Managing refunds and credit notes in HirePOS is essential for handling situations where invoices are returned early or overpaid. This guide provides detailed steps on how to create credit notes, apply them against invoices, and manage negative balance invoices efficiently.

Create Credit Note

To create a credit note in HirePOS, follow these steps:

Go to Sales/Hire > Customer Overview and search for the customer.
Click the drop-down next to the + New Invoice button and select New Credit Note.
Ensure the Line Totals and overall Credit Note Total are negative.
When adding Sales items, set the Qty/Units to a negative value to adjust stock levels.

Applying Credit Notes Against Invoices

To apply existing credit notes against invoices:

Go to Payments > Receive Payments and select the customer.
Choose the Negative Invoice/Credit Note and the invoice(s) to apply the credit to.
Enter any additional amount received or click Offset Credits Only to apply the credit only.

Please note that the Offset Credits Only button is an assistance tool designed to pre-fill information for you. In complex situations, it may produce incorrect or unexpected values. Therefore, always review the Applied column to ensure the values are accurate.

Applying Negative Balance Invoices

If you need to apply negative balance invoices:

Manually adjust the amount applied when transferring negative balances between invoices.
Calculate and distribute the negative balance across multiple invoices accordingly.

Credit Notes and Xero

If you use the Xero exporter, create credit notes in HirePOS as Xero does not allow negative balances on invoices. Split any remaining negative balance into a credit note for accurate export.

Credit Note Placeholder

To create a placeholder item for credit notes:

Go to Setup > Items and create a new item named "Credit Note Placeholder".
Set the item type to Misc and configure it as Non-Stock with an Each price of 0.00.

Zero out the Invoice

To zero out an invoice with a negative balance:

Add the Credit Note Placeholder item to the invoice.
Adjust the placeholder's line total to match the credit owed, resulting in a Balance due of 0.00.
Optionally, rename the placeholder's description for customer clarity.

Create the Credit Note

To create a credit note for the negative value:

Go to Sales/Hire > Customer Overview Screen.
Select New Credit Note from the drop-down next to the +New Invoice button.
Add the Credit Note Placeholder item with the same negative value as the original overpaid invoice.

Credit Notes & Refunds