Credit and debit notes

A credit note reduces what is owed on an issued invoice, and a debit note increases it, so you correct an invoice without changing the invoice itself.

Who it is for: billing administrators who handle returns, discounts, annulments, interest or extra charges after an invoice is issued.

Availability: in Studio, open your workspace and go to Modules > Accounting > Billing. Notes are listed under Credit Notes and Debit Notes. Issuing a note needs permission to create invoices.

Rules for every note

  • A note adjusts an issued standard invoice. A draft invoice is corrected by editing it instead.
  • A note never adjusts another note.
  • A closed invoice cannot take a note.
  • The note is in the currency of the invoice it adjusts.
  • Every note states a reason and a description of 20 to 5000 characters.
  • The note is issued as soon as you create it. When your workspace has a number range for that kind of note, the note takes the next number in its own series, separate from your invoice numbers.

Issue a credit note

  1. Open the issued invoice from Invoices.
  2. In the actions menu, select Credit note. The Create credit note page opens with the invoice selected.
  3. Check the invoice's Invoice number, Currency, Invoice total and Creditable amount.
  4. Choose a Reason: Return, Annulment, Discount, Price adjustment or Other.
  5. Enter the Amount. It must be greater than zero and cannot exceed the creditable amount.
  6. Enter the Reason description.
  7. Select Issue credit note. The page confirms the note and shows its number when it has one.

An Annulment always credits the full creditable amount, so the amount is filled in for you and cannot be changed.

What "creditable amount" means

The creditable amount is the most that can still be credited on the invoice: the invoice total, plus its issued debit notes, minus its issued credit notes. A credit note never exceeds it. When nothing remains to be credited, the page tells you so and you cannot issue another credit note.

Issue a debit note

  1. Open the issued invoice from Invoices.
  2. In the actions menu, select Debit note. The Create debit note page opens with the invoice selected.
  3. Choose a Reason: Interest, Charges, Value change or Other.
  4. Enter the Amount. It must be greater than zero.
  5. Enter the Reason description.
  6. Select Issue debit note.

A debit note has no upper limit. It raises the invoice's creditable amount by the amount of the note.

What a note changes

  • What the customer owes. A credit note lowers the amount outstanding on the invoice and a debit note raises it.
  • Your books. When Post journal entries automatically is turned on in your Accounting settings, the platform posts the note's journal entry once the note is issued. A credit note's entry posts only after the original invoice's own entry is in your books, so a note against an invoice that was issued while the setting was off is not posted automatically. When the setting is off, nothing posts automatically. See Accounting.
  • The original invoice. The invoice itself does not change. The note keeps the reason and a reference to the invoice it adjusts.

Numbering notes

Credit notes and debit notes each draw from their own number series. Set up a range for each kind of note through the API, choosing the credit note or debit note document type. Without a range for that kind of note, the note is issued without a number. See Invoice-number ranges.

For developers

  • GET /api/v2/InvoicingService/Invoices/{invoiceId}/CreditableAmount returns what can still be credited, in the invoice's currency.
  • POST /api/v2/InvoicingService/Invoices/{invoiceId}/CreditNotes issues a credit note.
  • POST /api/v2/InvoicingService/Invoices/{invoiceId}/DebitNotes issues a debit note.

Each request carries the amount, the reason and the reason description. A request that breaks a rule above is refused and nothing is issued.