How to enter a supplier credit note in MYOB

Have the supplier's credit note to hand. MYOB calls it a purchase return in a browser and a supplier debit on the desktop, and it's also known as a debit note, supplier credit or adjustment note. Whatever the name, it's money the supplier owes you, for goods you sent back, services you didn't use or receive, or a bill you overpaid.

Use the same line details as the bill the credit relates to. Then decide how the supplier is settling it. If you have an unpaid bill from them, the return can be applied to it. If you don't, or they're paying you back, record it as a refund. If neither suits yet, save the return and apply it to their next bill.

1. Go to the Create menu and click Bill. MYOB fills in the next bill number. You can change it, but later numbers then follow on from the one you type.
2. Choose the Supplier the credit is from and check the Issue date.
3. Click Field layout and pick the option that matches what's being credited.
4. For items, enter the No of units as a negative number and the Unit price as a positive one. For services, enter a Description and the Amount as a negative number. Add a line for each item or service on the credit note.
5. Check the return over, then click Save. With several returns to enter, use Save and create new instead.
6. To use the return against a bill, go to the Purchases menu and choose Purchase returns and debits.
7. Select the return and click Apply. The Apply supplier debit to purchase page shows the return's value in the Debit field and lists the supplier's open bills.
8. Enter an Amount applied against one or more of those bills, then click Record.

Until it's used, the return sits on the Purchase returns and debits page with the other returns that can be refunded or applied. Applying it reduces what you owe on each bill you chose, by the amount you entered there. Recording a refund credits the amount to the bank account you selected.

Apply more returns, or refund them, by repeating the last steps for each one. MYOB's help also covers viewing, editing, deleting and printing purchase returns as separate tasks.

If you use AccountRight on the desktop, the credit is recorded as a supplier debit in one of two ways. Reverse Purchase, on the Edit menu of the open purchase, suits a bill you paid in full and want to cancel; it needs the security preference set so transactions must be reversed. For a credit on part of a purchase, click Enter Purchases in the Purchases command centre, choose Bill as the type and enter the amount or the returned quantity as a negative.

To settle it on the desktop, open the Purchases Register, click the Returns & Debits tab, select the debit and choose Apply to Purchase or Receive Refund. When applying, the amounts in the Applied column must add up to the Debit Amount, or a message stops you recording it. If a bill doesn't appear and you use categories, give the debit the same category as the bill.