Supplier credit notes
MobileMechanicGuy
Member Posts: 5
So as a mechanic I buy parts from suppliers that don’t always get used (maybe a last minute cancellation or wrong part for the vehicle), I then return these parts and get given a credit note (and a refund) how do I input that credit so the original doesn’t count towards my expenses? Thanks
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Hey there @MobileMechanicGuy
If you're receiving a refund, you'll want to take that green transaction and mark it as a refund for an income account or for an invoice. I might however be a bit unclear on the
part. Do you receive credit notes on your purchases that you send back, or refunds? Is the money returned to your account or is it just credit for future purchases?
You may benefit from the prepayments part of this article!
https://support.waveapps.com/hc/en-us/articles/208622916-How-to-handle-invoice-deposits-or-pre-payments
Sorry I may have been unclear. Most of my products are on an account that I clear after 30 days so at the point of receiving a credit it’s a credit for the invoice.
Generally the invoice I receive the credit for has already been input though so need to be able to put the credit note into the system ( as a minus amount) so the invoice amount is removed from my expenses.
There are some occasions when I will have paid for an item that has a credit and physical money will change hands do I then have to use a different method like above?
(Both ways in question are for when I purchase parts or materials for the business)
Appreciate the response, thanks.
Hey @MobileMechanicGuy . You can add a negative item to any of your Bills (assuming that this is how you're keeping track of these expenses) add name it a credit. It will reduce the total amount of the Bill.
The customer hasn’t paid for it so does not exist on any bill.
When I purchase a product from my supplier I take a picture of the invoice from them with the wave receipts app, it then gets logged as a business expense (parts and materials). From time to time parts go back which I receive a credit invoice from the supplier. I need to add this credit to my accounts to show the original expense doesn’t count towards my tax return.
The logical thing for me to do would be to use the receipt app and log the credit but it won’t let me enter a negative amount
@MobileMechanicGuy Thanks for explaining your workflow. The receipt tracking feature in Wave was created to track expenses specifically. While you do receive a receipt for a refund, the best way to track this would be to use the transaction and categorize it as a refund for an expense, and it will then ensure that the balance of the transactions in the expense category removes the refunded amount.
In terms of a credit note, this feature doesn't exist within Wave through the invoicing feature in Wave. There is an ongoing discussion happening and I would recommend taking a look in that discussion for the alternatives for how you can track it. There are a couple of options, so I would recommend taking a look and letting us know if you have further questions
https://community.waveapps.com/discussion/comment/25739#Comment_25739
So instead of putting an expense invoice under the category like parts and materials there is a specific one that says refund?
Hey @MobileMechanicGuy! What @JordanD is referring to is the option to categorize the refund transaction as 'Refund for Expense' from the Transactions page. It looks like this:
After you click 'Refund for Expense' you can choose the specific expense account to categorize the refund to!
@MobileMechanicGuy In your Transactions page (Accounting > Transactions), you'll want to add the income transaction for the credit. From here, click into the income transaction, and categorize it as Refund for Expense. You'll then want to select the expense account it correlates to in Wave, thus reducing the amount of that expense account in the amount of the credit.