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:
- Canceling the invoice - this method creates a credit note for the entire invoice, and returns all the attached transactions to WIP. E.g. Used when the invoice was created by mistake, or the wrong transactions were attached to the invoice.
- Discount the invoice - this is the credit note method which allows you to apply a discount to the invoice by an entered value. E.g. There is an invoice dispute that the manager has resolved by agreeing to apply a discount to the invoice of $500.00.
- Write off the owing invoice value - this method will write-off the owing invoice value, as the client is not going to pay this invoice. E.g. Used when a client has gone out of business and cannot pay the invoice.
Why use credit notes?
Create a credit note to re-do an invoice document, or provide the client with a discount.