Credit note vs refund

[unstoppable]

Hi there,

Scenario: I sent goods to the customer on proforma payment. Invoice was generated before sending the goods to the customer. Upon delivery, one of the items was received broken and the customer has asked for a credit note.

Usually I just give a partial refund and change the invoice accordingly or just adjust the refundable amount in customer's next order. What do I need to do differently if I issue a credit note? Do I need to change the existing invoice and what do I mention in the next invoice where the credit note will be used?

Thanks.

 

[g]

You don't need to amend an existing invoice, simply consider the issued proforma as a normal invoice and issue an appropriate credit note.

Be sure to inform the customer what you're doing, and update your own records accordingly.

 

[unstoppable]

Hi. Got it. So when the customer places their next order and wants to use the credit note for partial payment, do I create the new invoice as normal and just specify credit note as the partial payment method on that invoice?

 

[Scalloway]

Yes.

 

[g]

Hi. Got it. So when the customer places their next order and wants to use the credit note for partial payment, do I create the new invoice as normal and just specify credit note as the partial payment method on that invoice?

Sounds about right. (But my thinking/reasoning/ability to communicate can be notoriously sloppy.)

 

[unstoppable]

Thanks.