Credit notes function as negative invoices. However, it is not as simple as creating a sale credit note to offset a sale invoice on the same order. As DEAR does not automatically link the positive and negative invoices together, both documents must be closed out for the financials to add up correctly. This is done using the Customer Credits function. This is most commonly used when a credit note has been applied as part payment in Xero and QBO, needing to be closed out manually in DEAR.
For more information on purchase invoices, see Applying Credit Notes as Part Payment - Purchases.
- Set up an account for Customer Credits (necessary).
- Familiarity with Processing a Sale (necessary).
- Familiarity with Credit Notes (necessary).
To close the sale invoice
- Navigate to Sale → Sales and select the sale order which needs to be closed.
- In this example, a credit note of $400 has been applied to an order of $2000. You can see that both the credit note tabs and invoice tabs have a balance due – this is what needs to be closed out.
- In the Credit Note tab, choose +Customer Credit. A pop-up window will appear with the credit note amount pre-filled. Click Create to continue.
- The refund will be paid into the Customer Credits account, closing out the credit note balance. Save before moving to the next step.
- Next, the invoice needs to be closed. Go to the Invoice tab, click +Use Customer Credit and select the customer credit we just added.
- You will see that the credit note has now been discounted from the invoice total, leaving a nil balance in the Customer Credit account. The remainder of the invoice can be paid as usual to completely close out the order.