Credit Note

jason1234jason1234 Member Posts: 37

As mentioned by some members, I hope Wave can implement a Credit Note feature. This is a very basic and important function for accounting and auditing purposes. Work around it just doesn't cut it. You need to change the title of the document to Credit Note and etc. Please, Wave?

edited August 29, 2018 in Sales & Invoicing
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Comments

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi @jason1234.

    Can you tell me a bit more about how you use credit notes in the context of your business? The more insight you can give us on how this feature would make your workflow easier, the better we'll be able to assess the value of a feature like this to other Wavers!

  • jason1234jason1234 Member Posts: 37

    @Alexia Thanks for your reply.

    Well, the ones I generate now from Quickbooks Online and Xero is formatted like an Invoice.

    I generate this when an invoice is generated, months later, the client doesn't pay (for whatever reason).

    Reason why I do not want to just do a workaround is because this piece of document (Credit note) will be submitted to my GST tax person to reimburse the money I collected for them (GST tax person).

    What happens in Quickbooks Online is that when I generate a CN, it matches with the invoice (either automatically or manually selected) and marks it off as "Paid".

    Hope this helps.

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @jason1234.

    Wouldn't you treat that as bad debt, rather than as a credit note? We do have an article on the Help Center on writing off invoices. You can find it here.

    Hopefully, that helps out!

  • jason1234jason1234 Member Posts: 37

    @Alexia

    In my given scenario, yes, it is bad debt but that's just one instance. More importantly, like I mentioned above, I need to generate a document in PDF (or if I can print it out) to be submitted to the GST tax man.

  • MODMOD Member Posts: 2

    Hi there. Would also like to be able to generate a credit note in Wave. One client has paid and I need to refund some of the money due to early payment ( they overpaid) and have been asked to issue credit note when I refund. Many thanks

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi both!

    @jason1234 if you are looking for how to apply an overpayment to a new invoice, we do have a process for that. You can find it here. It might not be exactly what you're looking for, but it might still help.

    @MOD You can just handle that by making an invoice with a negative price (you can call that item "Credit Note"). Mark it as paid once you've given the money back to your client. All of your numbers will match up!

  • jason1234jason1234 Member Posts: 37

    @Alexia Thanks for all the replies.

    With regards to this, I think a document generated for them with the title Credit Note is the thing we are all asking for. I'm pretty sure there are a lot of work arounds but for the sake of formality and standard procedures in accounting, there should be a credit note to be received by the client. This is required when auditing too.

  • BereniceBerenice Member Posts: 2

    Hi Alexia, my company requires a Credit Note too, we can't issue "Negative Invoices" as that is not acceptable when we generate our Annual Report for government tax filing (or for audit purposes).

  • BereniceBerenice Member Posts: 2

    @Berenice said:
    Hi Alexia, my company requires a Credit Note too, we can't issue "Negative Invoices" as that is not acceptable when we generate our Annual Report for government tax filing (or for audit purposes).

    My current workaround is to manually edit the "Negative Invoice" issued in a pdf editor to become a Credit Note, but i don't think thats sustainable in the long run.

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @Berenice.

    You could make a secondary business and use it just to have a template for Credit notes. You would still have to account for it with a journal entry in your main business, but you can use a customized invoice from an alternate business to create the actual document.

    Here's how to customize your invoices.

  • jason1234jason1234 Member Posts: 37

    @Alexia cc @Berenice

    I thought of that but it wont be ideal if the Credit Note still says invoice in these fields, amount due and there's a due date.

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @jason1234.

    It isn't a perfect solution, as our invoices are not completely editable, but it does the trick for now, for a few of our users. It is, however, very much a workaround.

  • jason1234jason1234 Member Posts: 37

    Hi @Alexia

    Thanks. My workaround is create a Credit note using Excel. LOL

    My accountant and auditor wasn't too happy looking at the details on that "workaround credit note" lol

  • jason1234jason1234 Member Posts: 37

    So, now that I have to create a credit note, I realised that the inability to create a credit note document is one thing. The other issue is that the workaround won't deduct the amount from the generated invoice, which in turns affect your P&L. LOL @Alexia I think we need this feature. hehe

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @jason1234.

    You mean the workaround for overpayment? Once you assign the overpayment to your next invoice, it will be recorded as an invoice payment.

    I can't make any promises, but I'll make sure to forward your feedback.

  • ChristineChristine Member Posts: 5

    Hi @Alexia ,

    We really need Credit Note feature. Appreciate if you can add this feature. Thank you.

  • SigmaSigma Member Posts: 1

    Hi - I too need this feature.
    Reports and dashboard status do not reflect correctly due to Neg values ignored (for bad debt or neg invoice used as credit note)

    To be honest, not sure why it is so hard to get a proper 'credit note' facility added to wave?

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @Sigma.

    Negative values on invoices wouldn't be considered expenses, but negative income, so that's how they would appear on your reports.

    As for handling bad debt, we do have a guide on the Help Center to help out. You can find it here.

  • JulianJulian Member Posts: 2

    @Alexia I would also appreciate a Credit Note Feature.

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @Julian.

    Can you tell me more about how you use credit notes in the context of your business? Do you find you need them very often? How do you handle situations that require credit notes right now?

  • AmandaAmanda Member Posts: 1

    Hi @Alexia

    I have just started using Wave and also need a feature for issuing credit notes. Just stumbled on this thread when I was looking for a solution. We issue invoices for annual membership subscriptions. Most of these are paid, but there is usually one or two where people decide they don't wish to renew their subscription.

    For accounting purposes, issuing a credit note is really the only way to go about this and having to issue a second invoice with negative amounts isn't suitable.

    It sounds like a credit note feature would be a big help for a lot of Wave users - would really appreciate it if you could make the addition of a credit note feature a high priority :smile:

    Thanks!

  • Themba75Themba75 Member Posts: 3

    @Alexia i just been asked for credit note and i issued or updated to the invoice to R0.00 and the client accountant said i just created a fictions invoice. i do support a call for a credit note feature as a need more than a luxury.

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Thank you both, @Amanda and @Themba75, for adding your voices to this discussion.

    I can't guarantee that this feature will be added to Wave, but know that feedback from our users has a significant impact on what we choose to build next, so thank you for taking the time to share yours.

  • ChristineChristine Member Posts: 5

    Please add the Credit Note feature as soon as possible. We really need it.
    Thanks a lot!

  • tutotoonstutotoons Member Posts: 2

    I also ask personally, please add Credit Note feature. I'm actually very surprised that during 2 years I'm using WaveApps you haven't done it already.
    If I need to cancel an invoice that has been raised 6 months ago (because it turns out amount was wrong, or the deal changed, or etc.) I cannot just delete it as it has been already submitted to Tax Authorities. I have to issue a Credit Note (which is basically a negative invoice) except it has to say "Credit Note" instead of "Invoice". My accounting firm in UK does not accept anything else. So I guess it is a common practice for crediting and canceling invoices.

    edited August 29, 2018
  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @Christine and @tutotoons. Thank you for your feedback.

    If you're looking to write off an invoice, we have a guide that will walk you through the steps to do so in our Help Center. You can find it here It's not a perfect solution, but it might help out in the future.

    @tutotoons, in your situation, you could create a secondary business and make a credit note as an invoice there, and then change the "Invoice" header to say "Credit Note" instead on the Invoice Customization page. This way, the changes won't affect your actual business' invoices and will give you a document issue. You can then enter it again as a negative invoice to your real business so that your numbers match up. This is very much a workaround, and it won't be perfect (there are instances of the word "invoice" that can't be removed), but it might be good enough for now, in the absence of another option.

  • tutotoonstutotoons Member Posts: 2

    Thanks @alexia, this will work for now, however it really feels like your team should consider adding this feature into a main system.

    @Alexia said:
    Hi, @Christine and @tutotoons. Thank you for your feedback.

    If you're looking to write off an invoice, we have a guide that will walk you through the steps to do so in our Help Center. You can find it here It's not a perfect solution, but it might help out in the future.

    @tutotoons, in your situation, you could create a secondary business and make a credit note as an invoice there, and then change the "Invoice" header to say "Credit Note" instead on the Invoice Customization page. This way, the changes won't affect your actual business' invoices and will give you a document issue. You can then enter it again as a negative invoice to your real business so that your numbers match up. This is very much a workaround, and it won't be perfect (there are instances of the word "invoice" that can't be removed), but it might be good enough for now, in the absence of another option.

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @tutotoons,

    I understand where you're coming from and while I can't make any promises, I can make sure your comments are seen by the right people on my end. Thank you for taking the time to share your feedback.

  • JarnoJarno Member Posts: 1

    One more vote for Credit Notes. Lack of this single feature is about to push me to Xero.

  • ConnieConnie Member Posts: 4

    I don't have a problem creating a negative invoice as a credit note. However, how do I apply this to the invoice it refers to? Right now I have an outstanding (unpaid) invoice amount and an outstanding invoice with a credit balance. How do I apply the credit note to the original invoice to get them off the dashboard?

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