Apply Credit Notes to Approved Invoices for EPD
To account for an Early Payment Discount (EPD) on an approved invoice, many countries require you as a supplier to issue a credit note to to the buyer.
Coupa makes the process easier by creating a draft credit note for you when your Coupa buyer makes an early payment. The credit note is helpful for both you and your buyer to balance out your invoiced and paid amounts.
The creation of credit notes to handle discounts primarily applies to customers in the EMEA (Europe, the Middle East, and Africa) region, due to legal compliance regulations where the discount amount directly impacts how much tax is due.
This may apply to Early Payment Discount programs your customer activates for After Invoice Approval. For more information, see Use Early Payment Discounts: After Invoice Approval.
Apply Auto-created Draft Credit Note From a Discounted Invoice
When a customer makes the discounted payment to you, the system will create a draft version of a credit note for the discount amount.
- From the Invoices table on the CSP, search for the draft Credit Note using the View filter.
- Select the Edit icon
to open the invoice.
- If necessary, you can update these values:
- Credit Note #
- Credit Note Date
-
Submit the credit note to your customer to apply the discount.
For the draft Credit Note, the Original Invoice #, Original Invoice Date, and Amount fields are pre-populated and can’t be edited.
Auto Submit Credit Notes for Discounted Invoices
When you participate in Early Payment Discount programs that offer After Invoice Approval discounts, your Coupa buyers can request the auto submission of credit notes on discounted invoices.
After a buyer activates the credit note request, the next time you open an early payment request you see a required checkbox with the text below for the Terms of Use:
By checking this box, you authorize Coupa to automatically create and release on your behalf, this and all future early payment discount (EPD) credit notes to this and all other customers that offer an early payment program of which your business is a participant.
You must select this checkbox once in order to submit any early payment requests for After Invoice Approval discount programs.
Once you accept these terms of use, the system will automatically generate and submit a credit note for every new discounted invoice at the time an early payment is made to you.
The credit note submitted to your customer will have a reference number that is a combination of EPD- and the invoice number.