In Productive, you can easily issue a credit note in cases of errors, cancellations, or any other adjustments needed on finalized invoices.
Credit notes help keep your financial records accurate and can be applied fully or partially, depending on the situation.
Steps to Create a Credit Note
1) Access the Finalized Invoice
Navigate to the finalized invoice for which you need to issue a credit note, either via Financials > Invoices or directly from the budget's Invoices tab.
Click on the "More Options" icon (three dots) in the upper right corner.
Select "Create credit note."
Note: Credit notes cannot be created for draft invoices.
2) Creating the Credit Note
A draft credit note will be generated for the entire invoice amount not already credited.
Modify the credit note if you wish to credit only a portion of the remaining invoice amount.
3) Negative Values in Credit Notes
All line items on a credit note will have negative quantities, resulting in negative amounts across the credit note.
Finalize the credit note once you've made the necessary adjustments.
4) Linking Invoices and Credit Notes
Finalized invoices linked to a credit note will show a link to that credit note.
Likewise, the credit note will include a link to the original invoice.
5) Finalize and Send the Credit Note
Once finalized, the credit note can be sent to the client, similar to how invoices are sent.
Select "Send to client" to open the email editor and send the credit note.
6) Restrictions
Invoices with linked credit notes cannot be deleted or modified unless the credit note is deleted first.
Viewing Credit Notes
In Invoice Views
Credit notes are treated as invoices in reports and will appear alongside invoices in budget or main navigation invoice views.
The "Amount Credited" field displays the credited value on invoices (zero for credit notes).
The "Amount Paid" field for credit notes is always zero.
The "Amount Unpaid" will decrease by the credited amount, resetting to zero if the credit note matches the full invoice amount.
In Budget Views
Credit notes affect the invoiced amount on a budget.
If the entire invoice amount is credited, it will appear as though no amount has been invoiced, indicating the entire budget amount is still pending invoicing.
