A Credit Note is a formal document used to reduce or cancel the amount a customer owes on a finalized invoice. PayDocker allows you to track, and manage credit notes issued by your suppliers to ensure your financial records remain accurate.
As a buyer, you will not be able to issue any credit notes for the invoices you have received. Instead, you will be able to view and track the credit notes received.
How to access
1. Head to Purchases > Bills Select the invoice you wish to look into.
2. Scroll down to the Credit Note section. This will be the collated list of credit notes related to the invoices. At one glance, you will be able to see key information like Reason for issue, amount and status of credit notes.
Each credit note receives a unique tracking number and will be visible under the Invoices and Events sub-sections. The credit note will also have automatically generated fields, based on your invoice detail. These generated fields are not editable.
3. The generated credit note will reflect in the invoice summary, Credit Notes and Events subsections in both your invoice and the related invoice object. This will give you an account of any adjustments after invoice issuance.
Invoice summary
Credit Notes subsection
Events subsection
4. You can manage your credit notes directly on this view. Click the ' ... ' to view the credit notes, void, and download the credit note in PDF.
Example of PDF
Once your credit note has been generated, we will notify the team members that have opted in to receive email notifications.
Subsequent credit notes received
Subsequent credit notes are calculated against the latest adjusted balance, not the original total.
Example:
Original Invoice: $100
Credit Note 1 (-$10): New Balance $90
When issuing Credit Note 2, the invoice balance (See point A) will reflect $90.
Additional Credit Notes will also be shown in this format:
Impact on payment & Refunds
Upon receiving the credit note, there could be 2 possible scenarios:
- If Payment is Outstanding (Overdue, Outstanding, Frozen): The invoice total is automatically updated to the new, lower balance.
- If Payment is Completed: The balance will show a negative value. You will then receive a Refund.
Receiving your refunds
Once the Object has been collected, the balance due will be at 0.00. Any credit notes issued after will result in a refund issued.
If you have enabled two-step verification, you may need to provide further authentication to successfully process your refund.
Once processed, a Transaction ID is generated. Refunds are tracked in three areas: Invoice, Object, and Balance.
Refunds listed on Invoice - Refunds & Events section
Refunds listed on Object - Events section
Refunds listed on Balance
Email notifications for refunds
Email notifications will be sent to any account that have opted in for refund notifications on their account.
Impact on payment for voided credit notes
- Object has already been collected
- Invoice status will be updated from Paid to Partially Paid. A new object would have to be created for the outstanding amount due. **
** In the event that this new object is rejected, invoice status will change from Partially Paid to Partially Uncollectible. No new credit note can be issued if there are any errors on this step. - Once the new object has been collected by you, invoice status will revert back to Paid.
- Invoice status will be updated from Paid to Partially Paid. A new object would have to be created for the outstanding amount due. **
- Object has not been collected
- No changes to Invoice status
- No new object will need to be created
- Object value will be based on new balance and this adjustment will be accounted for in the Events section of the object.