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Apply a Credit Note to a Customer’s Invoice

Apply a Credit Note to a Customer’s Invoice

Cleickentry allows you to allocate credit to an awaiting payment invoice so that the amount owed by your customer against the invoice can be reduced. 

How it Works 

  • We can allocate the credit to an awaiting payment invoice. We can apply some or all of the outstanding amount to the invoice. In case you credit the full amount then the credit note status changes to Paid. Otherwise, it remains as Awaiting Payment. 
  • You must have the role of either the adviser, standard, invoice only – approve & pay, or invoice only – sales only, only then you can apply the credit. 
  • In case an invoice has the draft or paid status then you can not apply a credit to it.  
  • Credit is applied to the invoice according to the credit note date, unless the credit note is older than the invoice and then it’s applied on the invoice date. If you report on a cash basis, credit note allocations will be treated in the same way as payments. 
  • If you want to apply for more than one credit then you can do this but the amount you want to credit on the invoice should be up to the amount owing on the invoice.  
  • A credit note from a locked period can be allocated to invoices in periods that aren’t locked.  
  • The allocated credit note will show in the cash-based reports like payment reports. This is because it’s treated as a payment towards the invoice. 

Apply Existing Credit to an Invoice 

You can allocate credit to the invoice at the time of approving it to reduce the amount owed by a customer. 

  1. In the Account menu, select Sales (Accounts >> Sales)
  1. Either select the Draft tab or Awaiting Approval tab. 
  1. Find and open the invoice you want to approve. If you know the contact’s name or the invoice amount then you can find it easily through the search option. 
  1. Click on the Approve button. 
  1. In case the contact has unallocated credit, an allocation window will be prompted to allocate the credit. 
  1. Enter the amounts you want to apply to an invoice in the Amount field. You can apply the whole credit amount or partial amount, but the total credit amount can not be more than the invoice amount. 
  1. Click on the Allocate Credit button. 
  1. The link to the credit note shows above the invoice balance, along with the amount credited. 

Allocate Credit to an Awaiting Payment Invoice 

You can allocate credit to an awaiting payment invoice to reduce the amount owed by a customer. 

  1. In the Account menu, select Sales (Accounts >> Sales)
  1. Either select the All tab or Awaiting Payment tab. 
  1. Find and open the invoice you want to credit the amount. If you know the contact’s name or the invoice amount then you can find it easily through the search option. 
  1. In case the contact has unallocated credit then a credit link appears above the payment section. Click on Credit this invoice link. 
  1. Enter the amounts you want to apply to an invoice in the Amount field. You can apply the whole credit amount or partial amount, but the total credit amount can not be more than the invoice amount. 
  1. Click on the Allocate Credit button. 

Allocate Credit from a Credit Note 

You can allocate credit to an invoice to reduce the amount owed by a customer. 

  1. Find and open the credit note from which you want to credit the invoice. If you know the contact’s name or the amount then you can find it easily through the search option. 
  1. Click on the Credit Note Options drop-down button and select the Allocate Credit option. Available credit is shown at the top and it may be the full amount, or less if some has already been allocated. 
  1. Enter the credit amount in the Amount field for each unpaid invoice you want to credit. You can simply apply the full credit amount or partial amount. 
  1. Click on the Allocate Credit button. 

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