Credit Notes

Today we introduced the concept of Credit Notes. A Credit Note is simply a negative invoice. Unless activated on a customer group or a customer account, negative invoices are not possible.

To enable credit notes go to the customer account and enable the checkbox.

Without credit notes enabled, a negative invoice looks like this:

Notice that the only content on the invoice was negative, resulting in a Carry Forward transaction bringing the total to zero. When posting a negative invoice, a positive carry transaction is attached to the invoice and a detached negative carry transaction is added to the invoicee’s account. In effect, the carry forward is applied to future invoices.

There will be cases, however, where it is necessary to issue a credit note. Enabling the credit note results in this invoice:

Note that the title changes to Credit Note and the total can now be negative.