Applying Credit Against Invoices

If you've got a situation where a customer has returned early, or otherwise leaving their invoice with a negative refundable amount such as an overpayment, you can instead apply this as a credit to other records, via one of two methods below:

If you have exported to Xero, Quickbooks or MYOB

In Sales > Sales if you click the dropdown arrow on the New invoice button, it will give you more options, one of which is "New Credit note".

For this credit note, you'll want to either add in the items they are being credited for, or use a generic placeholder item, and put the same negative value as the refundable invoice.

Then, you'll want to go back to the invoice, and add in a line that zeroes out the negative value, and give it a name like Credited to Credit note (number).

Because you cannot export the same invoice twice, you will then need to export the credit note instead.

Refer to this help doc for more information.

If the customer has other outstanding invoices:

You can simply go to the "Payments > Receive payments" screen for that customer, select the negative invoice, then the invoice(s) you wish to apply the credit to.

Then, in the amount received put in any additional amount received, or if you only wish to apply the credit, you'd set the "Amount received" to 0.00.

If you wish to create a credit note for use later:

In "Sales > Sales" if you click the dropdown arrow on the "New invoice" button, it will give you more options, one of which is "New Credit note".

For this credit note, you'll want to either add in the items they are being credited for, or use a generic placeholder item, and put the same negative value as the refundable invoice.

Then, you'll want to go back to the invoice, and add in a line that zeroes out the negative value, and give it a name like "Credited to Credit note (number)"

 Applying credit to invoices

Then, when you wish to apply it, as in option 1, you can go to the "Payments > Receive payments" screen for that customer, select the credit note, then the invoice(s) you wish to apply the credit to.

Then, in the amount received put in any additional amount received, or if you only wish to apply the credit, you'd set the "Amount received" to 0.00.

Credit Notes can be applied against invoices via Payments > Receive Payments.  They can be applied when receiving an actual payment, or you can just offset existing credit notes and invoices and receive the payment as $0.00.

When receiving any payment, the credit notes are automatically listed and applied first, followed by the oldest to newest invoices.  However the line by line values applied can be overwritten.


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