Delete a purchase credit note

Summary

How to delete a purchase credit note in Sage Accounting, depending if it's paid or included in a VAT return.

Resolution

How this works

You can't delete credit notes if you paid an invoice with them, or included them 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 can't delete the credit note. Reverse the credit note with an invoice instead

Draft VAT returns
You may have created the VAT return but haven't yet submitted it to HMRC. All you need to do is delete the draft VAT return first
1. From Reports, choose VAT Returns.
2. Select the Delete icon next to the draft VAT return.
Standard VAT scheme

Once included on a VAT return and submitted to Revenue, you can't delete the credit note. If you made a mistake, you'll need to reverse the credit note with an invoice to cancel out the value. The new invoice is on your next VAT return.

Cash VAT scheme

On the cash scheme, it's the payment and not the invoice that's included in the VAT return.

Remove the credit note from the invoice and delete it as necessary.

Delete a purchase credit note

Delete an unallocated credit. This has a status of Unpaid.

From Purchases, select Purchase Credit Notes.
Select the check box next to the relevant credit note.
Choose Delete from the toolbar.

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 you paid using a credit note, you must edit the allocation transaction.

From Contacts, select the required supplier.
From the Activity tab, open the relevant allocation transaction. The allocation transaction date is the date you allocated the invoice and credit note.
If 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 relevant invoice
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, you allocated a credit note with a total value of €180 to two invoices, one for €60 and one for €120. The €60 invoice is unallocated, so adjust the Amount to Pay to -€120.00

If you allocated many transactions at the same time, you can unallocate one invoice and credit note. This doesn't affect he remaining transactions

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 on a VAT return you can't delete it. You'll need to reverse the credit note by creating an invoice.

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 Purchases, select Purchase 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 Suppliers.
Open the relevant supplier.
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 on your next VAT return. Your VAT liability adjusts accordingly.

Delete a purchase credit note

Summary

Resolution

How this works

Draft VAT returns

Standard VAT scheme

Cash VAT scheme

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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