This comprehensive guide will teach you how to create credit notes, apply them to invoices, and streamline your billing process
TABLE OF CONTENTS
- What Are Credit Notes?
- Benefits of Credit Notes
- Steps to Create a Credit Note in Keka PSA
- How to Apply Credit Notes to Invoices
Efficient financial management is vital for maintaining strong client relationships, and credit notes play an essential role in achieving this. They provide a streamlined way to resolve overpayment issues, address discrepancies, and improve transparency in invoicing. This guide explains how to create and apply credit notes in Keka PSA, ensuring accurate and efficient handling of client accounts.
What Are Credit Notes?
A credit note is a document issued by a seller to a buyer to adjust the buyer's account. It is typically used in scenarios such as:
- Overpayments made by the buyer.
- Corrections for billing errors or overcharges.
- Addressing product or service discrepancies.
- Resolving disputes or customer dissatisfaction.
Example:
If a buyer overpays ₹10,000 for an invoice worth ₹9,000, a credit note for ₹1,000 can be issued. This amount can then be applied to a future invoice, effectively reducing the payable amount.
Benefits of Credit Notes
- Error Resolution: Correct billing mistakes without issuing refunds.
- Improved Client Relations: Maintain transparency and build trust.
- Efficient Account Management: Keep track of client credits and apply them seamlessly.
Steps to Create a Credit Note in Keka PSA
1. Navigate to the Credit Note Section
- Go to Projects and click on Finance tab under which click on Invoices. Click on the Credit Note tab. Select Raise Credit Note to initiate the process.
2. Input Credit Note Details
- Select the Client: Choose the client to whom the credit applies.
- Link to Invoice: Connect the credit note to a specific invoice line item.
- Enter Details: Add the service/product, description, quantity, and amount.
3. Save or Generate the Credit Note
- Click Save As Draft to store the credit note for later use.
- Alternatively, select Generate Credit Note to finalize and issue it immediately.
How to Apply Credit Notes to Invoices
1. Locate the Invoice
- Navigate to the Projects section, click on the Finance tab, and then select Invoices followed by Due Invoices. Locate the specific invoice to which you wish to apply the credit.
2. Apply Credits to the Invoice
- Click the three dots under the Actions column next to the invoice and select Receive Payments.
3. Input Payment Details
- In the payment screen, check the box that says "Apply Credits to This Invoice." Here, you will be able to view the total credit available and input the specific amount to apply to this invoice. Don't forget to include details like the Payment Date, Payment Mode, Reference Number, and Amount Received. Once all the information is entered, click on Add to complete the process of applying the credit from a previously created credit note and mark the payment as received.
- Click Add to confirm the adjustment.
To explore further details on managing client payments, including receiving full and partial payments, as well as utilizing credit notes, click on this link: Managing client payments- Receiving full and partial payments, & credit notes