Invoicing and receipts
Credit notes
You can issue a credit note to a customer if you owe them money or if you need to cancel a previously issued invoice. After you issue a credit note, you can either apply it to an existing invoice or issue a refund to a customer.
When do you issue a credit note?
Common cases when you would issue a credit note to your customer:
- A customer has returned a purchase
- A customer has made an advance payment
- You want to give credit to your customer (for example, as part of a loyalty program)
Issuing a credit note to your customer
To issue a credit note, click on Credit notes
in the left side menu, then click on Add credit note
. Complete the form:
- Wafeq automatically generates a
Credit Note Number
in a sequence. - Choose the
Currency
in which you'd like to issue the credit note. - (Optional) Indicate the
Purchase Order
details of your customer's request. - Choose the
Contact
corresponding to the customer you'd like to credit or create the contact directly in the form. - (Optional) Assign the credit note to its specific
Project
. This allows you to track the profitability of your various projects. - Set the Date on which the credit note is created.
- In the credit note line items:
- (Optional) Choose the
Item
for which you are issuing the credit note. - Write a short
Description
indicating the details of the line item. - Choose the
Account
where you'd want the credit note to be booked. For example, for a returned item or service, you will typically want to choose the same account you chose when you issued the invoice for that item or service. This is usually anIncome
type account. - Indicate the
Quantity
of the line item and thePrice
- (Optional) Add a
Tax Rate
if applicable
- (Optional) Choose the
- Click
Save and Send
to send the credit note to your customer, or justSave
to save it asDraft
.
Applying a credit note to an existing invoice
If a customer has outstanding credit notes, you will be able to pay off outstanding invoice with the credit notes.
To pay off an invoice with a credit note:
- Go to the invoice. A button labeled
Apply to credit note
will show up in thePayments
section. The button only shows up if the customer has outstanding credit notes. - Click
Apply credit note
. You will then see a list of all unpaid credit notes for the customer. - Enter the amount you wish to allocate from each outstanding credit note to the invoice, then click
Save
.
Issuing a refund for a credit note
To issue a refund for a credit note:
- Go to the credit note.
- Click `Record refund.
- Enter the
Date
of the refund . - Enter the
Amount
you've refunded. - Enter the
Account
you've paid the refund from. - Click
Save
.