Raising a credit note

There are 2 ways to raise a credit note on a matter:

1. Against an existing Client Invoice
2. Independently of an invoice, referred to as a Standalone Credit Note

Crediting an existing Invoice

To record a credit against an existing client invoice:

1. Select the ‘Actions’ menu next to the associated invoice
2. Payments and Refunds
3. Navigate to the Credit Note tab
4. Record the amount of the credit against the associated line item
5. Choose the account it should be allocated against

Tip

The default account will be the one the receivable was raised against.

1. Confirm the date of the transaction
2. Approve Credit

The credit note will be applied against the client invoice and the ledgers updated accordingly.

Voiding a Credit Note on an existing Invoice

1. Select the ‘Actions’ menu next to the associated invoice
2. Payments & Refunds
3. Select the ‘Actions’ menu next to the associated credit note
4. Delete

Creating a Standalone Credit Note

Standalone credit notes can be used to refund money to the client account without being associated to an existing invoice.

1. Within the Client Invoices tab, select ’+ Credit Note’
2. Choose the Stakeholder you would like the refund to be applied against
3. Provide the details of the credit:
4. The name of the transaction
5. The account it should be recorded against
6. The amount
7. The tax rate
8. Add any additional line items, as required
9. Provide a reference or leave blank to auto generate
10. Save

The credit will be:

• Debited to the office ledger, with a corresponding ‘Spend Money’ transaction on the Office account in Xero
• Credited to the client ledger, with a corresponding ‘Receive Money’ transaction on the Client account in Xero

Caution

The above ledger transactions will only be applicable if you are using our full Ledgers and Invoicing accounting package. The relevant transactions will always sync to Xero.

Voiding a Standalone Credit Note

1. Select the ‘Actions’ menu next to the Credit Note
2. Void
3. Confirm the amount displayed