How to Add a Credit Note

Introduction

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 OfficeRnD using a Credit Note (CR).

Contents

How to Create a Credit Note

There are three ways to create a Credit Note. Each can be useful, depending on the case.

Create a Credit Note Manually

  1. Go to Billing & Products/Invoices.
  2. Click on the Add Credit Note button.
  3. Fill out the Credit Note details and hit Add.
    addcrnote.png
Note that manually added Credit Notes will not have any details filled out by default. You will have to select a Company or Member for whom you are raising credit. The Credit Note will also not have any line items. They must be added manually, which will automatically put them under the default One-off fees account.

Create a Credit Note from an Invoice

  1. Go to Billing & Products/Invoices or a Member/Company's Profile and open the invoice you'd like to credit.
  2. Find and use the Credit Note option on the top-right.
  3. All details should be filled out by default, but you can make changes if needed.
  4. Hit Add and you're ready!

    add_cr_note.png

Create a Credit Note from a Fee

  1. Go to Community/Fees or open a member or team profile and find the Fees section.
  2. Find the Fee you'd like to credit and click on the cogwheel on the right of its nameл
  3. Select the Credit Note option
  4. All details should be filled out by default, but you can make changes should they be needed - such as the credited amount
  5. Hit Add and you're ready!
    add cr note.png

Allocate a Credit Note

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 and create the Credit Note from its page.
  • Create a Credit Note, go to an Invoice and allocate it manually.
Note: The QuickBooks integration doesn't support recording refunds for credit notes. Please read below about see what to do in such cases.

Allocate a CR to an Invoice Upon Creation

  • Open up an existing invoice and click the yellow Credit Note button on the top right.
    cr note ye.png
  • A dialog will appear with all items already present in the invoice. 

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This way you can select which items you would like to allocate 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.

You can only issue one credit note per invoice. If you try 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".


Allocate a Credit Note Manually

This type of allocation only works for invoices that haven't been paid. If an invoice has been paid, the way to credit note it is to do it directly by following the steps described above.

1. Go to Billing & Products/Invoices and click the blue Add credit note button on the top corner.

addcrnote.png

2. 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.

add credit note 222.png

3. Once you click Add/Add & Send, you will have a record similar to the following in the invoices list:

INV_CR_example_.png

You have now successfully created a credit note. In order for it to actually take effect, 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.

4. Click Add to allocate the credit and charge the customer with the appropriate decreased amount.

Enable allocating Credit Notes to invoices different from their home location

By default, you cannot allocate a credit note created in one location to an invoice in another location. However, enabling the Credit notes can be allocated to invoices from other locations setting (found in Settings/Billing Settings/Billing Rules), the system will allow you to allocate a credit note created in location A to an invoice in location B.

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