This guide describes step-by-step how to fully credit a charge invoice and how to correctly allocate credit notes in the system. The guide also covers partial crediting, manual creation of credit notes, euro-denominated credits, and the releasing of credit note allocations.

Contents

Create a credit note for total amount of original invoice

If you wish to create a credit note for the selected invoice, there are three ways to do this: 

You can open the view or perform the function by selecting Sales > Sales invoices > Sales invoice list and opening the desired invoice.

Method 1: Create a credit note from the charge invoice

  1. Open the charge invoice to be credited.
  2. Open the Sales invoice functions menu in the upper right corner of the invoice.
  3. Select Create a credit note from the menu.
  4. Print the credit note by selecting Send invoice so that the invoice can be further handled in accounts receivable.
  5. Send the credit note to the customer if the charge invoice has been sent to the customer and the customer’s accounts receivable requires the credit note.
  6. If there is no need to send the invoice to the customer, print the invoice in the sending view by selecting local printing (PDF).

Netvisor creates a mirror copy of the charge invoice, i.e. the quantities of the invoice items receive a negative value.

Method 2: Create a credit note from the Accounts receivable or Sales invoice list view

You can open the view or perform the function by selecting Sales > Accounts receivable > Open sales invoices or Sales > Sales invoices > Sales invoice list.

  1. Select the desired charge invoice in the Accounts receivable (Open sales invoices) view or in the Sales invoice list view.
  2. Open the invoice-specific function button on the right-hand side of the page or select the Invoice functions button.
  3. Select Create a credit note.
  4. In the window that opens, confirm by selecting Create a credit note again.
  5. If necessary, cancel the action by selecting Cancel.
  6. Further handle the credit note in the Sales invoice list view so that a voucher is generated for the invoice.

After creating the credit note, the Sales invoice list view opens and the created credit note is visible in the list.

Method 3: Create and allocate a credit note with one function

  1. Open the charge invoice to be credited.
  2. Open the Sales invoice functions menu.
  3. Select Create and allocate credit note.

This function automatically allocates the credit note to the charge invoice from which the credit note is created and automatically creates a voucher for the credit note. 

Create a credit note for partial amount of original invoice

You can open the view or perform the function by selecting Sales > Sales invoices > Sales invoice list and opening the desired invoice.

Method 1: Edit a full credit note into a partial credit

  1. First create a full credit note as described in the section “Create a credit note for total amount of original invoice”.
  2. Open the row section of the credit note for editing.
  3. Delete from the row section those rows that you do not want to credit.
  4. Leave in the row section only those rows that you want to credit.
  5. Finish editing the invoice and save the invoice.
  6. Print and send the credit note either from the invoice or via the Accounts receivable (Open sales invoices) view or the Sales invoice list as described above.

Method 2: Credit selected rows

  1. Open the charge invoice.
  2. Select the desired invoice rows by ticking the box in front of the invoice row to make it active.
  3. Above the invoice rows, select Do for selected > Credit selected lines.

Manual credit note

You can open the view or perform the function by selecting Sales > Sales invoices > New invoice.

It is also possible to create a manual credit note if you do not want to use the Create a credit note function found on the charge invoice.

  1. Start the New invoice function as when creating a normal sales invoice.
  2. Proceed to the step where you add items to the invoice.
  3. Pick the item normally from the product register.
  4. Enter a negative number in the quantity column.
  5. Accept the product or service price from the product if this is a normal product or service credit.
  6. If necessary, change the price to the desired amount, taking into account the net and gross columns (the unit price is entered only in one of these).
  7. Finish editing the row section when it is in the desired form and save the invoice.
  8. Print and send the credit note as described above.

Create a euro-denominated credit

To create a euro-denominated credit, a suitable item is needed in the product register.

  • The item can be created by yourself, for example with the name “Credit”.
  • Set the price of the item to zero euros.
  1. Create the credit note as in the previous section “Manual credit note”.
  2. Select on the invoice the item created for the euro-denominated credit.
  3. Determine the unit price manually on each invoice.
  4. Always enter a negative number as the quantity.
  5. Always enter the unit price as a positive value.
  6. Print and send the credit note as described above.

Allocate credit note to the charge invoice

It is possible to allocate a credit note to a charge invoice only after printing or sending, i.e. a voucher must have been created for the invoice in bookkeeping. The invoices to be allocated must not have the paid status.

You can open the view or perform the function by selecting Sales > Sales invoices > Sales invoice list.

  1. If necessary, check the status of the invoice in the Sales invoice list from the menu on the right-hand side of the invoice.
  2. Select Update status from the menu.
  3. Select, for example, Open or Overdue as the status.

You can open the view or perform the function by selecting Sales > Accounts receivable > Open sales invoices or Sales > Sales invoices > Sales invoice list.

  1. Do not open the invoice to be allocated, but search for the desired credit note in the Open sales invoices view or in the Sales invoice list.
  2. From the invoice-specific function button on the right-hand side of the page, select Allocate.
  3. Wait for the credit note allocation function to start.
  4. On the page that opens, select from the list the customer’s open charge invoice you want.
  5. Click the Allocate here link.

The system allocates the invoices with each other and if it was a full credit, both invoices are marked as paid on the allocation date. 

If the credit note is larger than the charge invoice, the charge invoice is marked as paid and the credit note remains open for the remaining amount. It is possible to continue allocating the credit note until it has been fully used. 

If the credit note is smaller than the charge invoice, the credit note is fully paid and the charge invoice remains open for the remaining amount. It is possible to allocate several smaller credit notes to the same charge invoice. 

Credit note is paid using bank transfer

You can open the view or perform the function by selecting Sales > Sales invoices > Sales invoice list and opening the credit note.

  1. Open the credit note.
  2. Select Sales invoice functions > Create bank transfer.
  3. Check that the amount, due date, reference number and recipient details have been automatically transferred from the invoice to the bank transfer.
  4. Add the recipient’s bank account number to the bank transfer.
  5. Add the payer’s bank account number to the bank transfer.

When the credit note has been paid to the customer in cash via bank transfer and the refund is visible on the bank statement, start the allocation of the credit note as described above.

  1. Open the allocation view for the credit note as in the section “Allocate credit note to the charge invoice”.
  2. In the lower left corner of the allocation view, select the link If the credit has been paid to the customer, add payment.
  3. Click the link and record a new payment.
  4. Enter in the Payment date field the date on which the payment appears on the bank statement.
  5. In the To account field, select the bank account from which the payment was made.
  6. In the Processing method field, select the value Normal.
  7. If desired, the resulting MS voucher can be linked to the bank statement according to this guide.

Credit note in accounts receivable, paid with purchase invoice to the customer

A credit note in accounts receivable is paid to the customer with a purchase invoice as follows.

  1. Make a manual payment for the credit note to the desired interim account in bookkeeping.
  2. Post the purchase invoice to the same interim account (OL voucher).
  3. Set the purchase invoice to be paid normally.

Releasing credit note allocation

The allocation of the credit note is released as follows: 

First find the original invoice A and credit note B involved in the credit from the Sales invoice list. 

  1. Open either invoice by clicking its number.
  2. On the invoice, in the Payments section under Transactions, check the Date column. This date is the allocation date and is used to search the payment list.
  3. You can open the view or perform the function by selecting Sales > Payments.
  4. In the Payments view, perform a search by filtering payments with the invoice payment date, the customer’s name and selecting all from the Processing status section.
  5. Select Search.
  6. Check that the result set shows the payments of the customer in question according to the filter.
  7. Delete both payments by opening the payment’s Edit view (pencil and notebook button) or by clicking the customer’s name.
  8. Make sure that you have accountant rights for the company in question, as deleting a payment requires these rights.
  9. NOTE! Do not delete the vouchers for these payments, as they are the invoices’ ML vouchers. No separate voucher is created in Netvisor for the allocation of the credit in bookkeeping.
  10. Continue from the Payments view once the payments have been deleted.
  11. Find the original invoice A and credit note B in the Sales invoice list.
  12. Select both invoices and open the Invoice functions button.
  13. Select Update status.
  14. Select Open as the new status for the invoices if the invoices have not been overpaid.
  15. Finally, press Update status.

(If the invoice is overpaid and you delete the incorrect allocation, do not change the invoice status.)

Frequently asked questions

Question: How is the credit note created when I use the “Create a credit note” function?
Answer: The system creates a mirror copy of the charge invoice, where the quantities of the invoice items receive a negative value. The credit note must be printed and, if necessary, sent to the customer so that it can be further handled in accounts receivable.

Question: When can I allocate a credit note to a charge invoice?
Answer: You can allocate a credit note to a charge invoice only after the credit note has been printed or sent and a voucher has been created for it in bookkeeping. The invoices to be allocated must not have the status “paid”.

Question: How do I make a partial credit only for certain invoice rows?
Answer: You can either create a full credit note and delete from the row section those rows that you do not want to credit, or select the desired rows on the charge invoice and use the function Do for selected > Credit selected lines.

Question: How do I make a euro-denominated credit that is not based on a single product?
Answer: Create an item in the product register, for example “Credit”, with a price of zero euros. Create the credit note manually, enter a negative number as the quantity and a positive euro amount as the unit price. Print and send the invoice like other credit notes.

Question: What do I do if the credit note is paid to the customer in cash via bank transfer?
Answer: Create a bank transfer from the credit note by selecting Sales invoice functions > Create bank transfer, add the recipient’s and payer’s bank account numbers and pay the bank transfer. When the payment appears on the bank statement, add a payment to the credit note from the allocation view via the link If the credit has been paid to the customer, add payment. and record the payment date, bank account and the processing method “Normal”.

Question: How do I release an incorrect credit note allocation?
Answer: Find the original invoice A and credit note B in the Sales invoice list, determine the allocation date from the Payments section, search the payments in Sales > Payments and delete both payments (but do not delete their vouchers). Finally, update the invoice status back to “Open” if the invoices have not been overpaid.

Keywords: Credit note, Charge invoice, Accounts receivable, Allocating, Invoice status, Euro-denominated credit, Sales invoice allocating, releasing allocation

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


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