Allocating Credit Notes in Flex ensures that invoice corrections or refunds are properly recorded and reflected in billing. You can allocate a Credit Note directly when creating it from an invoice or manually apply an existing Credit Note to an unpaid invoice.

This article explains how to allocate Credit Notes, including cross-location allocation settings and limitations for the QuickBooks integration.

Before you start

Familiarize yourself with how invoicing works. Get started with invoicing →
Understand Credit Notes →
Create Credit Notes →

Enable allocating Credit Notes to invoices in different locations than their home location

By default, you cannot allocate a Credit Note created in one location to an invoice in another location. However, if you turn on Credit notes can be allocated to invoices from other locations (found in Settings > Billing > Invoicing), the system will allow you to allocate a Credit Note created in location A to an invoice in location B.

Limitations

You can only issue one Credit Note per invoice. If you attempt to issue more than one Credit Note per invoice, the system will display the following error: "Some of the fees are either not paid or not invoiced."

Additionally, the QuickBooks integration doesn't support recording refunds for Credit Notes. Please read below to see what to do in such cases.

Allocate a Credit Note

For a Credit Note to take effect, you must allocate it to an existing Invoice.
There are two ways you can do that:

Open an invoice and create the Credit Note from its page.
Create a Credit Note, go to an Invoice, and allocate it manually

Allocate a Credit Note to an invoice upon creation

Open an existing invoice, then click the yellow Credit Note button in the top-right corner.
A dialog will appear with all items already present in the invoice. Select which items you want to allocate credit for. You can select or clear items you would like to include or exclude.
Click Add, and the Credit Note will be automatically allocated to the invoice.

Allocate a Credit Note Manually

This type of allocation applies only to unpaid invoices. If an invoice has been paid, credit the note directly by following the steps described above.

Go to Billing > Invoices and click the blue Add Credit Note button.
A dialog similar to the invoice dialog will open. Here, you can select a team or individual, and the issue date, and also add items and amounts to be deducted from the invoice to which the Credit Note will be allocated.
Click Add or Add & Send. You will have a record similar to the following in the invoices list:
You have now successfully created a Credit Note. For it to take effect, you must allocate it to an invoice:
1. Open the newly created credit note.
2. Under Allocations, click Allocate credit.
3. In the dialog, select an invoice to which this credit should be allocated.
Click Add to allocate the credit and charge the customer with the appropriate decreased amount.

FAQ: Credit Notes in OfficeRnD Flex

What is a Credit Note?

A Credit Note reduces the amount of a previously issued invoice, typically to correct an error or apply a discount that was not initially included.

How do I allocate a Credit Note upon creation?

To create a Credit Note directly from an invoice, click Credit Note on the invoice page, select the items to credit, and click Add.

Can I manually allocate a Credit Note?

Yes. After creating a Credit Note, open it from your invoice list, click Allocate credit, select the invoice you want to adjust, and click Add.

Can I allocate Credit Notes to invoices from different locations?

By default, you cannot allocate Credit Notes to invoices from different locations. To enable this, you must go to Settings > Billing > Invoicing and turn on Credit notes can be allocated to invoices from other locations.

I issued a Credit Note in the wrong Revenue Account. How to fix it?

If you have issued a Credit Note to the wrong Revenue Account, you must:

Open the Credit Note.
Remove the allocation from it.
Void the Credit Note.
Issue a new one linked to the correct Revenue Account.

[Flex] Allocate Credit Notes to Invoices