Navigating the process of raising a refund and credit note (CN) for a fully paid sales invoice might seem intricate, but it's an essential skill in maintaining strong customer relationships and accurate financial records. Whether due to an error or a change in circumstances, being able to handle refunds and credit notes effectively ensures your business remains transparent and customer-centric. In this guide, we'll walk you through the steps to confidently initiate refunds and credit notes on fully paid sales invoices in TreezSoft Cloud Accounting, ensuring your financial transactions stay organized and your customers stay satisfied.
There are a few steps you need to do to record refunds and CN on fully paid sales invoices in TreezSoft.
- Unapply the payment linked to the invoice
- Raise a new CN against the invoice
- Raise a refund against the payment received
1. Unapply the payment linked to the invoice
This step is crucial so that you can "free out" the invoice and payment document so that you can proceed to raise CN and refund them. Remember to click Save.
Go to Customers > Received Payment
Select the respective Receive Payment document.
Untick the invoice to un-apply the payment with the invoice.
2. Raise a new CN against the invoice
After unlinking the payment and invoice, you can raise a CN to deduct the sales from the respective invoice.
Go to Customer > Refund and Credit > Credit Notes
Create a "New Credit Note"
Fill in the new credit note details to tick the respective invoice that you want to apply the CN.
a. Select the respective customer
b. Fill in the "Remark"
c. Choose the account code for the CN
d. Key in the amount
e. Tick the respective invoice to apply the CN
f. Once done, click on "save" to save the record
3. Raise a refund against the payment received
This step is to minus out the fund's portion so that it tele with your bank record.
Go to Customer > Refund and Credit > Refunds
Create a 'New refund' to make a refund on the payment received
Fill in the details to record your refund to deduct the received payment.
a. Select the respective customer, the account used to refund the customer, and the amount
b. Enter a remark for your future reference
c. Tick in the respective payments document
d. Click Save to save the refund details
In a nutshell, knowing how to issue refunds and credit notes for fully paid sales invoices is a smart move for your business. It helps keep things fair and accurate. By following these steps, you'll keep your customers happy and your books in order with TreezSoft Cloud Accounting.
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TreezSoft is a cloud accounting software for Small and Medium-sized Enterprises (SMEs). It allows you to access your financial information anytime, anywhere. It also allows you to have unlimited users for FREE for your account in TreezSoft. Our aim is to help reduce our clients' time spent on accounting mainly by using our automated processes and integration to help increase their company efficiency at minimum costs. SMEs can use TreezSoft to keep track of their expenses, accounts, daily operation e.g. Point of Sales (namely QPOS) system and etc.
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