Apply, refund or void a credit note

Apply credit to an open invoice

1. Open Sales, then Credit notes.
2. Open a credit note with an amount in Not yet used.
3. In Apply to an invoice, choose the Invoice.
4. Check the Amount and Date.
5. Select Apply credit.

Applying posts nothing, because the credit note already credited Accounts Receivable. The invoice's balance due goes down. An invoice whose balance reaches zero this way shows as Paid.

Only that customer's open invoices are listed: sent, viewed, partial or overdue with a balance due. The amount can't be more than what is left on the credit note or the invoice's balance. The date can't be before the credit note or the invoice, in a closed period, or before the day the credit was last removed from an invoice or had a refund voided. In Nonprofit, a credit note applies only to the invoice it came from.

You can also start from the invoice. When the invoice is open and the customer has credit not yet used, the invoice shows a Credits card with Apply credit. It uses the oldest open credit note and today's date, or the credit note's date if that is later.

To take a credit back off an invoice, select Remove beside it under Applied to invoices. The amount returns to the credit note and the invoice's balance goes back up. Nothing posts. The row stays listed as Removed.

Refund the customer

Warning

Recording a refund posts a journal that takes the money out of the account you choose. It doesn't send money. Pay the customer separately.

1. Open the credit note.
2. Select Refund the customer.
3. Enter the Date and choose the account in Paid from.
4. Check the Amount.
5. Enter a check number in Check or reference if you have one.
6. Select Record refund.

The refund debits Accounts Receivable and credits the bank or cash account you paid from. You can refund up to what is left on the credit note, dated on or after the credit note and not before the day it was last removed from an invoice or had a refund voided. Refunds need Record payments received.

To undo a refund, select Void beside it, enter Why and select Void refund. This reverses the refund's journal and needs Delete payments received.

Match the refund to its bank line

When the refund shows up on your bank feed, link the bank line to the refund rather than categorizing the line, which would post the refund a second time. QixCount never links a refund on its own. You confirm it in one of two places:

• In Bank transactions, QixCount proposes the refund's entry as a pair when the withdrawal is exactly the refund's amount, comes from the account the refund was paid from and is dated within three days of the refund. Select Confirm pair with your entry on the line. Nothing new posts.
• In a reconciliation, select the link icon in the bank row's Match column to open Suggested Matches. A withdrawal of exactly the refund's amount, from the account the refund was paid from, lists it as Refund on credit note with the credit note number. Select Accept.

A refund is matched to one whole bank line. It can't be matched for part of a line or together with other records. Voiding a matched refund releases the match, and the bank line comes back for review.

Void a credit note

Warning

Voiding reverses the credit note's journal on today's date and puts the tax it took back on the same date. You can't restore a voided credit note.

1. Remove each application and void each refund on the credit note.
2. Select Void this credit note.
3. Enter Why.
4. Select Void credit note.

Voiding needs Void invoices. The option appears only when nothing is applied or refunded; until then, a note in its place says what to remove or void first. Voiding doesn't remove the tax the credit note took back from its own period. Instead, sales tax reports get offsetting rows dated the day you void it, so a period already filed keeps its figures. A closed or locked period can block the reversal.

Correct the credit note or refund on this page. Its journal cannot be reversed separately in Journal entries.

An invoice can't be voided while any credit note is applied to it. It also can't be voided while a credit note issued from it is still active, even if that credit note is unused. Its Void Invoice option stays hidden until you remove the applied credit and void the credit note issued from the invoice, as described above.

Credit note statuses

The Credit notes list shows the total Not yet used, with a status filter and a search by number or customer. Accounts receivable aging subtracts applied credit from each invoice. When Show is All Outstanding and you haven't selected a bucket, it also notes the credit not yet applied below its table.