A free type credit note is used to create a credit note for any amount of money (not attached to a product listing). Create a free type credit note in the same way as a part invoice. Credit notes are listed with invoices but appear with a red background. A credit note does not list the product(s) so you need to type in what you are crediting.
If you wish to create a credit note that is the sum of selected products, see Create an itemised credit note.
1. Open a saved sales order (so you can view the progress toolbar)
2. Click the drop down arrow by Invoice and select Credit Note (Create)
OR
1. Right-click a sales order reference number
2. Select Invoicing & Payments
3. Select Credit Note (Create)
The Create Credit Note screen displays: (The left hand side displays any transaction history).
4. Select from the drop down box for Invoice What.
This displays preset payment amounts depending on how you set up payment stages.
5. The Credit Date will default to today's date and can be edited if required.
6. Input any free text as the content for the credit note. (Products will not be listed)
7. Enter the credit amount either as a nett total or a grand total
With the Calculate VAT box ticked EQ will calculate the total
(Read this article for more information about VAT reverse charge on invoices and credit notes)
8. Click Save Credit Note & Print to show the standard print options
The credit note is now stored on the Invoices tab of the customer screen and the projects screen and can be reprinted by right-clicking on the credit note reference number.
See how to cancel an invoice/credit note.
Deduct Credit Notes Setting
The default behaviour does not deduct credit notes from the outstanding balance. Enable this under System Config > Invoice Layout and tick the box Deduct Credit Notes from outstanding balance.
Tick this so that credit notes are deducted from the order balance. When changing this option you will need to use the button Recalculate All Balances so that all previous credit notes and balances are re-calculated.