Add a bill credit note

This article explains how to add a credit note that you've received from a supplier into FreeAgent.

Bill credit notes are credit notes that you receive from a supplier.

If the credit note relates to money owed before your FreeAgent start date, you’ll need to enter manual bank transactions after adding the bill credit note.

Before you start

Check that the supplier you are adding the bill credit note for has been added as a contact, either by uploading their information into FreeAgent, importing them from Basecamp or manually adding them as a new contact, before following the steps below.

Adding the bill credit note

Navigate to the 'Bills' tab at the top of the screen.

Select ‘Add new bill’ and follow the steps for adding a bill in FreeAgent.

In the 'Bill Contents' section, enter the total price for the line item, or add multiple line items if the bill credit note has more than one line item, as a negative amount.

Once you've created the bill credit note, you may need to net the bill credit note off against a bill.

Credit note for money owed before your FreeAgent start

If the credit note from the supplier is dated after your FreeAgent start date but relates to money owed before your FreeAgent start date, first add the bill credit note.

Then, enter two manual bank transactions dated the same day and for the same amount as the bill credit note, including VAT:

• Money in: ‘Type - Bill Refund’ > Select the newly added bill credit note
   
• Money out: ‘Type - Other Money Out’ > ‘Category - Payment to Initial Creditor’

These will net off (cancel out) against each other, show the bill credit note as fully paid and will reduce the trade creditors total as required.