You can raise credit notes using either of the following methods:
- By using the View Invoice task on the Accounts page to open the invoice you wish to credit. Then using the Issue Credit Note task on the invoice to display a credit note showing all of the lines from the invoice. You can then make any changes you require (e.g. by deleting lines you do not wish to credit) before clicking Save to save the credit note.
- By producing them in same way as invoices except using the Issue Credit Note link in the task list on the Accounts page instead of Issue Invoice.
When you save the credit note you are prompted to use a Receipt to allocate the credit to an invoice.
How do I allocate a credit note to an invoice?
To allocate a credit note to an invoice use Record Receipt on the Accounts page to record a receipt of £0.00. This will allow you to offset the value of the credit note against the corresponding invoice(s). This is done as follows:
- In the Allocated column on the row showing the credit note enter in the the value of the credit note with as a negative amount (e.g. if the credit note is for £50 enter -50.00 in the Allocated column alongside the credit note).
- In the Allocated column on the row showing the invoice enter the value of the credit note with no sign (e.g. if the credit note is for £50 enter 50.00 in the Allocated column alongside the invoice).
- Check that the Unallocated value is 0.00 and if it does click the Save button and confirm to complete the allocation. If it doesn’t equal 0.00 check that you have entered the same value in steps 1 and 2 with the credit note value as negative (i.e. with a minus sign in front) and the invoice as a positive value (i.e. no sign).