Credit Notes help you manage financial adjustments by creating credit for a debtor that can be allocated against one or more eligible invoices.
They give you flexibility to reduce amounts owed, distribute credit across invoices, correct an allocation when circumstances change, and manage any remaining credit.
How Credit Notes work
A Credit Note creates an amount of credit for a debtor.
Once issued, that credit can be allocated to one or more Issued invoices belonging to the same debtor. You can choose how much to allocate to each invoice and do not need to use the full Credit Note at once.
Any remaining amount stays unutilised and can be allocated later or used in another eligible finance workflow.
Add, Allocate, and Manage Credit Notes
Credit Note amounts can reflect the adjustment you need to make.
When adding Credit Items, you can adjust the Unit Price rather than being limited to the default price of the Finance Item. The Credit Item remains linked to the Finance Item for tracking and reporting.
This is useful when you need to create a partial credit, apply a discount or make another adjustment without creating a new Finance Item or changing its default pricing.
Allocate credit across invoices
An Issued Credit Note can be allocated to one or more Issued invoices belonging to the same debtor.
You can:
- Allocate credit to one or multiple invoices at the same time
- Choose how much to allocate to each invoice
- Partially allocate a Credit Note
- Leave the remaining credit available to use later
The amount allocated to an invoice cannot exceed its outstanding balance, and the total amount allocated cannot exceed the Credit Note’s unutilised amount.
Understand the Credit Note balance
As you allocate and unallocate credit, Wisenet keeps track of the amount that remains available.
From the Credit Note details, you can see:
- Which invoices the Credit Note has been allocated to
- The amount allocated to each invoice
- The allocation date
- The current unutilised amount
- The current Credit Note status
You can also view applied credit from the Invoice details to understand how the current invoice balance was calculated.
How to Search, View and Manage Credit Notes.
Export credit note records using the Data Export feature.
Credit Notes and Refunds
Credit Notes and refunds serve different purposes.
A Credit Note creates credit that can be used to reduce the amount a debtor owes.
A refund records money being returned to the debtor.
If credit has already been allocated to an invoice, the allocation can be reversed where required so the amount becomes unutilised again. That credit can then be reallocated or, where applicable, refunded.
Refunds can also be processed directly against eligible payments, so a Credit Note is not required for every refund scenario.
Learn more How to View and Manage Refund Details