A credit note is a document issued by a seller to a buyer, informing them that a credit is being applied to their account. This is helpful when a buyer has overpaid and instead of issuing a refund, a credit note can be issued for the excess amount. Credit notes are a useful solution for correcting errors, resolving disputes, and addressing customer dissatisfaction in sales transactions. They can be linked to invoices to keep track of accumulated credits at a client level.
Credit notes are essential in cases where a supplier has mistakenly overcharged the buyer or when the quantity of a product received by the customer does not match the invoice. By serving as a deduction against future invoices, credit notes effectively reduce the total invoice amount by the credited value.
To create a credit note in Keka PSA, follow these simple steps:
Navigate to the Project section on the left-hand side menu and click on the Finance tab. Within the Finance tab, locate the Invoices section and find the Credit Note tab. Click on the option to Raise Credit Note in order to generate a credit note.
Select the client and connect the credit note to a specific line item on the invoice. You can include a service or product by choosing from the drop-down menu. Provide details such as Description, Quantity, and Amount.
After entering the information, you have the option to add a note for any specific details about the credit note. Once you have finished, click on Save As Draft to store it in the system for future generation. Alternatively, you can immediately generate the credit note by clicking on Generate Credit Note.
To adjust the invoice amount against the credit note, first, go to the Projects tab on the left-hand side menu. Then, navigate to the Finances tab and select the Invoices tab. From there, choose Due Invoices. Locate the specific invoice for which you need to mark received payments. Click on the three dots under the Actions column next to the invoice, and select Receive Payments from the drop-down menu.
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.
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