Whether it’s a refund, a returned product, or a correction of a billing error, knowing when and how to issue a credit note is essential. This article provides an overview of when and how to raise a credit note in Ember, how to delete one if required and some information on how to reconcile it to the correct invoice.
Please note: If no money has exchanged hands yet our general advice to clients is to delete the previous invoice and issue a corrected invoice instead. Please refer to our FAQ article for how to delete invoices.
When to Raise a Credit Note
Here are common scenarios when a credit note might be necessary:
Goods Return or Service Cancellation: If a customer returns a product or cancels a service due to damage, dissatisfaction, or any other reason.
Overcharging: If you've invoiced a customer more than what was agreed upon or more than the services/products provided.
Rebates or Discounts: Post-sale discounts or rebates that were not included in the original invoice.
Billing Errors: Mistakes in the original invoice regarding quantity, price, tax, or other details.
How to Raise a Credit Note in Ember
Access the Sales tab: Navigate to the 'Sales' tab on the left hand side of Ember.
Choose the Relevant Invoice: Find and select the invoice you want to issue a credit note for.
Select "Reverse invoice": In the top right of the invoice, there will be 3 dots. Click here and select the "Reverse invoice" option & then select "Create Credit Note"
Issue the Credit Note: Enter all the relevant information and review it before issuing the credit note to make sure everything is correct. To send the credit note, select the three dots in the top right and click "Send via email"
How to Delete a Credit Note in Ember
If you have raised a credit note by mistake or no money has exchanged hands, check out the following steps on how to delete the credit note.
Navigate to the Credit Note: Go to the 'Sales' tab and find the specific credit note you wish to delete.
Select the Credit Note: Click on the credit note to view its details.
Delete the credit note: Select the three dots in the top right of the credit note and then click on "Delete invoice" to remove the credit note.
How to reconcile a credit note to an invoice
Currently, the invoice & credit note won't reconcile automatically. Please reach out to our dedicated team of accountants via intercom who will be happy to assist you with reconciling the invoice & credit note.