Discover Effective Credit Invoice Example for Accounting

Credit invoice example for Accounting

this video we're going to use sage cloud accounting to create a sales credit note for a customer who has already paid their invoice and apply that credit note to a future invoice when you're creating a credit note against an invoice that hasn't been paid yet you can easily just use the add credit note link on the invoice itself but since this invoice is paid that add credit note link is not available so in this case we're going to go to sales and sales credit notes click new credit note add the name of our customer that we're creating the note for and the date and give them a credit as appropriate in this case we're just giving a flat 25 credit you can make this as detailed or as simple as you like you can also use if you have a ledger account for discounts or returns you can use that to keep track of what you've built people for and what has been returned we're going to save the credit note and at this point the credit note is still outstanding to the customer we technically owe them 25 worth of credit to allocate this to their new outstanding invoice that hasn't been paid yet we can click on their name here which brings up their account summary and we can see that they have an outstanding invoice that they haven't paid and a credit note that we've just created to apply that go to manage account allocation tick both boxes on the credit notes and you can apply multiple credit notes and multiple invoices if you need to just change the invoice the amount to match the amount of the credit note when we're all done this amount left to allocate should be zero click save and if we look at their customer summary now we see that the credit note has been dealt with there's nothing outstanding and the amount of the invoice has been reduced by the amount of the credit