Wednesday, 5 December 2012

Producing Credit Notes

A customer of mine who runs a high-street shop was recently subjected to a surprise 7 hour tax examination by HM Revenue &Customs.  During the audit HMRC stated that if you raise a credit note, you must record the customer’s name and address on the note.  This is presumably so HMRC can check with the customer that you did in fact refund money to them. 

Fortunately this customer had been doing everything right with regards to operating the stock system, maintaining records and raising credit notes etc., however I know some of you will not be aware of this requirement.

You can still sell an item to an unknown customer (i.e. you can still select ‘Counter Sales Customer’), but when refunding money you must create a customer record first (if it doesn’t already exist) and then select that record when raising the credit note.

Any questions please call…