How to create a credit note
This article explains how to issue an individual credit note. It also explains how to create a credit note from an invoice, which you might need to do if you want to cancel or refund an invoice.
Creating a credit note from an invoice
In most cases, you can create a credit note directly from a sent invoice in FreeAgent. Simply navigate to the 'Work' tab, select 'Invoicing' and then choose the relevant invoice reference number from the list to display the invoice.
From there, select the 'Create Credit Note' button.
FreeAgent will now use the information on the invoice to generate a corresponding draft credit note. The credit note status will be clearly marked on the document itself and the amount will be displayed as a negative figure.
You’ll then be able to edit the credit note, just as you would a draft invoice. When you’re happy with it, you’ll be able to email the credit note to your client, mark it as sent or download it or print it.
Create a new credit note from scratch
1 Navigate to 'Contacts', 'Projects' or 'Invoicing'
You can create a new credit note directly from the contacts or projects overview screens. Just select 'Add new' and choose 'Credit Note' from the drop-down.
Alternatively, you can create a new credit note from the 'Invoicing' section. Navigate to the 'Work' tab, choose 'Invoicing' and then select the 'Add New Credit Note' button at the top right of the page.
2 Enter the contact and project details
Contact
If you’re adding a credit note for a contact, choose a client from the 'Contact' drop-down menu. If it's a new client, you'll need to enter them as a contact first. You can also quickly add a new contact by selecting the 'Or, add a new contact' link next to the contact name drop-down. Bear in mind that if the contact is hidden, you won't be able to see them on this list.
Project
Once you select a contact, you have the option to attach it to a project. You can also leave it as the default 'No Project' option.
3 Fill in the credit note details
Credit Note Reference Number
You’ll notice that FreeAgent automatically gives each credit note a reference number. We use the same referencing system for all of your invoices and credit notes, to make sure that they all have unique references. If you wish, you can set FreeAgent to generate client-specific or project-specific credit note reference numbers. You can specify this using the 'Edit Details' button of the appropriate contact or project.
4 Add in any extra options
Select the arrow next to 'More Options' to display this area and choose any extra options that apply.
Credit note discount
If you need to apply a discount to the credit note, for example, if the initial invoice had a discount applied, you can enter that discount percentage here.
Client Contact Name
If you’re sending the credit note to someone other than the person listed as the contact for that client, enter the name of the person you want to address the credit note to. (e.g. if the listed contact is the purchase ledger clerk and you want to send the credit note to the finance manager).
Bank Account
By default, the details of your primary bank account in FreeAgent will be displayed on your credit notes. However, if you would like to refund the customer from one of your other bank accounts in FreeAgent, you can choose to display the details of that account on the credit note instead. To do this, simply select the appropriate account from the 'Bank account' drop-down menu.
And that’s it!
Select 'Save Changes' to create your new credit note. You'll then see the newly created credit note, and which point you’ll be able to add new items and send it to your client.
