Financial Services

Issuing a Credit Note Policy

All official University credit notes must be raised by Financial Services (Revenue) or Business Units that have online access to the Accounts Receivable (AR) system.

This is not only to ensure they are recorded in the books of account for audit and control purposes but to ensure prompt recovery of any associated GST.

Policy statement

A credit note may be raised by the officer who originally authorised the related invoice but it requires independent hierarchical approval.

Typically a credit note will be raised to:

  • record the return of goods or cancellation of a course
  • record a reduction/adjustment in the value to an invoice raised
  • record foreign currency conversion differences.

A valid University credit note shows:

  • credit note number
  • the date
  • debtor number
  • full name and address of the debtor
  • debtor's ABN
  • particulars of the goods or services supplied requiring adjustment and invoice number
  • amount of adjustment in Australian dollars
  • other necessary references, such as a student number.

When requesting a credit note to be raised, adherence to the following will result in the timely dispatch and allocation of your request:

  • The credit note request has been reviewed and properly authorised.
  • Customer account details are included on the along with invoices to be adjusted.
  • GST has been correctly recorded. GST should equal 1/11th of the gross amount of the adjustment in all cases. Exempt components should be shown as separate lines with the appropriate account code.
  • Proper explanation as to why the credit is required. "Cancel invoice nnnnn" is not anexplanation.
  • Working papers detailing the basis of any credit calculations, the source of supporting data and the name of the preparer of the calculations to assist us in follow-up.
  • Forward requests to Revenue Section, Financial Services (M449).

A copy of the credit note request should be kept on file with reference to the credit number issued or a reprint copy of the credit note.

Key controls

  • Segregation of duties: responsibilities for billing (raising invoice) adequately segregated from those for collection, deposit of funds and credit issuance.
  • Reviewing and approving of credit notes as per University Financial Delegation.
  • Prompt investigation of credit issuance and disputes with billing amount.
  • Establishment of a documented Revenues and Receivables procedures and controls to ensure all staff know the processes they are expected to follow.
  • Periodic review and approval by legislative bodies of rate of taxes, fines, fees, programs of tax exemption, rate schedules and the like.
  • Regular review on delinquent accounts and take prompt action to collect or consider them for write-off on a timely basis.
  • Retention of records for audit purposes.