- Create a credit note to reduce an amount your customer owes.
Create a credit note to process a cash refund, or offset it against an invoice or bill.
Sometimes you need to charge less than the amount of an already issued invoice. This usually happens to correct a mistake, such as when an invoice amount is overstated, the correct discount rate is not applied and so on. You can achieve this in OfficeR&D using a Credit Note (CR).
In order for a CR to take effect, you have to allocate it to an existing Invoice. There are two ways you can do that:
- Open an invoice, create a Credit Note and it will automatically get allocated to the opened invoice
- Create a Credit Note, go to an Invoice and allocate it manually
Allocate a CR to an invoice directly
- Open up an existing invoice and click the yellow Credit Note button on the top right.
- A dialog will appear with all items already present in the invoice.
This way you can select which items you would like to allocate a credit for. You can check/uncheck items you would like to include or exclude. Click Add and it will automatically get allocated to the invoice.
Allocate a Credit Note manually
Note: This type of allocation only works for invoice that haven't been paid. If an invoice has been paid, the way to credit note it is to credit note it directly by following the steps previously described in the article
- Go to Billing/Invoices and click the blue Add credit note button on the top corner.
- A dialog similar to the invoice dialog will pop up where you can select a team/individual, issue date and add items and amounts which will be deducted from the invoice to which the CR will be allocated.
- Once you click Add/Add & Send you will have a record similar to the following in the invoices list
You have now successfully created a credit note. In order for it to actually take affect you will have to allocate it to an invoice.
- Open the newly created credit note.
- Under Allocations click the Allocate credit button.
- 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.