A credit note will be needed when you have invoiced for services or supplies which no longer apply and you need to reduce the total amount of this initial invoice.
For example, you have agreed to sell 10T silage to another farmer and have sent the invoice. You only ended up providing 8T as they didn't need the whole amount anymore. The invoice has already been saved and sent, and you now need to send a credit note to account for the refund of 2T silage.
Follow this process to create the credit note:
In the Needs Action screen select to Record a Money Out invoice.
2. Enter in the details and description of the amount to be reduced and ensure the total is a negative amount.
3. Click on the dropdown box next to the Save button, and select to Save and Preview Credit Note.
4. You will get a notification to ensure you have entered Other Party and description correctly. Once you click Continue you cannot change this Credit Note.
5. You will see a Preview of the Credit Note. If you are happy with the information, click to Generate Credit Note.
6. The Credit Note will now be sitting in your Needs Action screen, clearly identifiable by the CN prefix on the invoice number. You can now Match this to the relevant transaction along with the initial invoice.