Hello,
When you create a Sales or Purchase Credit Note, Returned Goods record or Returned Goods to Supplier record, the Nominal Ledger Transaction will usually reverse the postings of the original Invoice, Delivery or Goods Receipt.
For example, in the case of the Sales Credit Note, the Debtors Account will be credited and the Sales and Output VAT Accounts will be debited.
If you are using this option, negative amounts will be posted, on the same side as in the original Transaction. In the case of the example Sales Credit Note, negative amounts will be debited to the Debtors Account and credited to the Sales and Output VAT Accounts.