How do I record a customer credit / issue a credit note?

Creating a Credit Note

Creating a credit note is a similar process to creating an invoice. Within the invoicing module, select 'Create Credit Note' and then follow the process as you would with an invoice.

Credit notes are created automatically with a negative total so you should enter the credit note as a positive value.

Payment of Credit Note

Although it is not common to do this, you may wish to make a payment to a customer. For example, if you have taken a refundable deposit for an event.

Once the credit note is created within ExpensePlus, make the payment from your bank account to the customer you are repaying - there isn't a process for this within ExpensePlus. Then when the outgoing transaction appears on your uploaded bank transactions, on the match transactions screen:

• Select the transaction in the left-hand table
• Click the '+' button that appears
• Select 'Payment of Credit Note' in the dropdown
• Select the relevant credit note and click 'confirm'

Allocating a credit note

More commonly, credit notes are allocated to an invoice (to reduce the amount the customer has to pay).

This can be done within the invoicing module within ExpensePlus in two (equally valid) ways:

Option 1: Allocate Credit Note

Select the 'allocate' + button to the right of the credit note:

Then select the invoice(s) you would like to allocate this against:

Option 2: Apply Credit Note

Select the 'update' button to the right of the invoice you wish to apply a credit note to:

Then select 'apply credit note':

And select the credit note you would like to apply:

What to do if you are not able to allocate/apply a credit note to an invoice

If you create accounts on an accruals basis, then you will always be able to allocate or apply a credit note to an invoice (as long as the date for both isn't in the future).

If your organisation has an annual income of below £250,000 and you create accounts on a receipts and payments basis:

• When applying a credit note (where the total matches the invoice total) you can just apply these - see instructions above.
• When applying a partial credit note (where the credit note doesn't match the invoice total), you will need to split the income allocation of the invoice - see the example below.

Example: Apply a £10 credit note to a £100 invoice (receipts and payments accounting basis only)

(1) Click on the invoice and split the income allocation:

(2) you will then be able to apply the credit note to the invoice in the usual way, and even though there is a 'difference' you will be able to click 'confirm'.

And then distribute the credit note to the £10 invoice income allocation you created:

Similarly, you can also do this by allocating the credit note:

To help you better understand the invoicing module as a whole, please visit the module overview page here.