Delete a sales credit note

Summary

How to delete a sales credit note entered by mistake in Sage Accounting.

Description

This explains how to delete a sales credit note entered by mistake. How you delete the credit note depends on whether it's been allocated (paid) or included in a VAT return.

How this works

You can only delete credit notes when they have not been used to pay an invoice and have not been included on a VAT return.

If the credit note has been:

Used to pay an invoice, then unallocate the credit note first to remove the link to the invoice
Included on a VAT return, you cannot delete the credit note. Reverse the credit note with an invoice instead

Draft VAT returns
If you've only created the VAT return and not yet submitted to HMRC, then all you need to do is delete the draft VAT return first.

From Reports, choose VAT Returns.

Select the Delete icon next to the draft VAT return.
Standard or flat rate VAT scheme

Once the credit note has been included on a VAT return and submitted to HMRC, it cannot be deleted. If you've made a mistake, you'll need to reverse the credit note with an invoice to cancel out the value. The new invoice is included on your next VAT return.

Cash accounting VAT scheme

On the cash accounting scheme, it is the payment and not the invoice that is included on the VAT return.

Simply remove the credit note from the invoice and delete as necessary.

Resolution

Delete a credit note

From Sales, choose Sales credit notes.
Select the check box next to the relevant credit note.
Select Delete from the toolbar.
Enter the reason for deleting the credit note.
Click Yes.

The credit note status now shows as Void.

Unallocate a credit note

When you create a credit note and allocate it to an invoice, we create an allocation transaction. This transaction holds the details of linked credit notes and invoices.

Before you can delete an invoice that’s been paid using a credit note, you must edit the allocation transaction.

From Contacts, select the required customer.
From the Activity tab, open the relevant customer allocation transaction.

The allocation transaction date is the date you allocated the invoice and credit note.

If the credit note is allocated to a single invoice, clear the check boxes for both the invoice and the credit note.

If the credit is allocated to more than one invoice,
- Clear the check box for the invoice being unallocated.
- Amend the amount outstanding on the credit note. Select and adjust the Amount to Pay to match the total of the remaining allocated invoices. For example, a credit note with a total value of 180 is allocated to 2 invoices, one for 60 and one for 120. The £60 invoice has been unallocated, so adjust the Amount to Pay to -120.00
If you allocated multiple transactions at the same time, and you only want to unallocate one invoice and credit note, the remaining transactions are unaffected.
Select Save.

The credit note status now shows as Unpaid. You can now delete the credit note.

Reverse a credit note included on a VAT return

Once a credit note has been included on a VAT return you cannot delete it. You'll need to reverse the credit note by creating a credit note.

Create an invoice with the same details as the credit note.
Allocate the invoice to the credit note you want to delete.
Create a new credit note with the correct details if required.

Create an invoice

From Sales, select Sales invoice.
Create an invoice with the exact details as the original credit note
If required, enter a reference. For example, Credit Note reversal.
Enter any notes, and Save.

Allocate the invoice and credit note

From Contacts, select Customers.
Open the relevant customer.
From the Manage drop-down, select Account Allocations.
Select the check boxes next to the credit note and the new invoice, and Save.

The invoice is included on your next VAT return and your VAT liability is adjusted accordingly.

Delete a sales credit note

Summary

Description

How this works

Draft VAT returns

Standard or flat rate VAT scheme

Cash accounting VAT scheme

Resolution

Delete a credit note

Unallocate a credit note

Reverse a credit note included on a VAT return

Create an invoice

Allocate the invoice and credit note

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