Credit Notes

A Credit Note allows us to correct, cancel invoices, or record items returned by our customers. These can reduce accounts receivable from the invoice or record a credit balance for the customer for future purchases.

1. Creating a Credit Note

To initiate a new credit note:

1. Navigate to the Sales section in the main menu, and then click on Credit Notes.
2. Within the list of Credit Notes, locate and select the (+) button.
3. In the ensuing window, pick the invoice from which the Credit Note will be derived.
4. Select the Credit Note Type, specifying whether you wish to exclude taxes, and indicate the status (Draft or Open). The remaining details will be populated automatically.
5. In the content section, you will find the inventory of items listed on the invoice, which will either be returned or credited. If you are not going to void the entire invoice, simply remove the items that won't be included in the credit note.
6. Once you've made all necessary adjustments, hit Save to preserve the document.

2. Editing a Credit Note

To make changes to a credit note:

1. Go to the Sales section in the main menu and click on Credit Notes.
2. In the list of Credit Notes, locate the credit note you wish to edit.
3. Click on the actions menu (three horizontal dots).
4. Select Edit.
5. Make the necessary adjustments.
6. Click Save to save the changes.

3. Deleting a Credit Note

There may be occasions when it is necessary to cancel a credit note. This can be due to an error or mistake. To delete a credit note:

1. Go to the Sales section in the main menu and click on Credit Notes.
2. In the list of Credit Notes, locate the credit note you wish to delete or cancel.
3. Click on the actions menu (three horizontal dots).
4. If the credit note is in Draft status, you will have the option to Delete.
5. If the credit note is in Open status, it cannot be deleted as it has a financial record. In this case, you will have the option to Cancel Document.
6. You will be prompted to confirm the action.

4. Applying a Credit Note to an Invoice

To apply a credit note to an invoice:

4. Go to the Sales section in the main menu and click on Invoices.
5. In the list of Invoices, locate the invoice to which you want to apply the credit note.
6. Click on the actions menu (three horizontal dots), and then select Apply Advance.
7. In the Advances and Deposits section (tab), in the list, choose the credit note you want to apply by clicking the checkbox and enter the amount to apply.
8. You can apply more credit notes to this invoice by repeating the previous step.
9. Once you are ready, click Save.

5. Refunding a Credit Note

To refund or return the money from a credit note:

1. Go to the Banks section in the main menu and click on Checks and Payments.
2. In the list of Checks and Payments, click the (+) button and then select New Payment.
3. Choose the bank account, beneficiary, payment method, date, and memo.
4. In the Accounts Payable (AP) section (tab), click the (+ Payable) button.
5. In the window that appears, in the list, select the credit note you want to refund by clicking its toggle switch.
6. Click the "X" at the top of the window to close it and return to the payment.
7. Back on the payment screen, click Save.

6. Sending a Credit Note via Email

With the "Send by Email" feature, you can send credit notes in PDF format to your customers via email. To send a credit note via email:

1. In the main menu, go to Sales and then click on Credit Notes.
2. In the list of Credit Notes, locate the credit note you want to send by email.
3. Click on the actions menu (three horizontal dots), and then select Send by Email.
4. Fill in the fields for To (customer's email), Subject, and Message. These details will come by default, but you can make any necessary adjustments.
5. If you need to include a BCC or CC, click on the link next to the To field.
6. Click Send to send the email.

7. List of Credit Notes and Actions Menu

The credit notes module provides a list of all generated credit notes and a set of options in the action menu (three horizontal dots) for each credit note, allowing you to manage and track each transaction easily. The options in this menu are as follows:

• Preview
  This option allows you to preview the credit note as it would appear when printed or sent to the customer.
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• Edit
  If you need to make changes to a credit note, this option allows you to edit it. Keep in mind that you can only edit a credit note when it is in the draft state.
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• History
  This option allows you to view the transactions associated with this credit note.
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• Attach File
  You can use this option to add files related to the credit note, such as attachments or supporting documents.
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• Audit Trail
  The audit trail shows the changes made to the document, providing a detailed tracking of modifications.
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• Send by Email
  This option enables you to send the credit note directly to the customer via email.
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• Delete
  If, for any reason, you need to remove a credit note, you can do so using this option. Note that you can only delete credit notes in the draft state.
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• Void Document
  When the credit note is in the open or closed state and needs to be voided, you can use this option. A voided credit note cannot be deleted.
  

Tips & Best Practices

• Make sure to clearly describe the reason for the credit note in the memo or notes section. This will help eliminate confusion in the future.
• Issue credit notes as soon as the need arises. This can help maintain good customer relationships and improve your cash flow.
• Always inform your customer when you issue a credit note against their account. This keeps them informed and can help prevent misunderstandings.
• Once a credit note has been issued, it should not be altered. If changes are required, it is generally better to issue a new credit note.
• Define a process and assign responsibility for creating and approving credit notes. This can help prevent errors or fraud. You can achieve this by assigning credit note permissions to a specific individual.

Common Issues

Here are some common problems with the sales modules and their solutions.

• I can't see the credit note option in the menu
  Make sure you have the necessary permissions to access credit notes. If you are not an administrator, contact the account administrator to assign you the permission. If you are an administrator, to activate the permission, go to Settings > Platform > Permission Groups, go to the Sales > Credit Notes section, and enable the functionality by clicking on the switches.
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• I cannot apply a credit note to an invoice
  This could be because the invoice has already been paid or closed. In this case, you can only apply the credit note to a new invoice.
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• I can't refund a credit note
  If you can't see a customer's credit note in the accounts receivable list in the checks and payments module, it could be because the credit note is still in draft status, has been canceled, or has already been applied to an invoice.
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• The details of the credit note are incorrect
  If the credit note is still in draft status, you can edit it directly. If it is already open or closed, you will need to cancel it and create a new credit note with the correct details.
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• The customer has not received the credit note
  First, verify that the customer's email address is correct. Then, check that the email with the credit note is not in their spam folder. If the customer has not received the credit note, try resending it.
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• I can't delete a credit note
  You can only delete a credit note that is in draft status. If the credit note is already open or closed, you will need to cancel it instead of deleting it.
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• Some fields are not displayed in the credit note
  You must enable these fields in Settings > Documents > Document Settings. In the list of documents, go to Sales and click on the Credit Notes line, then click on the settings icon. In the Display Columns options, activate the columns you want to display in the document view and print view. Then click Save. Remember to exit and re-enter the credit note document to see the changes.

Remember that if you are unable to resolve the issue, it is always best to contact technical support for assistance and to avoid potential errors that could affect your accounting records.