Credit Note Rules
A credit note reverses all or part of an invoice that has already been signed. KRA checks every credit note against the original invoice and rejects any that breaks one of the rules below.
Rules
| Rule | What it means |
|---|---|
| The original invoice number must be valid | The invoice you credit has to exist already and have been processed, and its number has to appear on the credit note. |
| A partial credit note must not exceed the original invoice amount | Any credit note you issue after the first one still has to stay within the amount of the original invoice. |
| A full credit note must not exceed the original invoice amount | The amount on the credit note cannot be higher than the amount on the original invoice. |
| The original invoice must be less than 6 months old | You have 6 months from the date the original invoice was issued to raise a credit note against it. |
| Only one partial credit note per invoice | A trader gets one partial credit note per invoice. Any credit note after that has to be a full credit note. |
Types of credit notes
Full credit note
You issue a full credit note when the whole amount on the original invoice goes back to the buyer. For example:
- You sold services and products to a patient and the payer rejected the full claim.
- You sold products and the buyer returned all of them.
Partial credit note
A partial credit note credits back only part of the original invoice. Three situations call for one.
Quantity changes
The buyer returns some of the goods sold, say because they arrived damaged. The seller edits the quantity on the credit note, and the credited amount is the returned quantity multiplied by the unit price.
You sold a buyer 30 bottles at KSh 100 each, a total of KSh 3,000. The buyer later found 10 of them damaged and returned them. The credit note carries the 10 returned bottles, so the credited amount is 10 × KSh 100 = KSh 1,000, and that is what you return to the buyer.
Price changes
The buyer was overcharged for an item. The seller edits the unit price of that item on the credit note, and the credited amount is the quantity times the new unit price.
As a provider you invoiced a patient belonging to Jubilee a total of KSh 20,000, of which KSh 5,000 was copay that you did not collect. The payer paid the claim minus the copay, sending only KSh 15,000. You send a credit note of KSh 5,000 to eTIMS to show that part of the cost was not paid.
Removed items
A buyer who bought several items wants to return one of them in full, perhaps because they no longer want it. That whole item is credited.
You sold a buyer 30 bottles, 20 boxes, and 15 laptops at KSh 20,000 each. The buyer wants to return the laptops because they no longer have the money. The credit note carries the laptop quantity times its unit price, so the credited amount is 15 × KSh 20,000 = KSh 300,000, and that is what you return to the buyer.
See also
- Credit Note Reasons for the
rfdRsnCdcodes you set on a credit note. - Transaction Progress,
since an invoice moves to
05(Credit Note Generated) once a credit note is raised against it.