Managing sales credit notes is essentially the same process as managing sales documents, with only slight alterations. You may issue sales credit notes in case:
- you wish to cancel an already issued sales document
- your clients return a sale or you want to apply a discount on invoiced goods
- you wish to give your client a refund
From the main menu select "Invoicing -> Credit notes (Sales) -> Add".
Unlike debit documents, here you can link related invoices/receipts, and they will appear on the official document. Through the "Related documents" field, select the document to which the credit applies.
The other difference is that the payment of a credit document always refers to the refund of the customer for an already paid off sales document. So when you add payments to credit invoices/receipts you create an expense instead of a revenue.
Caution: In order for the customer's balance to be right after a refund you have to reconcile the credit note's value with the value of the invoice. This can be done by adding a payment, either from the sales document view page or from the credit note's page by selecting "Apply credit".
Paying off a credit note
Suppose you have issued an invoice and your customer returns part of the order back without having paid it off. You need to issue a credit note for the returned items and also reduce the customer's balance in the system.
This can be done by reconciling the amounts of the debit and credit documents by entering a new payment using credit. It does not matter whether the payment will be made from the invoice or the credit document view page.
In our example the sales document has a total value of £1,440.00 and the returned items cost £1,200.00.
Clicking on the add payment button, this window appears:
Select Apply credit and press Next. The system will fetch you any credits to associate with the invoice.
Clicking Save, Elorus will pay off the credit note an will reduce the invoice's due amount.
If in the example above the sales invoice was paid, then you will not be able to associate it with the credit, but you should choose the "Add new payment" method, which means you are refunding the money you received for the returned products.
- We would like to clarify that a sale or purchase document "on credit" does not have the same meaning as credit sales/purchase documents. The documents on credit are documents indicating that the payment will be made in the future and not upon delivery.
- Purchase credit notes are created in the same way as sales credit notes.