CashCollect allows you to manage your client invoices and credit notes, which can be linked to an invoice or stand alone.

Linking a credit note to an invoice will impact the total outstanding amount of that invoice (or remaining amount to be paid): it will be decreased by the same amount as the credit note amount.

How to link a credit note to an invoice

Importing and visualizing your credit notes

Before linking a credit note to an invoice, you must make sure all your credit notes are imported into CashCollect. You can find them in the Client Invoices > Credit notes tab.

Linking your credit notes with an invoice

You must link a credit note to an invoice from the invoice details side panel on the Invoices page.

From the Client Invoices > Invoices tab, click on a given invoice on which you want to add a credit note. On the invoice side panel, click on the Link credit note action.

On the pop-up that opens, you can choose the credit note(s) that you want to link to your invoice.

The credit notes displayed in this pop-up all have the status available and have the same client as the invoice selected.
You can link one or several credit notes to the same invoice
The sum of the amounts of all credit notes must be inferior or equal to the invoice total amount.
The credit note currency must be the same as the invoice currency (the credit note with a different currency will be displayed in the list but it won't be available for selection)

What are the impacts of linking a credit note to an invoice

1. Impacts on the invoice details

The outstanding amount of the invoice is updated
- It is decreased by the amount of the credit note(s) linked to the invoice
- If the outstanding amount is down to zero (because the credit note linked is of the exact same amount), the invoice is automatically marked as paid
- In the Reconciliation tab, the invoice amount to be reconciled is updated with the new outstanding amount
- In the follow-up emails, the invoice amount to be paid is updated with the new outstanding amount

The invoice timeline is updated with the event "Credit note linked"

The linked credit note is displayed in the invoice detail
- You can unlink the credit note from the invoice detail

Some actions on the invoice are unavailable to avoid conflicts, the credit note must be unlinked in order to be able to do them :
- Mark invoice as "Pending" (if the invoice was paid)
- Edit invoice (change client, amount and currency)
- Cancel invoice
- Delete invoice

2. Impacts when updating the invoice

When marking an invoice as paid (manually, via reconciliation, or with an update via invoice import): a payment with an amount equal to the invoice previous "outstanding amount" (updated taking into account the credit note) is added on the invoice.
If an invoice amount is updated with an import:
- We will differenciate the invoice total amount (initial amount) and the outstanding amount (that takes into account the credit note).
- The invoice total amount will be updated and the outstanding amount will be re-computed taking into account the new initial amount and the linked credit note amount.
- If New_total_amount > Outstanding_amount
  - Then Total_amount = New_total_amount
  - And Outstanding_amount = New_total_amount - Partial_amount - Linked_credit_note_amount
- If New_total_amount < Outstanding_amount
  - Then the invoice is marked as paid

3. Impacts on the credit note

The credit note is marked as used
- It automatically disappears from the Client invoices > Credit notes tab of CashCollect that only displays available credit notes by default. To display used credit notes use the status filter on the top of the list.
- Remaining_amount = 0
- As a used credit note, it cannot be updated via import.

The detail of the linked invoice is displayed on the credit note details
Some actions on the credit note are unavailable to avoid conflicts, the credit note must be unlinked in order to be able to do them :
- Mark credit note as "Available"
- Edit credit note
- Cancel credit note
- Delete credit note