Credit Notes (Tax adjustments)

Setup required before use	Who Can Use It?	Where Is It?
Credit number settings Sync Tax adjustments to accounting system Create a credit note document template	Assist. Project Manager (draft only) Project manager Director Administrator System Administrator	Projects > Invoices tab

Credits will be transferred to your accounting system using MYOB or QuickBooks (Reckon Accounts Premier)Connect or Batch. They would then be applied to the outstanding invoice, to alter the balance outstanding in MYOB or QuickBooks (Reckon Accounts Premier). By default the Credits will be transferred to your accounting system based on the original account name/number - however you can open the Credit and change the account it's been posted to. This would be the case particularly for bad debts (write off).   

 

	Credit Note	Cancel Invoice	Write Off
Transactions return to WIP	#
Fee is available to re-invoice	#
Sync to accounting system using Connect or Export
Lose invoice number
Loss recorded against the project	*
Pre-Bill placeholder transactions are deleted NEW 4.8.8

# Only when option Adjust Invoice Lines is selected. Discount the Invoice does not return transactions to WIP or make the fee available for invoicing. 

* Only when Discount the Invoice is selected. Because we assume you to not be re-invoicing the fee. 

The date of the cancellation is very important, as the cancelled invoice will be transferred to your accounting system. If your accounting system has been rolled over, or transactions prior to a set date cannot be recorded, then the credit may not transfer. 

Part of the invoice or all of the invoice can be credited. Allows the amount to be re-invoiced on a new invoice number. Depending on the option selected may or may not return transactions to WIP.  

Credits the full amount of the invoice allowing it to be re-invoiced. All transactions are returned to WIP available for re-invoicing. 

The invoice value cannot be re-invoiced. Transactions are not returned to WIP. A loss is shown on the project. This is most commonly known as a bad debt write off.   

When a credit is created it will be allocated a number automatically, depending on the option selected in Office settings. It will either be the next number in sequence, a credit number sequence or the original invoice number. To avoid confusion and to allow separate credit documents, we suggest using the credit number sequence.  You can set the credit number after the credit is created also.  

1. Highlight an invoice within the project.
2. Select the credit button.
3. Select one of 2 options - Discount the Invoice or Adjust Invoice Lines.
4. Nominate the value to be credited.
5. Select the credit date.
6. Finish.

1. You can either set a new percentage (fixed or percent fee types), set a credit value ex tax or credit value including tax against the relevant sub project.
2. There is also an option Specify Total button. This will automatically pro-rata the value against each sub project within the invoice. 

1. Double click a sub project.
2. For Fixed and Percent fee types set a new invoice value or new % complete.  
3. Also uncheck a transaction on the lower half of the screen to return it to WIP. Close. 
4. For Hourly or Capped rates fee types. Uncheck the transaction to return it to WIP. The invoice will be reduced by the charge value of the transaction.  

Should an invoice be fully credited using Discount the Invoice option you can return the transactions attached to the invoice to WIP.  

1. Double click the invoice.
2. Select Action.
3. Select Return attached transactions to WIP.
4. A message will prompt you are going to return all transactions to WIP, select Yes.
5. Close the Invoice.
6. The Transactions will be available to re-invoice.

Should an invoice be credited by mistake, it can be reversed.  

1. Go to the Invoices tab within a project.
2. Highlight the invoice number that was credited and select the Credit summary button .
3. Double click the Credit.
4. Select Action.
5. Select Undo Credit.
6. Enter the undo credit note date. This is suggested to be the same as the credit note date, to make it easier for you to balance your financial reports. NEW 4.9.0
7. Run the sync to MYOB.

If you return to the credit summary window you will notice there are now 2 credit transactions - a debit and a credit. The credit reversal can be found within MYOB under Open Invoices - it will not appear under returns and credits.  

1. You will need to Delete the Credit Sales Journal from MYOB. The invoice in MYOB will should then reflect the original amount invoiced, less any payments entered to date. 

1. If you've not yet applied the credit to the original invoice in MYOB it will be available under the Returns and Credits.
2. Highlight and select Apply to Sale.
3. Apply the credit (-0.00-negative) to the credit reversal (0.00-positive) that appears in the list with the same amount, which is the result of you Undoing the credit.  

1. Highlight an invoice within the project.
2. Select the write off button.
3. Select Next.
4. Select the credit date.
5. Finish.

Change the screen filter to show All invoices instead of Active only. The write off can be undone by selecting the restore write off button . 

The Est. P/L on the Profitability tab will reflect the write off invoice amount.

	Invoice Amount	Invoice Write Off	Cost	Profit/Loss
Project 20080019	6,000.00	-	4,000.00	2,000.00

[Invoice - Cost = P/L]

	Invoice Amount	Invoice Write Off	Cost	Profit/Loss
Project 20080019	6,000.00	1,000.00	4,000.00	1,000.00

[Invoice - Invoice write off - Cost = P/L]

Cancelling the invoice effectively reverts the whole project back to what it was before you created the final invoice. So all transactions attached to the invoice are returned to WIP, making them available to create a new invoice. However if the sub project has already been set to the status of Complete, the transactions will automatically be changed to written off.    

Re-invoicing the fee and transactions

1. Set the Project and Sub Project status to Active.
2. Cancel the Invoice.
3. Transactions are returned to WIP and not written off.
4. Create a new invoice, a new invoice number will be allocated.

Not re-invoicing the fee and transactions

1. Cancel the Invoice.
2. Transactions are written off and cannot be reinvoiced.

Cancel the invoice

1. Highlight an invoice within the project.
2. Select the cancel button.
3. Select the cancel date.
4. Finish.

1. Select an invoice.
2. Select the credit summary button.
3. Highlight the credit in the list.
4. Select Create Word Invoice .

Want to learn more? Printing a credit note topic and Credit Notes template topic

Credits will transfer to your accounting system, enabling you to apply the Credit to the original invoice.

Example

Invoice 00006108 has been cancelled. Though you'd like to differentiate the cancelled invoice from the original invoice. A suggestion of putting a CR in the prefix will help do this - so the invoice that appear in and the accounting system is CR006108. 

1. Select the screen filter Active Invoices and select All Invoices from the list.
2. Double click the invoice number that has been cancelled.
3. Select Action.
4. Select Change invoice number.
5. Provide a 3 digit prefix.
6. Provide a new up to 5 digit counter.
7. Save.