Question asked by Katrin Kerber 10 years ago
A client overpaid me a few months ago. We agreed to create a credit note for that amount and then allocate the funds against future invoices from me. The company has shut down before I could invoice for all of the credit note’s amount and I am now asked to refund the outstanding amount.
I know how to send a refund to the client, but how do I cancel/void the outstanding amount of the credit note or allocate it against the refund?
Oh sorry I also should have confirmed if the credit note already allocated to other invoices too?
I will assume it is, so the only way to clear a credit note is to allocate to an unpaid invoice (in future you will be able to allocate to a payment). In a case where there is a partial allocation remaining on a credit note you could do the following:
1 On the Settings>Codes menu create a new account called overpayments
2 Create a new invoice coded to this account for the amount outstanding on the credit note.
3 Allocate the credit note to this new invoice
4 Create the refund again coded to the account overpayments
If you have any queries about this please let me know.
Oh also if the credit note is not allocated to any other invoices just click on the credit note number and void and create the refund to replace it.
Best answerThank you very much John. Since part of the credit note’s amount has already to an invoice, I will follow your steps.
No.
Hi Katrin,
Has the credit note been included in a VAT return?
You must 