A credit note, also known as a credit memo, is a document which a seller provides to the buyer to acknowledge that a credit has been provided to them. Invoiced allows you to issue credit notes to customers, just like invoices.
You can create a new credit note by following these steps:
- In the Invoiced application go to the customer account that will be receiving the credit note.
- Click the + button underneath the customer's balance and then New Credit Note.
- Add the line items that you wish to credit to the customer.
- Click Save and Issue to create the credit note. This will create an open credit note with a balance. The next step is to apply the credit note. You can also send the credit note to the customer.
There is a shortcut to create a credit note using the details from an existing invoice. You can access this shortcut by opening the invoice and clicking Actions → Issue Credit Note. The credit note will have the details pre-populated and upon creation will attempt to apply the credit note to the invoice.
Once a credit note is created and issued you can then apply it to invoices and other open items on the customer's account. You can do this by following these steps:
- Open the credit note in the Invoiced application. You can find open credit notes on the customer account page or on the Credit Notes list.
- Click Apply Credit Note.
- The open invoices for the customer will be loaded. Enter the amount that you wish to apply to each invoice.
- Click Apply to complete the selection and apply the credit note.
You can also configure your Invoiced account to automatically apply open credit notes to new invoices. If the invoice is on autopay, the credit note will be applied first. Then, autopay will collect the remaining invoice balance, if there is one. Go to Settings > Accounts Receivable > enable the setting “Apply Credits to New Invoices.”