Credit note workflow

A user can trigger the credit note operation for a freight bill detail charge in any of the following scenarios:

  • A carrier has included an expected charge for the freight bill detail.

  • The amount for a freight bill detail charge is more than the corresponding voucher charge amount.

A credit note can be created for a charge ID of a matched voucher if the amount for the freight bill detail charge is more than the voucher charge amount.

The following are the immediate outcomes for the charge ID when the user triggers the credit note operation:

  • A credit note is created as a positive voucher adjustment and is equal to the difference between the approved amount for the freight bill detail charge and the voucher charge amount.

  • The voucher charge amount is increased to match the freight bill detail charge amount.

When the freight bill associated with the freight bill detail is subsequently processed by the A/P Transaction Generation process, an additional voucher with the same reference number as that of the freight bill detail is created. The additional voucher has a credit note that offset the positive credit note of the original voucher. The additional voucher can be used to settle any additional freight bills that the carrier may later send for the same freight movement.

Example for the credit note workflow

Consider a voucher, VCHR-100, with the reference number as Load-XYZ. Let CHG1 and CHG2 be the charge IDs for VCHR-100. The freight bill detail associated with the voucher has a charge amount of 100 only for the CHG1 charge.

The following tables provide an overview of the voucher charges and freight bill detail confirm page after a freight bill detail has been created and matched to VCHR-100:

Voucher charges

Voucher number Reference number Charge ID Charge type Voucher charge amount Voucher status Voucher type
VCHR-100 Load-XYZ CHG1 Original 100 Accrual Pending Initial

Freight bill detail confirm page

Charge ID Net amount (Freight bill detail amount) Voucher amount Variance amount Variance % Freight bill detail status (Assumed) Is the creation of Credit Note allowed
CHG1 200 100 100 50 Matched Variance Yes
CHG2 150 NA 150 100 Unmatched Yes

Since the freight bill charge amount is more than the voucher charge amount for CHG1 and CHG2, the user can trigger the credit note operation for these charge IDs.

When the credit note operation is performed, the credit notes are created on the matched voucher as a positive amount for CHG1 and CHG2. The credit note is equal to the difference between the freight bill charge amount and the voucher charge amount of CHG1 and CHG2 respectively. The voucher charge amount for CHG1 and CHG2 is increased to match the corresponding freight bill charge amount.

The following tables provide an overview of the voucher charges and freight bill detail confirm page after the credit note are created:

Voucher charges

Voucher number Reference number Charge ID Charge type Voucher amount status Voucher type
VCHR-100 Load-XYZ CHG1 Original 100 Accrual Pending Initial

Freight bill detail confirm page

Charge ID Net amount (Freight bill detail amount) Voucher amount Variance amount Variance % Freight bill detail status (Assumed) Is the creation of Credit Note allowed
CHG1 200 100 100 50 Matched Variance Yes
CHG2 150 NA 150 100 Unmatched Yes

Since CHG2 does not have the corresponding freight bill detail charge, the status of CHG2 remains Unmatched though a credit note is created for CHG2.

When the freight bill associated with the initial voucher VCHR-100 is processed by the A/P Transaction Generation process, the original and credit notes that are created for CHG1 and CHG2 are closed. A post charge voucher, VCHR-101, with the reference number as Load-XYZ is created. The post charge voucher has credit notes CHG1 and CHG2, which offset the positive credit note of the initial voucher VCHR-100. VCHR-101 can be used to settle any additional freight bills that the carrier may later send for the same load.

The following tables provide an overview of the status for the initial and post charge vouchers after the A/P Transaction Generation process is run:

Initial voucher status

Voucher number Reference number Charge ID Charge type Voucher amount Status Voucher type
VCHR-100 Load-XYZ CHG1 Original 200 Closed Initial
CHG2 Original 150 Closed
CHG1 Credit Note 100 Closed
CHG2 Credit Note 150 Closed

Post-charge voucher status

Voucher number Reference number Charge ID Charge type Voucher amount status Voucher type
VCHR-101 Load-XYZ CHG1 Credit Note 100 Accrual Pending Post Charge

See also

Balance due workflow