Axel, the billing assistant at Cloud Kicks, has a problem. He has issued and sent the wrong invoice to a customer, and he doesn't know how to fix it. His first reaction is to contact Linda to find out how to proceed in this case.
What is a credit note?
A credit note is a document that a seller sends to a customer following incorrect invoicing or when a purchase is refunded. It corresponds to a negative invoice.
The credit note allows a previously issued invoice to be partially or totally cancelled, in this case a specific invoice needs to be linked to the credit note. For your customer and for you, the credit note provides proof of the total or partial cancellation of the original invoice, whether or not it has been paid.
Frisbii allows you to cancel an issued invoice by creating a credit note type invoice.
This does not delete the invoice and it must therefore still be posted.
The credit note subtypes available in Frisbii
Four credit note subtypes are available in Frisbii:
Additional discount: This is a discount made after the sale, depending on the size of the sale or the relationship with the customer. Thus, an additional discount for commercial reasons can be made after the invoice has been issued. In this case, you have to create a Credit note type invoice with an Additional Discount sub-type.
Discount: this is a reduction granted to a customer who pays in cash or within the agreed period. The discount is calculated on the gross amount of the invoice excluding VAT. Therefore, if the discount is granted after the invoice is issued, it is necessary to record the credit note corresponding to this discount.
Refund: partial refund on an invoice (unavailability of a product for example).
Cancellation: used to cancel an invoice from an accounting point of view, as its deletion is forbidden.
Subtypes can be added by following the procedure below:
Steps
2. Click on Fields & Relationships.
3. Open the field Sub-type.
4. In the Values section, click on New.
5. Add the desired subtype values.
6. Save.
7. Click again on Fields & Relationships.
8. Click on the button Field Dependencies.
9. Click on Edit.
10. Add the new values in the Credit note type list .
11. Save.
The added values will then be available in the Subtype picklist when creating a credit note
Field values included when creating a credit note from an invoice
When generating a credit note invoice from an invoice, the standard fields are copied to the credit note, which is not the case for custom fields.
Note : You can create an automation in order to copy the values of custom fields into a credit note.
Invoice > Credit note | Invoice line item > Credit note line item |
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Limits of a credit note
The French Commercial Code forbids the deletion of an issued invoice: the creation of a credit note is the only way to cancel an invoice for your customer. However, the initial invoice must still be posted, and its chronology number cannot be modified or reused (the Reference field is locked).
If you have issued an invoice in the future and you are blocked by the application, creating a credit note will not unblock you. In any case, you will not be able to issue an invoice with an earlier date as this would be against the regulation concerning numbering (in french) (based on a continuous chronological sequence, without gaps, of invoices).
If you are blocked, please contact our support case.
To prevent further errors, we strongly advise you to activate the validation rule preventing invoicing in the future : Emission_impossible_dans_le_futur (see below).
Validation rule Emission_impossible_dans_le_futur
Axel is now afraid to issue an invoice in the future, and to block Cloud Kicks' billing process.
Linda advises him to read the article Invoices - Explanation of error messages, which indicates how to avoid such a case.
Steps
2. Click on Validation rule.
3. Click on the rule Emission_impossible_dans_le_futur.
4. Click on the Edit button.
5. Check the Active box.
6. Save.
If Axel makes a mistake concerning the Invoice Date now, he will receive the following reminder:
Note: The formula of the validation rule is:
sofactoapp__Date_de_facture__c > TODAY()
You can create a new validation rule (this one is packaged, so it cannot be modified) to adapt this formula to your business needs, if it is too restrictive for you.
Here is the trailhead module on this subject: Validation rule creation.