Credit note on cash discount
This article provides information that will help legal entities in the Czech Republic create, post, and print credit notes for cash discounts that are given to customers.
Companies in the Czech Republic must issue credit notes for cash discounts that are given to customers. These credit notes must include the following information:
- Invoice number
- Value-added tax (VAT) base and amount from the original document
- Reason for a correction
Prerequisites
Set up number sequences
Create a continuous number sequence for a legal entity. For more information, see Number sequences overview On the Accounts receivable parameters page, select the number sequence that you created for Sales credit note. Additionally, set up a number sequencevfor Sales credit note voucher. You can use the same number sequence that you used for Sales credit note.
Set up sales tax codes
For more information, see Sales tax overview.
Set up report formats for documents
Go to Accounts receivable > Setup > Forms > Form setup.
On the General tab, under Set up options for customer forms, click Print management.
In the tree, expand Module - accounts receivable > Documents > Customer invoice. In the Report format field, enter or select a value.
In the tree, under the Customer invoice node, select Original. In the Report format field, enter or select a value.
In the tree, expand Module - accounts receivable > Documents > Free text invoice. In the Report format field, enter or select a value.
In the tree, under the Free text invoice node, select Original. In the Report format field, enter or select a value.
Set up customer reason codes.
On the Customer reason codes page (Accounts receivable > Setup > Customer reason codes), create or edit the reason codes that are used for tax corrective documents.
Set up Accounts receivable parameters
On the Accounts receivable parameters page (Accounts receivable > Setup > Accounts receivable parameters), on Settlement tab, on the Options FastTab, set up the following parameters:
Select the Require reason codes for credit notes check box.
Select the Post credit note for cash discount check box.
In the Reason code for cash discounts field, select a default reason code to use for tax corrective documents.
Credit notes for cash discounts
Credit notes for cash discounts are posted automatically when open customer transactions (customer invoice and customer payment) are settled. When credit notes for cash discounts are posted, they include the reason codes that you set up in Account receivable parameters, and a reference to the original invoice. Credit notes for cash discounts are numbered by using the number sequence that you set up for credit notes. The document printout is named Tax corrective document. It includes the original invoice number, the VAT base and amount, and the reason why a correction was printed.