How to create a credit note

Invoiceplace now provides a simple way to create credits notes (or credit memos). Now you can issue refunds and other forms of credit to your customers.

What is a credit note / memo?

A credit note is essentially a ‘negative invoice’, typically used in these scenarios:

  • Your customer returns faulty or unwanted goods
  • The amount is reduced for an invoice your customer has already received
  • You provide credit to your customer for another reason.

When you issue a credit note no money changes hands. Your customer will now have a credit added to their account, which can be used as a discount on future invoices.

An example credit note which can be used a template is available here:

How to create a credit note

1. Create an invoice.

If you are issuing a credit for goods returned save time by copying the original invoice. Only keep the line items for the returned goods.

2. Enter negative quantities to create a credit note from an invoice

Change the quantity for goods returned to a negative number. If 4 electrical switches were returned enter -4.

If a credit memo is created to reduce the amount of an already issued invoice use a unit type of ‘Each’ and a negative quantity. For example to provide a credit of $100 enter a quantity of -1, unit type of ‘Each’ and amount of 100.

3. Print or email

Print a credit note or email it directly to your customer as a professionally formatted PDF or Word attachment.

How does a Credit Note affect inventory?

When a credit note is issued for returned products the stock on hand will increase. If a customer is issued a credit but no goods are returned ensure a product is not selected.

Credit notes and customer account balances

Issuing a credit memo will decrease the balance that your customer owes you. In the example below a new customer has an zero balance.

If you issue a credit note of -$50 to this customer their balance is now -$50.

Now Invoiceplace provides the flexibility to issue credit notes. Manage customer returns, adjustments to already issued invoices and credits for any other reason. Take control of managing your business and upgrade to Invoiceplace for easy online invoicing and quotes from anywhere!

Try Invoiceplace today – Easy Invoicing And Quotes From Anywhere. Sign up for free, click here to start.

Inventory basics for small businesses

How does inventory affect profit and loss statements, and cash flow? Find out here.

Multi currency invoicing improvements for products

Take advantage of improved multi currency invoicing using Invoiceplace and create products for the goods and services you provide for sales to anywhere in the world.

You can now create products with a price and currency specific for each country you do business in, which enables you to set standard prices that take into account the going rates and inflation in local markets. You can also adjust the tax rate if overseas sales are tax free.

Create a product in a different currency

A currency field is now displayed for a product, which automatically defaults to the currency of your account. Existing products will use your account’s currency.

One currency for products sold on invoices

You can only create a tax invoice in a single currency, and cannot use products in a different currency on the same invoice. This will make sure you don’t accidentally create an invoice using your overseas rate for a local sale, for example.

Copy a product

To make it easier to create products for different currencies there is now a copy option. You can use the same product code for different currencies, and vary the price and rate of tax as required.

Now with multi currency products you can use Invoiceplace for easy invoicing and quotes from anywhere, and do business with anyone in the world!

Try Invoiceplace today – Easy Invoicing And Quotes From Anywhere. Sign up for free, click here to start.

How to keep count of your stock – easy inventory management

Use Invoiceplace for easy inventory management – keep track of products sold so you will never run out of stock. The Stock on Hand (SOH) is automatically maintained for all of your products, and you can make stock adjustments to change the levels as required.

What does Stock On Hand / SOH mean, and how is it calculated?

The Stock On Hand or SOH is the total number of products that are available for sale, and have not been sold already.

Invoiceplace calculates the SOH as: (Total number of stock adjustments) – (Total number of products sold on invoices)

When an invoice is deleted any products that were on the invoice are added back to inventory. For example if you create an invoice for an professional photography session and include 2 photo albums then the SOH for the photo album is decreased by 2. If you delete this invoice, the SOH for the photo albums is increased by 2.

The SOH is not changed when you create an invoice template or a quote template that uses products in the invoice line items. Similarly creating a quote which has products will not change the SOH.

A stock adjustment will increase or decrease the SOH (see the next paragraph).

What is a stock adjustment?

A stock adjustment updates the number of products that are available. This would be done after receiving a shipment of stock from an external supplier, or when you create/manufacture more stock yourself.

Benefits of inventory management with Invoiceplace

  1. Instantly know when you need to re-order more stock.
  2. Doesn’t take more time or effort to use – Stock On Hand is automatically adjusted when you create or delete an invoice.
  3. Flexible and easy inventory management software – adjust stock levels for any reason in one simple step (i.e. after receiving a shipment from a supplier, during stock take, removing damaged or lost stock).

How to calculate stock on hand and stock adjustments

Adding inventory / stock is done in one simple step, and you don’t need to manually calculate the stock on hand – whenever you create or remove an invoice the SOH is automatically adjusted for you. When you receive a shipment from your supplier follow the instructions below to adjust stock levels.

1. Login to Invoiceplace and click on the Products tab.

Products Inventory Showing SOH And Stock Adjustments

The Stock On Hand is displayed for each product. There is no need to manually calculate the stock on hand – this is done automatically.

2. To create a Stock Adjustment click on the link titled ‘New Stock Adjustment’.

Click on Stock Adjustment Button

Enter the details for the stock adjustment:

Create A Stock Adjustment to adjust Stock on hand

Date Received: This is the date when you physically received or added to the stock available. This is not the date that you order more products.
Reference Number: This is the reference number used by the person or business supplying the products to you. This will typically be the invoice number from your supplier.
Product: Choose the existing product for which you need to update the stock levels.
Qty: This is the total number of products that you received or produced for this stock adjustment.
Unit Type: The unit type is automatically set from the product.
Notes: Used to enter any useful comments or extra information about the stock adjustment.

Not only does Invoiceplace provides invoicing software to make your billing fast and professional, now you can take control of your inventory as well!

Try Invoiceplace today – Easy Invoicing And Quotes From Anywhere. No sign up required, click here to start.