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Linking a credit note with an invoice in CashCollect
Linking a credit note with an invoice in CashCollect
Orane Bayard avatar
Written by Orane Bayard
Updated over 9 months ago

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

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