A credit note is a credit of funds against a fee or invoice. It does not affect WIP reporting.
If you are writing off bad debts, use a credit note with the appropriate Allocation Code so these amounts can be reported separately.
How to raise a credit note
To raise a credit note against a previously captured invoice, go to the Processing menu at the top of the screen and select Credit Notes from the drop-down list.
This will take you to the Practice Management – Credit Notes screen.
From here select the New Batch button.
The Batch Details are similar to other billing-related screens, such as Invoices and Fees.
Batch details
Processing Office | The Office will default to the office you are allocated to as an employee. If you need to raise the credit note for another office, change the office accordingly. Note: Only invoices/fees raised under the selected processing office will be available to credit against. |
Batch Number | Leave this field as is and the system will automatically allocate it. |
Date | Enter the date the credit note is being applied.This date determines which invoices/fees are available to credit against. If your credit note date is earlier than the original invoice/fee date, those items will not be available to select. |
Approver | Choose either System Assigned (based on your approval settings) or a specific approver , again according to your approval settings. |
Credit note header
Client | Choose your client by typing their name or client code. |
Office | Office will default to the Processing Office selected above. |
Currency | Will default to AUD or NZD |
In the New Credit Note Item , open the Invoice drop-down and select the invoice/fee you wish to credit.
If you select a Fee , the system will display a standard warning advising that you have chosen a credit note. If you need to reinstate WIP, you will need to process a fee reversal.
The Allocation field will default to match the original invoice/fee. If you are writing off a bad debt (rather than applying a discount or other type of credit), change this to the Bad Debt Allocation code so it is correctly reported and integrated to your practice ledger file.
Enter the amount, checking the GST and Gross amounts being credited (GST will match the GST on the original invoice).
Enter a narration if required. This will appear on the credit note if you choose to send it to the client (credit notes can be sent via Debtor Management).
Click the Save button
This will save the entry you have captured. You will now see that the Batch Total equals the Credit Note Total.
To edit the amount, click the pencil icon in the blue area.
As with other processing areas, the Credit Notes module is batch-driven. You can create additional credit notes within the same batch if required. You can do this by click on the New Credit Note button to create a new credit note within the single batch.
Enter the Credit Note Header and Item details.
Tip: You can also use the multi-select option if you would like to capture credit notes against multiple invoices. From this screen, select each invoice you want to credit.
Once complete, click on the Save & Close button.
This will save the batch, and it will be ready to submit for approval, then approve, and finally post, in the same way as other processing modules.
