How to raise a credit note for freight or shipping
In order to create a credit note for freight (or shipping), a non-diminishing (or sundry) stock item is required.
If one does not exist, setup or create a non-diminishing shipping or freight item from the Products menu, for example:
The default sell price can be zero or can be the default shipping charge amount or in this case, to credit. It can be overridden on order entry.
After that, raise a new sales order as per normal:
- Enter the Shipping code
- Enter a negative quantity to indicate the order is a credit note
- Enter a price to credit if the price was not displayed
- Once ready, click "Ship out & invoice"
- Click "Commit credit" (blue button on the top left-hand side of the page)
Consideration for Xero accounts
By default, the credit note is allocating to the sales account; if you need the Shipping code to allocate to another GL account (e.g. Freight revenue), try the following:
- Enter the Xero GL mapping for the non-diminishing code by editing the product, then click on Edit GL (next to the non-diminishing toggle switch bottom right). In this case, after the shipping credit note is posted, it will code the credit to the shipping revenue account in Xero
- Or, set the shipping product code to a different product type for example: Shipping fees
- The Shipping fees product type can be mapped to different Xero GL accounts
To map the Xero accounts for product types:
- Go to Integrations, Xero then Settings (on the left)
- Scroll to the Accounts mapping section
- Click "Set account mappings for individual product types"
