Supplier credit note for damaged goods
Finance verifies warehouse-reported damage on the GRN, raises a credit note request against the supplier invoice with photos, reviews and approves it, sends it to the supplier (immediately if a photo deadline applies), holds invoice payment until the credit note is applied, then releases the hold and closes out refused claims.
Raising, approval, return, sending and hold release are now covered across two people, but approval thresholds, non-Al Noor suppliers' deadlines and partial credit handling are still not observed.
The procedure, step by step
25 stepsEach step was observed in real work. Open a source to see the exact moment in the recording.
- 1
Open the warehouse damage/breakage report email in the inbox and note the supplier, PO and damaged items.
In mail.oasishome.ae
Where this came from - 2
Open the GRN attachment to check the damage was noted at delivery.
In mail.oasishome.ae
Where this came from - 3
Open the purchase order in Finance, go to the Receipts tab and open the GRN to confirm the items are flagged damaged and note the delivery time.
In finance.oasishome.ae
Where this came from - 4
If the supplier has a photo deadline (e.g. Al Noor Ceramics, 48 hours), calculate the deadline from the GRN delivery time and write it on the case.
In finance.oasishome.ae
Where this came from - 5
Open the supplier invoice linked to the PO.
In finance.oasishome.ae
Where this came from - 6
Click Raise credit note request on the invoice.
In finance.oasishome.ae
Where this came from - 7
Select the supplier and the reason 'Damaged on delivery', then enter quantity and credit amount.
In finance.oasishome.ae
Where this came from - 8
Record the supplier's photo deadline (48h after delivery for Al Noor Ceramics) on the credit note.
In finance.oasishome.ae
Where this came from - 9
Attach photos of every damaged piece, plus a photo of the unopened pallet showing the delivery label.
In finance.oasishome.ae
Where this came from - 10
Enter the warehouse reference (GRN number).
In finance.oasishome.ae
Where this came from - 11
Select the approver and submit the credit note for approval.
In finance.oasishome.ae
Where this came from - 12
Email the supplier a credit note request with the photos, pallet label and GRN attached; if a supplier photo deadline is running, send it the same day with an urgent subject line without waiting for approval, within the deadline.
In mail.oasishome.ae
Where this came from - 13
Place a payment hold on the supplier invoice with the reason 'Awaiting credit note' (referencing the credit note) and confirm the hold.
In finance.oasishome.ae
Where this came from - 14
Approver: open the Credit notes pending approval list in Finance, open the credit note and review its details.
In finance.oasishome.ae
Where this came from - 15
Open the Attachments tab and check the photo metadata to see how long after delivery the photos were taken.
In finance.oasishome.ae
Where this came from - 16
Open the linked GRN / purchase order and check the Receipts tab for the delivery time and damage flags; check the attachments for the GRN damage note.
In finance.oasishome.ae
Where this came from - 17
If the GRN has no damage note, add a comment and click Return for information so Customer Ops can ask the warehouse to annotate the GRN.
In finance.oasishome.ae
Where this came from - 18
If conditions are met, enter an approval comment noting the supplier condition is met (photos and pallet label within 48h) and click Approve.
In finance.oasishome.ae
Where this came from - 19
Click Send to supplier once the credit note is approved.
In finance.oasishome.ae
Where this came from - 20
If a supplier refuses a claim, mark the related credit note as Rejected by supplier with the reason.
In finance.oasishome.ae
Where this came from - 21
When the credit note arrives, open the Invoices on hold list and open the invoice held for the credit note.
In finance.oasishome.ae
Where this came from - 22
- 23
Click Release payment hold and confirm the release (also done when a claim is closed or rejected).
In finance.oasishome.ae
Where this came from - 24
Email the supplier that the credit note has been applied and the payment released for the invoice balance, and send the email.
In mail.oasishome.ae
Where this came from - 25
Update the warehouse briefing document with the supplier's photo requirement and save.
In oasishome.sharepoint.com
Where this came from
Exceptions — the knowledge nobody wrote down
5 exceptionsThe cases where someone left the usual path, and explained why. These are the risks if the person who knows them is away.
- When
- The supplier is Al Noor Ceramics
- Then
- Photos must reach them within 48 hours of delivery or they refuse the whole claim; compute the deadline from the GRN time and record it on the case and credit note, since the warehouse doesn't know this.
Where this came from- When
- The supplier has a photo deadline running
- Then
- Email the supplier the same day, without waiting for credit note approval, because the clock is theirs.
Where this came from- When
- A supplier claim involves Al Noor's 48-hour rule
- Then
- Only Priya or Sara should handle it, since someone unaware of the rule would cause the money to be lost.
Where this came from- When
- Al Noor Ceramics receives photos later than 48 hours after delivery
- Then
- The claim is refused; mark the credit note Rejected by supplier citing the 48h window.
Where this came from- When
- The warehouse reports Al Noor Ceramics damage
- Then
- Warehouse must promptly send photos of every damaged piece plus the pallet label to Customer Ops; document this in the warehouse briefing.
Where this came from
Decision rules
13 rulesHow the person decides, in their own words.
- When
- Damage is being claimed from a supplier
- Then
- Check the GRN first, because damage has to be noted on the GRN at delivery.
Where this came from- When
- Raising a credit note for a supplier
- Then
- Raise it against the supplier invoice, not the PO.
Where this came from- When
- Raising a damaged-goods credit note
- Then
- Always attach photos, even if the supplier doesn't ask, to avoid audit flags.
Where this came from- When
- Preparing the photo evidence
- Then
- Include a photo of every piece plus one of the unopened pallet with the delivery label visible.
Where this came from- When
- Photos are sent to the supplier
- Then
- Make sure the delivery label is clearly visible, otherwise the supplier sends them back and time is lost.
Where this came from- When
- A credit note is to be sent to the supplier
- Then
- Only Finance or Sara submits and sends it because it affects the supplier balance; Customer Ops only raises the issue.
Where this came from- When
- The credit note has been submitted
- Then
- The approver (Priya Nair) approves it in the system.
Where this came from- When
- A credit note has been requested from the supplier
- Then
- Place a hold on the invoice payment until the credit note comes back.
Where this came from- When
- A supplier claim is closed or rejected and the invoice is on payment hold
- Then
- Release the payment hold on the invoice.
Where this came from- When
- A supplier claim has a photo deadline running
- Then
- Email the supplier with photos attached right after submitting the credit note for approval.
Where this came from- When
- Photos and the pallet label reached the supplier within its 48h window of delivery (Al Noor Ceramics)
- Then
- Approve the credit note and send it to the supplier.
Where this came from- When
- The GRN has no damage note
- Then
- Return the credit note for information to Customer Ops and ask the warehouse to annotate the GRN.
Where this came from- When
- The credit note has been applied to the held invoice
- Then
- Release the payment hold and email the supplier that payment is released.
Where this came from
Conflicts to resolve
- Priya emails the supplier after submitting the credit note; Sara emails the supplier the same day without waiting for approval when a photo deadline applies.
- Priya says Customer Ops only raises the issue and Finance sends the claim; Sara (Customer Ops lead) raises and sends it herself.
Corrections waiting for review
No corrections waiting for review.