Create a credit note from an invoice and from scratch

Following the meeting with Mary, Linda shows the sales team how to make a credit note and what to consider when generating it.

Reminder: a credit note is a negative invoice sent to a customer in order to totally or partially cancel an already issued invoice. A credit note can also be used to refund or apply a commercial discount.
Frisbii allows you to create, clone and edit credit notes, which are visible in the related list in your invoice.

Prerequisites

Linda shows the sales team the procedure for creating a credit note.
For this, certain conditions must be met.

The original invoice is issued.
The total amount of the invoice is greater than zero.

There are two ways to create a credit note: from an invoice and ex-nihilo.

Creating a credit note from an invoice

When generating a credit note invoice from an invoice, the standard fields are copied (Account, Corporate name, Contact...) but not the custom ones.

See the article Cancellation of an invoice issued with a credit note in order to know which fields are copied between the invoice and the credit note.

Steps

1.In the Invoices tab, go to the issued invoice.
2. Click on Generate Credit Note in the Credit Note related list.

3. Choose the subtype of the credit note:

Note: your choice will have an impact, depending on whether you wish to make a refund or a cancellation.

Refund: This option allows you to select the invoice line(s) on which you want to make the refund.

Cancellation: This option automatically takes into account all invoice lines. As the name suggests, these will be cancelled.

Additional discount: choose the discount rate you wish to apply.

Attention: Please indicate a rate higher than 0%.

Discount: choose the discount rate you wish to apply.

Attention: Please indicate a rate higher than 0%.

4. Select or not the Apply credit note to invoice check box.

This choice has the following consequences:

If the box is checked: the Status field of the credit note changes to Issued after its creation. As a result, the credit note record is no longer editable; the original invoice is adopted.
If the box is not checked: the credit note Status field is set to Draft after its creation. You can then make changes to the credit note record.

Good to know: the due date of the credit note is calculated according to the payment term on the invoice.

5. Click on Create credit note.

Create a credit note from scratch

It is possible to create a credit note ex-nihilo from the Invoice tab, in the same way as an invoice.
Reminder: A credit note is an invoice of type credit note.

Steps

1. Go to the Invoice tab.
2. Click on the New button in the Invoice tab and fill in the required information.
3. Choose the Type of invoice you wish to create, in this case: Credit note.

4. Save.
5. Click New or Manage Products, to add invoice line items, from the Invoice Line items related list.

For more details, you can also review this article Creation from scratch or from another object.

Pay an invoice with a credit note

Linda explains to the Billing team that the prerequisite for following this procedure is the creation of a credit note.

Steps

1. Go to the Invoice tab.
2. Open the invoice you wish to pay with a credit note.
3. Click on New Payment from the Credit Note related list.

This record updates the information in the Payment Summary section on your invoice and updates the Balance Due field.

4. Select in the Credit Note field the credit note you wish to attach to this invoice to partially or totally balance the invoice.
5. Fill in the additional information.
6. Save.

Reverse a credit note with an invoice

During these tests in the Cloud Kicks sandbox, Axel makes a mistake when creating a credit note. He knows that he can cancel a credit note by creating an invoice. To avoid double entry of information, he asks Linda how to proceed.

Steps

1. Open the credit note you wish to cancel (Invoices tab).
2. Click on the Clone button.
3.Switch the field Type of Credit note to Invoice.
4. Check all fields to ensure that the invoice matches the incorrect credit note.

If you changed the address and accidentally displayed the wrong address on the credit note, you need to check the account.
If used, you can also check the information in the accounting data.
Preview the PDF to check all data.

5. After checking, issue the credit note.

This is how to save time when reversing a credit note with an invoice!

Attention: In order to cancel an invoice with a credit note, follow the procedure described above!