A Credit in Workshop Software is used to issue a Refund to a Customer or to create a Credit Note that may be applied to the Outstanding Balance of any Invoice issued as an Account Invoice (One that may be paid on terms e.g. 14 days).
Credits created as a Cash transaction immediately record a Refund and return any Products included on the Product list to your Workshop's stock.
Credits created as an Account transaction instead create a Customer Credit that may be applied to a Customer's outstanding Account Invoices or Refunded.
Please Note: When creating Credits please set all Product Prices to a Positive value, the Credit process will correctly handle the negative Balance.
- Any New or Existing Invoice may be converted to a Credit using the Invoice Type field, click into this field and Select Credit.
- In the Products List add any Parts your customer is returning, the Credit will reflect the current Unit Price and any Product Included in a Credit will be returned to your Available stock.
Please Note: If you only wish to issue a Cash Refund use a Product which has been configured to Don't Upd. Qty., these will not modify your current Stock levels.
- Then click Save and follow the instructions below to Process the Credit as a Refund or Credit Note.
Refunding a Customer - Cash Credit
When the Account Type toggle of a Credit is set to Cash, processing the Credit will immediately refund the Total of the Credit to your Customer and return any included Products to stock.
- Set the Account Type toggle to "Cash".
- Confirm the Total refund is correct and then click the Process button to issue the Refund.
Creating a Credit Note - Account Credit
When the Account Type toggle of a Credit is set to Account, processing the Credit will create an unapplied Credit balance which may be refunded or applied against the unpaid balance of an Account Invoice.
- Set the Account Type toggle to "Account".
- Confirm the Total Credit value is correct and then click the Process button to issue the Credit.
Please Note: Unapplied Credits are not automatically applied to outstanding Account Balances. Please follow the instructions below to apply apply a Credit to an an Outstanding Account Invoice or Refund them to your customer.
Applying an Unapplied Credit to an Account Invoice
Unapplied Credits may be Applied to Processed Account Invoices, reducing their Balance by the value applied.
- Begin by accessing a Customer or Vehicle associated with a Credit, in the list of Customer Invoices click the pen Icon or double click to open the Processed Credit, you may also search for and open the Credit directly.
- Click the Star icon in the top right of the Customer Invoice Card for the Credit and choose Apply Credit.
- In the Apply Credits page click the Magnifying Glass icon below the Invoice List.
- In the pop up select the Invoices which you would like to apply your Credit Balance to, click the Select button.
- In the Applied Amount field enter how much you would like to apply to each Invoice, then click the Apply button.
Please Note: If you have Unapplied Credits when creating a Customer Payment they will be shown in the Available Credit field, you may click the Apply button to Apply them before continuing with the Payment.
Refunding an Unapplied Credit
Unapplied Credit Balances may be also be directly Refunded to a Customer.
- Begin by accessing a Customer or Vehicle associated with a Credit, in the list of Customer Invoices click the pen Icon or double click to open the Processed Credit, you may also search for and open the Credit directly.
- Click the Star icon in the top right of the Customer Invoice Card for the Credit and choose Refund Credit.
- Confirm you would like to issue the Refund with the Yes button in the Pop Up.
- You may then select the Refund method, add a Reference and choose Process to complete the Refund.
Removing an Applied Credit from an Invoice
If you have Applied a Credit to a Processed Invoice you may remove the Credit to return it to your Unassigned Credits Balance.
Please Note: You must remove any Applied Credits before Voiding an Invoice.
- Begin by opening the Invoice which has an Attached Credit.
- In the Credit Applications card, click the Star Icon then select Reverse Applications and in the pop up confirm you would like to Reverse the Credit Applications with the Yes button.
Using Copy to Quickly Create a Credit
If you wish to Credit or Refund one or more Products contained in an Invoice that has already been Processed the Copy Invoice tool will quickly create an editable duplicate of any Invoice.
Once this you have created this Duplicate and changed the Invoice Type to "Credit" you may follow the instructions above to Refund or create a Credit Note for your Customer.
Good to Know
- You can print, email, or SMS the credit invoice to your customer once it is ready.
- You can search for a customer by name, phone number or email address using the search bar.
Frequently Asked Questions
Does a credit note sync to my accounting system?
If you have an accounting integration enabled (such as Xero, MYOB, or QuickBooks), the credit will sync to your accounting system on the next sync cycle, keeping both systems in balance.
Will this change affect existing invoices for this customer?
Changes to customer details apply to future invoices. Existing completed invoices retain the details that were on the invoice at the time it was created.
Related Articles
- Credit a supplier invoice
- Apply a supplier credit to a supplier invoice
- Delete or Void an Invoice and/or Payment
