Credit Notes & Refunds

Issue credit notes for overpayments, cancellations, and adjustments. Track refunds and maintain accurate financial records.

Overview

Credit notes allow you to:

• Issue credits for customer overpayments
• Handle service cancellations
• Make adjustments and corrections
• Track refunds
• Maintain accurate accounting records

Creating a Credit Note

From an Invoice

1. Navigate to Invoices
2. Open the invoice
3. Click Create Credit Note
4. Enter credit note details:
   • Amount (required): Credit amount (cannot exceed invoice total)
   • Reason (optional): Reason for credit (e.g., "Service cancellation", "Overpayment")
   • Notes (optional): Additional details
5. Click Create

Credit Note Numbering

Credit notes are automatically numbered:

• Format: CN-00001, CN-00002, etc.
• Sequential and unique per tenant
• Cannot be customized

Credit Note Status

Pending

• Credit note created but not yet applied
• Default status
• Can be edited or deleted

Applied

• Credit has been applied to invoice
• Credit amount deducted from invoice balance
• Cannot be edited

Refunded

• Credit has been refunded to client
• Final status
• Cannot be edited

Applying Credits

To an Invoice

1. Open the invoice
2. View Credits section
3. See available credit notes
4. Credits are automatically applied when invoice is paid

Manual Application

1. Open credit note
2. Click Apply to Invoice
3. Select invoice
4. Confirm application
5. Credit is deducted from invoice balance

Recording Refunds

From Credit Note

1. Open the credit note
2. Click Record Refund
3. Enter refund details:
   • Amount: Refund amount (cannot exceed credit note amount)
   • Refund Method: How refund was processed
     • Bank Transfer
     • Credit Card Refund
     • Check
     • Other
   • Refund Date: Date refund was processed
   • Reference Number: Transaction reference (optional)
   • Notes: Additional details
4. Click Record Refund

Partial Refunds

• Can record multiple refunds for one credit note
• Total refunds cannot exceed credit note amount
• Track each refund separately

Viewing Credit Notes

Credit Notes List

Note: The Credit Notes page is not currently accessible from the main navigation. To view credit notes:

1. Open the related invoice
2. View credit notes in the invoice details
3. Credit notes are also visible in the credit notes section when viewing invoices

Credit Note Details

1. Click on credit note
2. View:
   • Complete credit note information
   • Related invoice (if linked)
   • Refund history
   • Status and dates

Managing Credit Notes

Credit Note Reports

Viewing Credits

• Credit Notes Page: View all credit notes
• Client Details: View credits for specific client
• Invoice Details: View credits applied to invoice

Accounting Integration

Credit Note Accounting

Credit notes affect:

• Accounts Receivable (reduces AR)
• Revenue (reduces revenue)
• Client balance (reduces amount owed)

Refund Accounting

Refunds affect:

• Cash/Bank account (reduces cash)
• Accounts Payable (if applicable)
• Client balance (reduces credit)

Best Practices

• Document reasons: Always include reason for credit
• Link to invoices: Link credit notes to related invoices when possible
• Process promptly: Record credits and refunds promptly
• Track refunds: Record all refunds for accounting accuracy
• Review regularly: Periodically review credit notes and refunds
• Maintain records: Keep credit notes for audit purposes

Common Use Cases

Overpayment

1. Client pays more than invoice amount
2. Create credit note for difference
3. Apply to future invoice or refund

Service Cancellation

1. Service is cancelled mid-term
2. Create credit note for unused portion
3. Apply to account or refund

Billing Error

1. Invoice error discovered
2. Create credit note to correct
3. Apply to invoice or issue refund

Discount After Invoice

1. Discount agreed after invoice sent
2. Create credit note for discount amount
3. Apply to invoice

Troubleshooting

Can't Create Credit Note

1. Verify invoice exists and is accessible
2. Check credit amount doesn't exceed invoice total
3. Ensure client is selected

Can't Apply Credit

1. Verify credit note status is "Pending"
2. Check invoice is not already paid in full
3. Ensure credit amount doesn't exceed invoice balance

Refund Issues

1. Verify refund amount doesn't exceed credit note amount
2. Check total refunds don't exceed credit note
3. Ensure refund method is selected

Next Steps

• Managing Invoices - Create credits from invoices
• Managing Clients - View client credit history
• Reports - View credit note reports