The Invoices module now has a new document type – the credit note. It records a reduction in the amount a client has to pay as a separate document with its own number and status. The issued invoice itself stays unchanged.
For example, you issued a client an invoice for equipment maintenance and later agreed on a discount because the work was delayed. Previously, you would have had to edit the invoice itself: the original amount would disappear from the document, and the reason for the adjustment wouldn't be visible anywhere. Now the invoice stays exactly as it was issued, and you apply the discount with a credit note – the invoice shows the original amount, the adjustment and the balance due.
Along with credit notes, we've updated how payments work: invoices can be paid in instalments, payments for orders are automatically taken into account, and all payments and adjustments are gathered in one place.
Two ways to create a credit note
The invoices page now has a separate Credit notes tab. It supports the same filters, columns and sorting as the invoice list, and for each credit note you can see the invoice it belongs to, if there is one.
How you create a credit note determines what it affects.
From an invoice – by selecting Credit note in the invoice's Actions menu. The credit note is linked to it right away, and the legal entity, client, payer and items are transferred automatically. All you need to do is specify the items and the adjustment amount. This option works well when you need to adjust a specific invoice: the client returned some of the goods, you gave a discount after issuing the invoice or you found a mistake in the quantity. This action isn't available for paid and canceled invoices.
Without an invoice – by clicking + Credit note on the Credit notes tab. You select the legal entity, client, payer and items yourself. This is useful when the credit note isn't related to a specific invoice – for example, if it's compensation to a client for an inconvenience or a bonus for a regular partner.
Please note: in credit note items, the Price field means the adjustment amount per unit, not the new price of the product or service. If the credit note is created from an invoice, this field is first filled in with the price from the invoice – keep it to reduce the amount due by the full value of the item, or enter a smaller amount.
How a credit note affects the invoice and balance
A new credit note is created as a draft: you can edit or delete it, and it doesn't change any amounts yet. It affects the invoice or balance only after you change its status to Issued. After that, the credit note is locked and can no longer be edited, and its amount is applied depending on how it was created:
a credit note created from an invoice reduces the balance due on that invoice. The invoice items and total stay the same – the adjustment appears in the invoice as a separate line with the credit note number and a negative amount;
a credit note created without an invoice is added to the payer's balance – or the client's, if the payer and the client are the same.
If you cancel an issued credit note, its amount will no longer be counted in the invoice or on the balance.
The total of all credit notes for one invoice can't exceed the invoice amount. A credit note doesn't refund money to the client: this requires a separate financial transaction.
Credit note numbers are generated using their own template with a separate counter. The template is set up the same way as for invoices: shared across the whole company or separate for each legal entity.
Paying invoices in instalments
Invoices no longer have to be paid in a single amount. To record a partial payment, select + Payment in the invoice's Actions menu and enter the amount. Any payment method can be used, even if a different one is specified in the invoice. For example, a client paid half the amount in cash when the equipment was handed over and paid the rest by bank transfer a week later – both payments will be visible in the invoice.
Below the invoice total, there's now a Balance due block: it shows all payments and credit notes with a minus sign, so you can see right away how much has already been paid and how much is left.
Payments for orders are taken into account in the invoice. If the client has already made a prepayment or full payment for an order included in the invoice, it will automatically appear in the Balance due block – and the client will only need to pay the difference.
If you change the invoice status to one from the Paid group but the client hasn't paid the full amount yet, a dialog for paying the remaining amount will open. The remaining amount can be paid as usual or from the client's balance. If more was received for the invoice than required, the system will offer to refund the overpayment to the client or add it to their balance – the same way it works for orders.
Learn more about creating credit notes and how they affect invoices and balances in the guide to working with credit notes.
Have questions or suggestions about working with invoices? We're always available in the support chat.