Building upon the previous article, this section provides a comprehensive guide on how to add and apply a credit note within the system. Depending on how the credit note was created—whether as a standalone credit note or directly linked to an existing invoice—additional actions may be required to ensure the credit is properly applied to the relevant invoice. These steps are critical in ensuring that financial records are updated accurately and in a timely manner.
Pathways for Issuing Credit Notes:
- Standalone Credit Note: When a credit note is created independently, it is not automatically linked to a specific invoice. Therefore, additional actions must be taken to apply the credit note to an outstanding or issued invoice. This flexibility allows organisations to use the credit note for future invoices or as a discount for services or products, but manual application ensures it is accurately reflected in the records.
- Linked to a Specific Invoice: When a credit note is issued directly in response to an existing invoice, the system can automatically cancel out the amount owed on that invoice. This pathway simplifies the process, as the credit note is already applied, ensuring minimal manual intervention is required.
Required Knowledge: How to Add a Credit Note, How to Search an Invoice
Required LRM Access: Owner
Apply Standalone Credit Note from an issued invoice
1
Apply Credit Note
- Navigate to LRM > Finance
- Invoices sidebar option will be oped by default
- Locate the specific invoice to apply credit by using the Filter/Search function
- Click on Invoice Number
- Invoice Details screen opens
- On the Action Menu, click Apply Credit Note
2
Apply Credit Note screen
A list of credit notes with unused credit will display in the table.
- To review the credit note details, click on the Credit Note Number. The Credit Note Details page will open in a separate window.
- If there is a large number of credit notes with unused credit, use the Search bar to narrow down the options by searching part of the Credit Note Number or Reference.
- Once you locate the specific credit note, click Apply. A confirmation screen will pop up for reviewing the details.
- Click No to return to the Apply Credit Note drawer.
- Click Yes to proceed.
- By clicking Yes, you will be redirected to the Invoice Details screen. The Amount Due will be updated, the credit note history will be listed above, and the timeline will reflect the updates.
When Invoice Amount Owing = 0, the following updates will occur:
- Invoice Status: Changes from Issued to Paid.
- Timeline: Displays the credit amount received along with the Credit Note Number. A new event will indicate that the invoice is Paid.
- Amount Due: Updated to $0.00. Above the Amount Due, a payment history will show the less credit, including the Credit Note Number, Credit Note Date, and Credit Amount.
When Credit Note Unused Credit = 0, the following updates will occur:
- Credit Note Status: Changes from Issued to Fully Applied.
- Timeline: Shows the credit amount applied and the associated Invoice Number. A new event will indicate that the credit note is Fully Applied.
- Remaining Credit: Updated to $0.00. Above the Remaining Credit, a credit note application history will show the credit applied to the invoice, including the Invoice Number, Invoice Date, and the Credit Amount applied.
