- 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
Note: The QuickBooks integration doesn't support allocating credit notes to invoices, please see below what to do in such cases.
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.
Note: 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 an error that "some of the fees are either not paid or not invoiced".
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.
Allocating credit notes when using a QuickBooks integration
The QuickBooks integration doesn't support allocation of credit notes to invoices. Because of that if an invoice that has a credit note allocated to it it will display an error.
If you need to allocate a credit note you can do the following:
- Make sure that the invoice you've issued has been synced to QuickBooks.
- Issue a "Refund Receipt" in QuickBooks in order to record the refund for the customer.
Make sure to copy the number of the refund receipt so that you can use it to create a credit note in OfficeRND
- You can then create a credit note in OfficeRND as per this article and then allocate it to the appropriate invoice.
Make sure to use the same number for the credit note as the one that you used for the refund receipt in QuickBooks.
- When you try to sync the credit note the sync will display an error that there's already an existing document with that number, you can go ahead and "Disconnect" the credit note from QuickBooks.
- You can then Disconnect the invoice from QuickBooks as well so that a sync error doesn't appear because of the allocation.
After following all those steps everything should be reconciled in both systems.