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Credit note invoice format for Education

hello there mark cunningham here and in this video i'm going to show you a few ways that you can create credit notes and apply them to your sales invoices in xero now in this video i used the australian version of the demo company but you can follow along no matter which version of xero you're using and also this lesson is part of a full course but you don't have to do the course in order to follow along with this lesson so there's going to be a few different types of credit notes that we're going to create the first one is going to be for an unpaid invoice and we're going to create the credit note from inside the invoice screen then we're going to do the same thing except we're going to do it from the main invoices screen instead of from the invoice template screen then we're going to create a credit note for no particular invoice so there's no outstanding invoice for the customer but we need to give them a credit for some reason and also i'm going to show you how you can create these credit notes either for an entire invoice or just for part of an invoice okay so let's start off by creating a credit note from the invoice template screen so we'll go into invoices and we'll go to awaiting payment and we'll just click on that invoice that we created before for bayside wholesale okay so from here this is the invoice template screen all you need to do is go up to the invoice options and just choose add credit note and as you can see xero has gone and created a credit note for the exact amount of the entire invoice so just having a quick look over it from the top here you can see that it's on today's date and it's given it a credit note number based on what we had set up in the invoice settings that we had a look at earlier and then it's just got the one line in here for that particular invoice and then down the bottom it's got the whole 24.99 including gst there so you can see here it says less credit to invoice orc1041 which was the invoice that we originally had there to create the credit so that's all good so this looks fine we'll just go ahead and approve it okay and that takes us back to the invoice that we just started from and you can see down the bottom now it's got less credit note and the 24.99 and the amount to you is nothing so from here we can actually email that to the client if they want a copy of it but um let's go back to the invoices screen and you can see how it's represented here now so it's actually in the paid bucket and you can see we've got the invoice and we've got the credit note net there and they're both showing as nil but that just means that it's all i'm technically paid up and it's no longer in this awaiting payment bucket okay so you can see that that's no longer there so that's how you can create a credit note for an entire invoice from the actual invoice itself so let's now create a partial credit note or a credit note for part of an invoice so we'll go to this one for city limousines that we created before okay so this is a two-line invoice so we'll just once again go up to the options and credit note okay so from here there's a few different ways you can do this the first one is that you can actually just amend the amount itself so let's say you wanted to give a credit um for a hundred dollars of that consulting you can just type 100 in there and you can see there that we've got this 660 credit now instead of for the full amount so that's one way of doing it so for this one we're giving them a credit for 100 of the 1000 and we're also giving them a credit for the full 500 there of the training but let's just say that all we were going to do was give them the 100 credit so we can amend that line like we've done and then the next line we can actually just get rid of it just by clicking on that x and now you can see that all we've got there is the 100 credit plus gst so that's 110 all up so if we just hit approve there so back at the original invoice you can see now that we've got the credit there for 110 dollars including gst and that's been knocked off the 1650 total so now the client still owes us 1540 including gst so let's just have a quick look at this one so we'll just go into the preview just to show you how that all washes out on here so again you can see the amount credited and the 1540 and then this is one that you would most likely have to send to the customer so you can just email it directly from xero or print the pdf and just email it your own way through your own email system so we'll just go back to invoices okay so that's how you can create a credit note for part of an invoice the next thing i want to show you is how you can create a credit note for no particular invoice and the way you do that is you just click on this new credit note button at the top here okay so then you need to pick a customer for which you don't have any invoices currently in the system so what i'm going to do is actually just send a credit note to zero okay because i know we don't have any invoices in the system for them at the moment so this works in much the same way as the other documents you've seen it's just got a date and a credit no number the branding up there we won't worry about any attachments so i'll just put a very simple description in here just to save time okay so i've just gone and filled in the details so we've just got a credit for xero for a hundred dollars and i've just put it to the sales account which has come through as gst on income and then down the bottom it's just added a bit of gst on to it and we've got a total of 110 so that's not attached to any particular invoice that's just going in as a credit in the system and we'll so we'll just hit approve okay and after we've approved it just like normal with these documents you can email it um to the customer if you like or print the pdf and just send it through your own email so let's just go back to the invoices screen and just see how that's represented so because it's not against any particular invoice you can see here it's actually got the minus 110 dollars there so next time you actually go to create an invoice for xero it will ask you if you want to apply that credit against the invoice so that's how you can just create a credit for a customer if they don't have an invoice in the system currently but you need to give them credit for some reason that they can use in the future okay so the last thing i wanted to show you with credit notes is how you can create a credit note and you can apply that one credit note across a couple of different invoices so if we just have a look down our list here of a waiting payment we need to find one where we've actually got a few of them outstanding so you can see with city limousines uh we've got a few um this one's already got a credit note against it but that's still outstanding uh this one here as well um that's actually a separate credit by the look of it and there's this one here so city limousines has a couple um of um invoices outstanding so we'll use that one so what you have to do is go into new credit note okay so i've just selected city limousines there we already know how to create this so i'll just quickly put in some information okay so i've just put in some basic information there this is the credit to city limousines for a hundred dollars in total um i've just changed the gst setting so that's a hundred dollars including gst so if we just approve that this time xero has detected that there's a couple of invoices outstanding so last time we went through that process and we made the credit to zero there was no invoice outstanding so that's why it didn't give us this screen this time xero has detected that there's actually three invoices outstanding so it's asking us how much of the hundred dollars we want to allocate against each invoice so if we wanted to we could put the whole 100 against one invoice so if i do that you can see down the bottom here we've got no credit remaining or instead of doing that we can split it across them so let's just say we put 50 on there and then maybe we just put nothing on there and then we put another 50 on there so we've used up 100 and we've split it over two of the invoices there so we'll just hit allocate credit okay so this is just our usual summary down the bottom here so that's all done we'll go back to invoices and we'll go to a waiting payment okay so we can see our city limousine invoices are still here so this one was fifty dollars more so so you can't actually see on this screen um how much of the credit is there but you can see by this little yellow bit on the icons that means that there's credit against them so i'll just click into this one and you can see there that there's the hundred and ten dollars that we made earlier in this lesson and then there's the fifty dollars that we just allocated then from our split one so that's on that one and then just to finish off if we come down to this one okay you can see the other fifty dollars there so this has actually got a payment as well in there that they've paid um a couple of months ago and there's our 50 credit there so you can see how that credit has been uh split against those two invoices okay that's it for this video don't forget to subscribe to this channel if you'd like to see more free videos and also check out the links in the description below for our xero courses so thanks for watching and i'll see you in the next video