Knowledgebase

Credit Notes Management

Credit Notes Management

Credit Notes play an important role in the invoicing process, although they’re not always frequently used, and so can be a little confusing to understand. In this article, we demystify credit notes so you know exactly what they are, when and how to use them.

What is a credit note

A credit note is a commercial document just like an invoice that gives you the important ability to cancel out an already issued invoice, either in full or in part. In otherwards it is evidence to a customer that the amount to be paid has been reduced.

When is a credit note issued

There comes a time when humans err in making an entry or a transaction. These cases often lead to anomalies and a further reconciliation is required between the interacting parties to make correct, such anomalies.

Such an erroneous situation leads to the creation of what we call a credit note as explained in this article or a debit note, wherever applicable. In such a case, canceling an order that has been generated in case there is any may be necessary before creating the credit note. A credit note therefore can be issued if for example a customer:

  • Has been incorrectly charged
  • Receives damaged or deficient goods
  • Accidentally sends an invoice
  • Cancels an order
  • & so much more ...
What does a credit note contain

Generally, the format of a credit note is very similar to that of an invoice or quotation. But unlike credit notes in particular, the format and structure is less strict.

A credit note may include the following information:
  • Date when the credit note was issued
  • Credit note number
  • Customer reference number
  • Contact details
  • Reason for issuing the credit note
  • & so much more ...
How to locate a credit note

From your administrative dashboard, on the left main menu navigate to Credit Notes under Accounts as shown in the screenshot below



What can be done on the credit notes page

Adding credit notes

To add a credit note, navigate and click on the plus button next to the tab with the title Credit Notes.
Enter the details of the credit note such as the owner id of the person whose account is to be credited, their account number, the account number of your company that is to be debited, the name of the asset, the amount, some description about the credit note then saving once all is properly set then clicking on Save & Close.



Searching or downloading credit notes

To search or download a credit note, expand Report Statistics & Controls Tab by clicking on the plus sign on the tab. You then have to select the criteria you would like to use to search for such as credit note number, credit note date, ownerid among others by choosing it from the drop down where the left arrow is pointing.

Enter the search query in the space where the right arrow is pointing and click on either search or download depending on what you would like to do.



Viewing a report about credit notes

You can be able to view more details about credit notes by clicking on the plus button next to the credit note whose details you are interested in. This will help you know the status of the credit note, the amount that the client was paid, the date when the payment was made, the details of what is paid for amon others.

You can also be able to view the details of the actual credit note that was sent to the client by clicking on the credit note number as shown in the screenshot below.

The buttons shown give you the ability to do further manipulation of the credit note such as editing, expanding to a full view, printing the credit note in a browser or downloading it.


Once a credit note is created in G7Bill, it could take up-to three people for it to be approved and in the process its status is changed accordingly.
Credit notes verification statuses

Pending
The first state of the credit note upon saving and closing
  
Confirmed
The state changed to after first checking and verifying the details
  
Approved
The state that is changed to approval of the transaction
  
Closed
The final automatic state to conclude the transaction