Credit Note

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Comments

  • BarsinABarsinA Administrator Posts: 260 admin

    Hey there @NeilR

    There's no doubting what you're saying is correct in that our free accounting software needs some work in order to hit the industry standards for people whose books are more complex. I just want to add however that the goal has always been to give back to the small business owner, whose needs are perhaps a little simpler when it comes to their bookkeeping. This of course is a good sign for your business, as it tells us that you've grown and that you require more from an intro level accounting software. So look at this as a plus. I appreciate your feedback and we apologize for any erroneous transactional data which may have show up in your account.
    We've operated for the small business owner whose transactional data is a little less robust (perhaps) than yours and the needs of some other business owners. But with that being said we are currently working on the back end of the invoicing so that we can begin introducing new features. We appreciate your business with us, and also your feedback. Hope you have a great weekend.

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 173 ✭✭✭

    The only way you can "ignore" credit notes is if you are operating on, and reporting by, cash basis alone. The minute you start using a Sales and Purchase ledger - which Wave doesn't discourage (creation of customer accounts = Sales Ledger) then you MUST have a facility to create/enter credit notes - the size of the business is irrelevant, the existence of customer accounts makes it a basic necessity. If you do not want to have a credit note function you need to turn Wave into a cash receipts and payments product only!

  • SanderSander Member Posts: 1

    I have to echo what Andrew said. The use of credit notes has nothing to do with the size of somebody’s business. Anybody could have the need to provide a credit to a customer, and it’s a basic function of accounting that I had no idea was missing from Wave when I started using it. This really needs to be made a high priority.

  • AlarmManAlarmMan Member Posts: 2

    I joined just to say credit notes are fundamental to my accounting. I invoice customers for services, if they don’t pay the bill, no service, but I then need to cancel the invoice. So PLEASE prioritise this.

  • MyronMyron Administrator Posts: 143 admin

    Hi @Sander @AlarmMan , thank you for jumping in to share your feedback on this. Sharing your thoughts on this in the community helps to increase the visibility of this feature request. We appreciate you all sharing a bit about your business and your individual use cases for credit notes.

    @AlarmMan , in the situation you are describing, would writing off those invoices as bad debt be an option for you? We do have a handy Help Centre article to help with doing this:

    https://support.waveapps.com/hc/en-us/articles/115000031243-Dealing-with-bad-debt-How-to-write-off-an-invoice

  • AlarmManAlarmMan Member Posts: 2

    Hi Myron,

    Thanks for the comment. But its not bad debt., and it would make the figures wrong. I have virtually no bad debt, and it might take 2 or 3 years but I normally get paid eventually. This is an invoice I raised for providing a service, that service was never provided and the customer no longer wants it. Ie Annual Alarm maintenance, but the customer has sold the house. No problem raise a credit note and there is no income or loss. I hope that helps explain one of my use cases.

    I like to think of myself as a nice guy, and tell my customers, if you dont want it any more just dont pay. But if you ask for help afterwards its not at the same rates. Their choice.

    I also provide vpn for ex-pats to get Uk TV in France. Same thing, not paid no service (they tend to pay quickly once cut off), but sometimes they just needed it for a rental, I raise the invoice, not paid, cut them off, no harm, no foul, just an unpaid invoice... (I raise the invoices on the 25th cutting off service on the 1st.).

    I Love Wave otherwise, and its integration with Stripe makes getting paid really easy.

    Cheers,
    Andy

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 173 ✭✭✭

    @AlarmMan

    Looking how you describe your invoicing strategy I'd be inclined to say what you are actually doing is issuing Pro-Forma invoices - a pro-forma is an invitation to accept the goods/services offered at the price stated thereon, the goods/services only been supplied at the point of delivery. This is actually when your income arises, not when you issue a pro-forma. In your situation I'd be inclined to suggest that you've probably been accounting for income based on unpaid pro-forma's, meaning you are paying tax where you shouldn't have done, and VAT before it became due.

    Working within the strictures of Wave I'd actually recommend that your Pro-Forma's are issued using Estimates (you can call it a Pro-Forma when you are creating) - and only when you get paid do you then create an invoice for the work.

  • TJ_in_ZATJ_in_ZA Member Posts: 14

    No facility to create a credit note!

    I'm astonished!

    Credit notes are an absolute fundamental feature of even the most basic accounting systems.

    I see that this discussion has been going on for literally years and still there's no credit note functionality. Crazy.

    It's also essential to be able to provide a Sales Tax Audit Report, something that is missing from Wave.

    Another glaring omission is the ability to have a discount column on invoices to allow for discounts to be applied on a line-by-line basis.

    TJ

  • ChelseaKChelseaK Administrator Posts: 241 admin

    @TJ_in_ZA Thanks for weighing in on the credit note feature request, and, like Barsin mentioned a few comments above, there's no doubt that you have a point!

    As for a Sales Tax Report, we certainly do have that. Head to Reports > Sales Tax Report and you can see all your Tax Amount on Sales and all your Tax Amounts on Purchases.

    Also, we do agree that a discount feature is essential for invoices. Adding a discount functionality is on our product roadmap and this update is on the way! In the meantime, you can add a negative line item on an invoice as a workaround for adding a discount. For example, if you would like to discount the invoice by $10.00, you can add $-10.00 as a line item titled 'Discount' on your invoice. Hope this helps in the meantime, TJ!

  • WaxwingWaxwing Member Posts: 3

    I have to agree, a credit note feature really needs introducing. I run a very simple, small consulting business. A client mistakenly sent me a payment, which I hadn't invoiced them for, and I need to return, so issue a credit note is the right thing to do.

  • AmandaKAmandaK Administrator Posts: 71 admin

    @Waxwing Appreciate you chiming in and sharing how credit notes would be useful for your consulting business! Our product team is constantly monitoring our online community forum and having customers share use cases is super helpful for them.

  • TJ_in_ZATJ_in_ZA Member Posts: 14

    Can anyone explain to me a workaround for the lack of a credit note feature.

    I issued an invoice to a client in a previous financial period, which has only been partially paid do far.

    Now, in the current financial period, I need to pass a credit note against part of the remaining balance of that invoice.

    How on earth do I do that without a proper credit note facility?

    There must be a workaround, even if it involves entering multiple transactions, but I' cant figure out how to do it.

    The value of this free accounting system is rapidly being overtaken by the huge extra amounts of work it creates because of missing basic features.

    If anyone can explain how to solve my problem I'd love to her from you.

    Thanks,

    TJ

  • JamieDJamieD Administrator Posts: 1,091 admin

    Hey @TJ_in_ZA. Although maybe not ideal for you -- but what's most likely the best workaround option for you is what's followed in this article: https://www.cloud-book.co.uk/wave/wave-online-accounting-credit-notes/ -- this article is a workaround from our legacy software, but it essentially works the same in the most recently updated version as well.

    "To post a credit note on Wave, you have to create a new invoice with negative amounts.

    Then to allocate the credit note against the invoice, you need to create a positive income transaction and a negative income transaction in the bank account. Both amounts need to be for the total credit value, so that they offset each other in the bank account and don’t change the bank balance. Then you need to allocate the positive receipt against the invoice, and the negative receipt against the credit note."

    Hope that helps.

  • TJ_in_ZATJ_in_ZA Member Posts: 14

    @JamieD said:
    Hey @TJ_in_ZA. Although maybe not ideal for you -- but what's most likely the best workaround option for you ...

    Hi Jamie,

    Thanks very much for your post and advice.

    Although it's a cumbersome workaround it does seem to work and it will have to do until the Wave developers add a real credit note facility.

    TJ

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