) to the appropriate VAT rate(s) that would apply had the item been purchased in the UK and submit the transaction with the Reverse Charge VAT checkbox ticked (Located in the "Analysis" tab of the voucher in the top half of the screen).

If you subsequently view the item you will notice that the VAT rate has been set by the system to "Out of Scope". This is correct. If you need to make changes to the transaction you must reset the VAT codes to the appropriate code so that the Reverse Charge can be created again using the correct VAT amounts.

The amount of VAT charged on this item is automatically calculated based on the vat code selected but can be changed.

When recording purchases, if you have a gross amount and want liberty to calculate the net amount and vat amount simply enter the gross amount in the net amount field, select the appropriate VAT code, and type "g" in the VAT amount field.