Credit notes are used to reduce the amounts previously invoiced to customers.

For example, if you invoice a client for products and some of them are damaged on delivery, you can create a credit note to reduce the invoice value, meaning the customer owes you less money, or nothing at all (depending on the amount of the credit note).

How to issue a credit note to your customers
First you will need to go to Customers > Customer Credit Notes and click New Credit Note.

You can also create a new customer credit note by selecting New Customer Credit Notes from the Quick Links menu.

You can then select the customer the credit note is being issued to, and then click Select Invoices to see a list of invoices relating to that customer.

Select the invoice (or invoices) that you wish to credit from the list of creditable invoices.

Next, simply add the amount to reduce the invoice by. You can credit each line item on an invoice individually, for instance if you want to credit one line in full, in part, or not at all.

Create new Customer Credit Note from the Customer Invoices screen

It's also possible to create a new customer credit note from your Customer Invoices screen. Select 'Customer Invoices' from the Customers menu.

Then open the menu next to the invoice which you want to credit, and select ‘Create a Credit Note’ from the pop-up menu.

Pandle will load a new credit note with all of the customer details already populated and that invoice selected, so all you need to do is select the correct line items that you want to credit.

In Pandle a credit note must be assigned to an invoice for the following reasons:

  • It reduces the scope for error. If payments on account were allowed, user error could mean negative customer accounts were possible, or you could lose track of which credit notes apply to which invoices.

  • VAT complications. If a credit note is not assigned to an invoice, Pandle does not know how to treat the VAT, i.e. it could relate to a sale that was standard rate, reduced rate, exempt, or outside the scope of VAT.

  • It forces workflow to be in a methodical order, i.e. credit notes cannot be created before the invoices.

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