A credit note is used when there is a need to reduce the amount a customer owes, correcting an invoicing error, or when writing off part or all of an invoice that will not be collected.
INTRODUCTION
The credit notes page is organised into tabs to help easily find records based on their status. Tabs include:
ALL: This shows all credit note records, regardless of status.
Draft Invoice: This shows credit notes in a draft status (Generate credit note task is not complete).
Invoiced: Invoiced credit notes have had the generate credit note pdf task completed. The credit note is available to send to the customer, but can still be updated if required.
Invoice Posted: Credit notes in a posted status cannot be updated and are ready to be imported into accounting software.
Cancelled: Cancelling a credit note will remove the credit amount and set back to 0. The record of the credit note on the invoice will be removed.
Each tab includes a table of columns which can be customised to show relevant data by using the 'Edit Columns' button. A side menu will open and options can be selected by toggling on / off.
Use filtering in the column headers to display relevant records for processing, including filtering by a task, customer or even billing frequency.
Click the filter icon to display the filtering options available on the specific column.
CREATE A CREDIT NOTE
There are 2 options for creating a Credit Note in Qargo:
Create a Standalone Credit Note to create a credit that can offset an account balance.
Create a Credit Note from an existing invoice / order to offset the original invoice amount.
Standalone Credit Note
Navigate to INVOICES > 'Credit Notes' submenu
Click the green 'Create credit note' button.
Enter the customer name and date and click SAVE.
The credit note will be created in a DRAFT format.
Navigate to the Credit Note Lines panel and select 'Add Charge'. The Edit Charge window will open.
Select the 'Charge(*)' field and a drop down will show available charge options to select. These can be renamed if necessary in the 'Name(*)' field.
Add the 'Amount(*)' and make sure there is a 'Tax rate(*)' entered.
Use the description field to type details of the credit.
Click SAVE.
This will now show the charge, and apply the appropriate tax rate. The credit note will remain in a Draft status; and remain in the 'Draft Invoice' tab, until the 'Generate credit note pdf' task is completed.
Credit notes in an Invoiced status will be in the 'Invoiced' tab, and have the pdf file available, which can be sent to customers.
Once sent to the customer, credit notes can be applied to the customer account and marked as 'Refunded'. This may be set as either manual or automatic task, if manual it will show as a task to generate.
*Note: If set as an automatic task, recommend adding the tag for visual confirmation that it has completed.
Credit notes that have been set to Invoiced, can be processed to a posted status.
A credit note can be cancelled via the General Info panel menu. Once the credit note has be cancelled, it will show in the 'Cancelled' tab. The charges that were credited, will be set to 0.
The credit note will show a 'Cancelled' label
Credit Note from an existing invoice
Navigate to INVOICES Menu and 'Invoices' submenu. Select the invoice for the specific order that needs the charges updated.
Select the specific cost line(s) to apply credit and use the 'Remove/credit selected charge(s)'
From the drop down menu, select 'Create Credit Note'.
A new window will open where there are 3 options to create the credit note:
Create Credit Note - This will create a new credit note under a unique number, with the charges selected.
Create Draft Credit Note - This will create a DRAFT credit note, under a unique number, with the charges selected.
Add to existing Credit Note - This will give the option to select from existing draft or standard credit notes that the charges can be added to. It is not possible to add to a credit note that is already posted
Select the appropriate action required for the selected charges.
Once a credit note is created, a tag will display on the original invoice showing the credited amount.
It is possible to move multiple charges to different credit notes if necessary.
Credit notes will show in the appropriate tab (Draft / Invoiced). If the full charge selected is being credited, the credit note may be generated and sent to the customer. This can then be posted and will become available to import to accounts.
These actions can also be executed in BULK via Quick actions or in the credit note list view.
Adjusting charges
In some instances, the credit being issued may not be for the entire charge. The steps to create the credit note are the same, select the charge that will be adjusted and create the draft or standard credit note.
Navigate to the credit notes submenu, and select the appropriate tab for the credit note (draft / invoiced)
Open the credit note by clicking the number and navigate to the 'Credit note lines' panel.
Click the edit icon next to the charge to be adjusted. An 'Edit Charge' window will open where the amount can be updated. There is also a free-form description field to add any other details.
The amount entered in the 'Edit Charge' window is the amount of credit being issued.
Click SAVE and the new amount will update and now show on the credit note.
The credit note details will show in both the invoice and on the order:
ADDITIONAL FUNCTIONS
There are 2 other buttons available on the main list page:
Export: This allows users to export all or a selection of credit note records as an excel file. This is separate to the export specifically for imports to accounts.
Quick Actions: Tasks shown here can be done in bulk on selected records.
Export
Use the 'Export' button to generate a report based on all, or a selection of credit note records. This can be used with the filters in the column headers to generate specific exports.
Quick Actions Tasks
Generate Credit Note:
This will create the pdf file for the credit note. Any subsequent tasks scheduled after this task will be come available. Once the pdf file is available, it can be sent to the customer.
Send Credit Note:
Sending the credit note can be configured as either an automatic or manual task. If selected as sending automatically (email), the billing contact on the customer profile must have an email address.
Mark credit note as refunded / Undo Mark credit note as refunded:
Can be configured to automatically process once the credit note is generated. When configuring the task, a tag can be added which will be applied to the re If set to manual this will so as a task to be completed, once the generate credit note pdf task is completed.
Post credit note / Undo post credit note:
The credit note must have the 'generate credit note pdf' task complete to update the to a Posted status. Once the status is posted, the record will be included in any exports to accounts. Posted invoices cannot be updated.
Click the link below for more information on Posted Invoice restrictions.
Cancel a credit note
If a credit note is created, but is not required this can be set as Cancelled, providing the credit note is not in a posted status.
Open the credit note and navigate to the 'General details' panel.
Use the menu to the right and select 'Cancel credit note'
Re-invoicing credit note charges
Due to the mistakes done on an invoice, you might need to create a credit note from the invoice and re-invoice the order.
This is now possible by simply opening the Credit Note page, selecting the charges on the credit note to be re-invoiced and adding them to a new or existing invoice.
After you have created a new invoice from these selected charges, they will also automatically be re-added to your order in an additional line as in example below:
