Credit Note
jason1234
Member Posts: 36
As mentioned by some members, I hope Wave can implement a Credit Note feature. This is a very basic and important function for accounting and auditing purposes. Work around it just doesn't cut it. You need to change the title of the document to Credit Note and etc. Please, Wave?
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HI all,
I have invoiced customer on a job and he had fully paid up the amount as invoice. Half way when the job was undergoing, customer request it to be handled over to another party and hence we have to issue credit note and to refund him money which is extra paid. What choices/ways that I can account this with wave?
Exact same issue here. I went digging on Youtube, found the following and gonna do the same. Credit note only comes late on the video. Feel free to skip:
https://youtu.be/NXSWce_SBf4
Thanks @Ezeetrade!
@Pearlrush Services To save you some time, the bit about credit notes is at 10:25, roughly.
Hi @jason1234.
Can you tell me a bit more about how you use credit notes in the context of your business? The more insight you can give us on how this feature would make your workflow easier, the better we'll be able to assess the value of a feature like this to other Wavers!
@Alexia Thanks for your reply.
Well, the ones I generate now from Quickbooks Online and Xero is formatted like an Invoice.
I generate this when an invoice is generated, months later, the client doesn't pay (for whatever reason).
Reason why I do not want to just do a workaround is because this piece of document (Credit note) will be submitted to my GST tax person to reimburse the money I collected for them (GST tax person).
What happens in Quickbooks Online is that when I generate a CN, it matches with the invoice (either automatically or manually selected) and marks it off as "Paid".
Hope this helps.
Hi, @jason1234.
Wouldn't you treat that as bad debt, rather than as a credit note? We do have an article on the Help Center on writing off invoices. You can find it here.
Hopefully, that helps out!
@Alexia
In my given scenario, yes, it is bad debt but that's just one instance. More importantly, like I mentioned above, I need to generate a document in PDF (or if I can print it out) to be submitted to the GST tax man.
Hi there. Would also like to be able to generate a credit note in Wave. One client has paid and I need to refund some of the money due to early payment ( they overpaid) and have been asked to issue credit note when I refund. Many thanks
Hi both!
@jason1234 if you are looking for how to apply an overpayment to a new invoice, we do have a process for that. You can find it here. It might not be exactly what you're looking for, but it might still help.
@MOD You can just handle that by making an invoice with a negative price (you can call that item "Credit Note"). Mark it as paid once you've given the money back to your client. All of your numbers will match up!
@Alexia Thanks for all the replies.
With regards to this, I think a document generated for them with the title Credit Note is the thing we are all asking for. I'm pretty sure there are a lot of work arounds but for the sake of formality and standard procedures in accounting, there should be a credit note to be received by the client. This is required when auditing too.
Hi Alexia, my company requires a Credit Note too, we can't issue "Negative Invoices" as that is not acceptable when we generate our Annual Report for government tax filing (or for audit purposes).
My current workaround is to manually edit the "Negative Invoice" issued in a pdf editor to become a Credit Note, but i don't think thats sustainable in the long run.
Hi, @Berenice.
You could make a secondary business and use it just to have a template for Credit notes. You would still have to account for it with a journal entry in your main business, but you can use a customized invoice from an alternate business to create the actual document.
Here's how to customize your invoices.
@Alexia cc @Berenice
I thought of that but it wont be ideal if the Credit Note still says invoice in these fields, amount due and there's a due date.
Hi, @jason1234.
It isn't a perfect solution, as our invoices are not completely editable, but it does the trick for now, for a few of our users. It is, however, very much a workaround.
Hi @Alexia
Thanks. My workaround is create a Credit note using Excel. LOL
My accountant and auditor wasn't too happy looking at the details on that "workaround credit note" lol
So, now that I have to create a credit note, I realised that the inability to create a credit note document is one thing. The other issue is that the workaround won't deduct the amount from the generated invoice, which in turns affect your P&L. LOL @Alexia I think we need this feature. hehe
Hi, @jason1234.
You mean the workaround for overpayment? Once you assign the overpayment to your next invoice, it will be recorded as an invoice payment.
I can't make any promises, but I'll make sure to forward your feedback.
Hi @Alexia ,
We really need Credit Note feature. Appreciate if you can add this feature. Thank you.
Hi - I too need this feature.
Reports and dashboard status do not reflect correctly due to Neg values ignored (for bad debt or neg invoice used as credit note)
To be honest, not sure why it is so hard to get a proper 'credit note' facility added to wave?
Hi, @Sigma.
Negative values on invoices wouldn't be considered expenses, but negative income, so that's how they would appear on your reports.
As for handling bad debt, we do have a guide on the Help Center to help out. You can find it here.
@Alexia I would also appreciate a Credit Note Feature.
Hi, @Julian.
Can you tell me more about how you use credit notes in the context of your business? Do you find you need them very often? How do you handle situations that require credit notes right now?
Hi @Alexia
I have just started using Wave and also need a feature for issuing credit notes. Just stumbled on this thread when I was looking for a solution. We issue invoices for annual membership subscriptions. Most of these are paid, but there is usually one or two where people decide they don't wish to renew their subscription.
For accounting purposes, issuing a credit note is really the only way to go about this and having to issue a second invoice with negative amounts isn't suitable.
It sounds like a credit note feature would be a big help for a lot of Wave users - would really appreciate it if you could make the addition of a credit note feature a high priority
Thanks!
@Alexia i just been asked for credit note and i issued or updated to the invoice to R0.00 and the client accountant said i just created a fictions invoice. i do support a call for a credit note feature as a need more than a luxury.
Thank you both, @Amanda and @Themba75, for adding your voices to this discussion.
I can't guarantee that this feature will be added to Wave, but know that feedback from our users has a significant impact on what we choose to build next, so thank you for taking the time to share yours.
Please add the Credit Note feature as soon as possible. We really need it.
Thanks a lot!
I also ask personally, please add Credit Note feature. I'm actually very surprised that during 2 years I'm using WaveApps you haven't done it already.
If I need to cancel an invoice that has been raised 6 months ago (because it turns out amount was wrong, or the deal changed, or etc.) I cannot just delete it as it has been already submitted to Tax Authorities. I have to issue a Credit Note (which is basically a negative invoice) except it has to say "Credit Note" instead of "Invoice". My accounting firm in UK does not accept anything else. So I guess it is a common practice for crediting and canceling invoices.
Hi, @Christine and @tutotoons. Thank you for your feedback.
If you're looking to write off an invoice, we have a guide that will walk you through the steps to do so in our Help Center. You can find it here It's not a perfect solution, but it might help out in the future.
@tutotoons, in your situation, you could create a secondary business and make a credit note as an invoice there, and then change the "Invoice" header to say "Credit Note" instead on the Invoice Customization page. This way, the changes won't affect your actual business' invoices and will give you a document issue. You can then enter it again as a negative invoice to your real business so that your numbers match up. This is very much a workaround, and it won't be perfect (there are instances of the word "invoice" that can't be removed), but it might be good enough for now, in the absence of another option.
Thanks @alexia, this will work for now, however it really feels like your team should consider adding this feature into a main system.