Synergy has three types of credit notes available: cancel credit, discount credit note, and a write-off credit. Learn more about the actions available for credit notes.
Setup required before use | Who can use it? | Where is it? |
---|---|---|
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Assistant project manager* Project manager Director access Assistant system administrator System administrator
*Unable to finalize credit notes.
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Project > Open invoice > Create credit note |
Tip: Learn more about printing credit note documents.
What are credit notes?
A credit note are created to send a document to the client showing they have been refunded an amount from a previous invoice. Credit notes are created for the entire original invoice value (cancel credit), or for part of the original invoice value (credit discount or write-off). Select which of the credit note options to use based on your current reason for creating a credit document:
Why use credit notes?
Create a credit note to re-do an invoice document, or provide the client with a discount.
Actions available
Different actions are available for each of the credit note types. Use the table below to help determine which type of credit note you need to create, based on the type of actions you require to complete.
Action | Credit note | Cancel invoice | Write-off invoice |
---|---|---|---|
Credit invoice value in full | Y | ||
Markdown invoice by a value | Y | Y | |
Return transactions to WIP | * | Y | |
Remove aged debt | Y | ||
Creates a credit note and document | Y | Y | Y |
*Feature is coming in a future release of Synergy.
Credit notes are created for invoices when there is a dispute about the amount the client will pay for the invoice.
There are two types of credit notes that can be created using this option, one that discounts the client a fixed value, and the second option where you build the credit note value by selecting which transactions to return to WIP.
For example this could be a dispute about the project works completed to date and the project manager is offering a $500 discount. Another example is that the wrong transactions (timesheets and expenses) were attached the invoice, the items were meant to be invoiced next month. The transactions now need to be credited against this invoice, and re-invoiced to the client on a future invoice.
Create a credit to 'discount' the invoice by:
- Open the project > invoices tab.
- Click to open the invoice for which you want to create the credit note.
- Select the page actions button and select the 'cancel or credit invoice' option.
- Select the 'credit note' option.
- Enter the following general (optional) credit note details:
- Reason - type a reason to explain why this credit note is being created. This can be printed on a credit note document.
- Prefix and number - select an alternate credit note number prefix, and assign the next available number in the sequence.
- Credit date - set the date for the credit note document. Choose either the 'invoice date', 'today's date', or select a date from the calendar.
- In the stages table create the credit note value by entering either the percentage or dollar value that you want to credit (ex tax) for each of the stages.
- Check that value for the credit note is correct in the totals section.
- Save.
Tip: Make sure that the credit note date is not in a 'locked period' in your accounting system.
Use the write-off credit note option when the unpaid owing invoice value will not be paid by the client. For example the client has gone out of business and now is unable to pay the full amount of the invoice owing.
Add a payment for the part of the invoice that the client can pay, and the write-off the outstanding value. Write-off the value to stop it appearing in the aged debtor reports.
Write-off the owing invoice value by:
- Open the project > invoices tab.
- Click to open the invoice for which you want to create the write-off credit.
- Select the page actions button and select the 'cancel or credit invoice' option.
- Select the 'invoice write off' option.
- In the write-off credit note creation page enter the following (optional) details, or leave these items set to the default values.
- Reason - type a reason to explain why this write-off credit note is being created. This can be printed on a write-off credit note document.
- Prefix and number - select an alternate credit note number prefix, and assign the next available number in the sequence.
- Credit date - set the date for the credit note document. Choose either the 'invoice date', 'today's date', or select a date from the calendar.
- Save.
Tip: Make sure that the write-off credit note date is not in a 'locked period' in your accounting system.
When a credit note is created you can opt to save it as a 'draft' version, or to create a finalized credit note version. This is available for a discount credit note, or a write-off credit note. Save the credit note as a draft if you need to check the contents with your manager before the credit note can be finalized.
When you open an invoice an orange color banner is shown at the top of the page if a draft credit note is attached. Actions available for a draft credit note are:
- View and finalize - Click this option to open the draft credit note to check the details. If the details are correct click the arrow options to the right of the save button and select the 'save and finalize' option.
- Delete - Remove the draft credit note by clicking the word 'delete' in the orange banner in the open invoice, or in the open credit note click the page actions button and choose the 'delete credit note' option. Only draft status credit notes can be deleted.
Tip: Cancel credit notes cannot be saved as a draft. Cancel credits must be finalized or canceled.
Use this method when a finalized invoice has already been created, and invoice has now been found to be incorrect. The invoice document hasn't been sent out (shared, emailed, posted) to the client yet, so you can still make amendments to the invoice document.
Canceling an invoice marks the original invoice document as credited, and returns all the attached transactions to WIP. This means that the transactions and the agreed fee can be re-invoiced to the client on a new invoice created.
Cancel an invoice by:
- Open the project > invoice tab.
- Select the page actions button and select the 'cancel or credit invoice' option.
- Choose the top 'cancel the invoice' option in the pop-up window.
- (Optional) Type a 'reason' for the invoice being canceled. This will appear as the invoice / credit summary note.
- Credit note numbers are assigned by default when this is created, using the default credit note numbering option setup. (Optional) Select an alternate credit note number prefix, and assign the next available number in the sequence.
- (Optional) Set the date for the credit note document. Choose either the 'invoice date', 'today's date', or select a date from the calendar.
- Save.
- Next - learn more about printing credit documents.
Tips:
- The invoice cannot be deleted is a credit note, or a part invoice payment exist already for the invoice.
- Canceled invoice can be deleted by your Synergy System Administrator.
- Cancel credit notes must not be before the date of the original invoice document.
- Canceled invoices can be deleted by the Synergy System Administrator. Delete will remove the original invoice and the cancel credit note to allow you to re-use the invoice / credit numbers if required. Learn more about deleting project invoices.
Use this option a credit note document to change either the credit note number, or the date of the credit note document.
Modify the credit note by:
- Open the project > invoices tab and locate the credit note you want to update.
- Click the row action button and choose the 'modify' option.
- Update on of the following details:
- Prefix - the current prefix applied is shown. Select an alternate prefix from the list if required.
- Number - the current number applied is shown. Type in a new number, or click the refresh button to select the next available number in the sequence for the prefix. Numbers are unique for the prefix selected, which means the same number and cannot be used on multiple entries for the same prefix.
- Date - the date currently applied to the credit note document is shown. Select an alternate date from the calendar if required.
- Save. The invoice list is refreshed showing the updated credit note document.
Tip: The number assigned to the credit note is unique. You can only apply a different number that has not been used on another invoice or credit.
If a discount credit note or a write-off credit note were created by mistake, you can use the undo the credit note option. This option is not available for a canceled invoice, or for credit notes created using the 'return transactions to WIP' method.
Undo the credit note by:
- Open the project > invoices tab.
- Click to open the credit note entry that you want to reverse / undo.
- Select the page actions button and choose the 'reverse credit note' option.
- (Optional) Type a reason for the credit note reversal.
- (Optional) Select an alternate credit note prefix, and assign a credit note number.
- (Optional) The reversal credit note defaults to use today's date. Select the date for the credit note. Use the options above the date field to set it to be today's date or the invoice date. You can also select a date from the drop down calendar by clicking into the date field.
- Save.
Tip: There is no undo for a credit note reversal, so be sure that this is what is required before you save this change.
Each time a credit note is created a document is also automatically generated. The document is built using the default credit note template setup by your System Administrator.
Learn more about the options for creating and sharing credit note documents.
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