Credit Notes

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.

Creating a Credit Note

You can create a new credit note by following these steps:

  1. In the Invoiced application go to the customer account that will be receiving the credit note.
  2. Click the + button underneath the customer's balance and then New Credit Note.
  3. Add the line items that you wish to credit to the customer.
  4. 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 ActionsIssue Credit Note. The credit note will have the details pre-populated and upon creation will attempt to apply the credit note to the invoice.

Applying Credit Notes

Once a credit note is issued you then need to apply it in order to close out the balance. Credit notes can be applied to invoices (recommended) or added to the customer's credit balance.

Apply Credit Note to Invoices

Once a credit note is created and issued you can then apply it to invoices on the customer's account. You can do this by following these steps:

  1. Open the credit note in the Invoiced web application. You can find open credit notes on the customer account page or on the Credit Notes list.
  2. Click Apply to Invoice.
  3. The open invoices for the customer will be loaded. Enter the amount that you wish to apply to each invoice.
  4. Click Apply to complete the selection and apply the credit note.

Add Credit Note to Credit Balance

Instead of applying a credit note to invoices, you can add it to the customer's credit balance. Adding a credit note to the customer's balance is an advanced workflow. In typical accounts receivable workflows it is recommended to apply credit notes directly to invoices.

  1. Open the credit note in the Invoiced web application. You can find open credit notes on the customer account page or on the Credit Notes list.
  2. Click Issue Credit.
  3. The remaining balance of the credit note will be added to the customer's credit balance and the credit note will be closed.