This topic describes the specific functionality available for this tab in case the Enable Items of Work Type in Sales Documents option is selected on the Administration > Settings > Sales form and the Enable the Phased Revenue Recognition functionality option is selected on the Administration > Settings > General Settings form.

If only the Enable Items of Work Type in Sales Documents option is selected on the Administration > Settings > Sales form, you can include items of Work type in the list of items for correction.

If  also the Phased Revenue Recognition functionality is used in your system and the Use Phased Revenue Recognition option is selected on the Additional Information tab (as well as in the customer contract), you can correct the amounts of works and the related costs recognized along with works in the earlier invoice.

On the Inventory tab, you can list Work-type items which amounts require correction and their costs.

The "Credit Note (create)" form. The Inventory tab

The Inventory tab includes the following two panes:

• Inventory: With a list of items of Work and Service types that were sold to the customer and which amounts require correction.
• Work Costs: With a list of Work-in-Progress costs that were recognized in Invoice and which amounts may require correction.

The Inventory pane

If the credit note is generated based on Invoice, this tab is automatically populated - remove the lines that don't need correction and leave the lines with items for which correction is needed and edit the details.

If you need to manually add an item, click the Add button on the tab toolbar. If you need to manually add multiple items, click the Pick button and select the items. 

The Characteristic column is available if the Enable Item Characteristics option is selected on the Administration > Settings > Purchasing and Warehouses form. In this column, you can specify additional properties (such as size, color, and so forth) of each item if the Use Characteristics option is selected for the item in its master record (see Items).

The Batch column is available, if the Enable Batches option is selected on the Administration > Settings > Purchasing and Warehouses form. In this column, you can specify the batch (lot) number for the items for which the Use Batches option is selected. Generally, you must specify batch numbers for items with expiration dates, items used in consignment or stocked in contract warehouses. To learn more about the item settings, see Settings: Purchasing and Warehouses.

The Serial Numbers column is available if the Use Serial Numbers option is selected on the Administration > Settings > Purchasing and Warehouses form. For each serialized item (for which the Use Serial Numbers check box is selected on the Items form), click in the column to open the Serial numbers dialog box. In this dialog box, you must enter the serial numbers according to quantity of the returned item.

In the Quantity column, you can specify the item quantity in the UOM specified in the corresponding column.

The Discount,% and Discount (or Discount Price) columns are available if the Enable discounts and markups in sales documents option is selected on the Administration > Settings > Sales form. Use these columns to specify the discount that was used for the inventory or service items in the basis (original) document.

The Auto-Discount % and Auto-Discount columns appear if the Enable Automatic Discounts and Markups option is selected on the Administration > Settings > Sales form. Use these columns to specify the auto-discounts that were applied to the returned items in the basis document.

In the GL Accounts column, you can view the default accounts to be updated by this transaction. If needed, you can replace them with other accounts.

The values in the Amount column are automatically calculated for each item according to the specified price, quantity, and discount.

If the VAT Applied option is selected for this credit note on the Main tab, the VAT, % and VAT Amount columns are available. The VAT amount is calculated in the currency of the document according to the amount and VAT-related settings (which are specified on the Main tab) as follows:

• If the Prices Include VAT option is selected: The VAT amount is extracted from the item amount (Amount), that is:  VAT_Amount = Amount*VAT_Rate/(100+VAT_Rate).

• If the Prices do not Include VAT option is selected: The VAT amount is calculated based on the item amount, that is: VAT_Amount = Amount*VAT_Rate/100.

The Total amount is automatically calculated according to the VAT-related settings as follows:

• If the Prices Include VAT option is selected: Total = Amount.
• If the Prices Do Not Include VAT option is selected: Total = Amount + VAT_Amount.

The value in the Contract Assets Quantity column shows the quantity of the item that was recognized in the related Phased Revenue Recognition documents.

The value in the Contract Assets Amount column shows the amount of the item that was recognized in the related Phased Revenue Recognition documents.

The Total Cost column shows the amount of related costs.

The Cost Object column shows the cost object to which the Work item is related.

The Income Item column shows the income item to which the revenue associated with Work item is related.

The Expense Item column shows the expense item to which the expenses associated with Work item are recorded.

The Business Activity column shows the business activity to which the Work item is related.

The Specification column shows the specification used to manufacture the Work item.

The Project Task column shows the task of the project related to the Work item.

In the GL Accounts column, you can view the default accounts to be updated by this transaction. If needed, you can replace them with other accounts.

When done with replacing GL accounts, click OK to save the changes and close the dialog box.

The Transaction Content column provides the default description for the journal entries generated for the transaction. If needed, you can edit it.

Use the Comment column to provide any relevant comments.

The Inventory tab toolbar buttons

Use the Up and Down ( ) buttons to rearrange the items in the list.

The Work Costs pane

The Work Costs pane shows the costs associated with the selected Work item or all Work items in the upper pane. If you need to view only the costs for the Work item selected in the Inventory table, click the Show Work Costs for the Selected Row option at the bottom of the form. To view the costs for all Work items, make sure the check box for this option is cleared.

The Document column shows the document which is the base for the cost.

The Department column shows the department related to the cost.

The Expense Item column shows the expense item to which the cost was recorded.

The Cost Object column shows the cost object for the cost incurred.

The Cost Element column shows the object to which the cost is related, such as a particular employee for labor costs, inventory item for material costs, or a fixed asset if you use special equipment or vehicles for the work.

The Characteristic column indicates the characteristic of the Cost Element if characteristics are used for this item.

The Batch column indicates the batch if batches are used for the Cost Element.

The Quantity column shows the quantity of the Cost Element.

The Unit Cost column shows the cost per UOM of the item.

The Amount (Accounting Curr.) column shows the cost calculated in the accounting currency for the specified quantity of the Cost Element.

The Amount (Curr.) column shows the cost amount calculated in the currency of the document.

In the GL Accounts column, you can view the default Work in Progress GL account to be updated by this transaction.

The GL Accounts dialog box

By default, in the Transaction Content column, a description that is used for journal entries appears.

The Work Costs pane toolbar buttons

Use the Up and Down ( ) buttons to rearrange the items in the list.