Credit notes and prepayments

A credit note reduces what a customer owes you. A prepayment is money a customer gave you before an invoice exists. Both are built in the engine.

Not available on screen yet

There are no credit note screens in the app today. The engine works and is tested, but you cannot yet reach it with a button.

Not handled yet

• Foreign-currency credit notes are not yet handled. Use credit notes in your company's own currency only.
• Credits that are waiting on an account do not show in the receivables aging report yet. They do show on the customer's statement.
• Supplier credit notes, and money you hold with a supplier, are not built. Credits are customer-side only.

How it works

• A credit note is posted to the books. It reduces income and tax, and reduces what the customer owes.
• A prepayment is posted as money in the bank, held as a credit for that customer.
• You can apply a credit to invoices of the same customer. An applied credit counts as money received on the invoice. Aging, statements and days-to-pay agree.
• Or you can refund the credit. The refund records money paid out of the bank.
• Recording an overpayment pays the chosen invoices and keeps the extra as a prepayment in one step.
• You cannot void an invoice that has a credit applied, in the same way you cannot void one that has a payment. Undo the credit first.
• The books check counts unapplied credits, so the receivable account still matches the customers.

Good to know

• A credit note can be made as a PDF.
• Credit notes need the right to write sales. See users-and-roles.
• Tested on new files. Not tested on a real older company file.