This article provides instructions on sales credit invoices when using the renewed sales invoice view in Finago Procountor.
A credit note reverses all or part of a sales invoice. A credit note is its own sales invoice, and its rows are negative. In the renewed view, creating, approving, and identifying a credit note take place in the same place as the other invoice actions. The help article for the traditional view is Sales - Credit note (traditional views).
Note! The renewed credit note view is available only in Finland and only in the renewed Procountor views.
Credit note or invalidation?
Invalidation removes the accounting entries of the invoice. You can use it when the invoice is unfinished, or approved but not yet sent.
Credit note is created when the invoice has already been sent or paid and can no longer be invalidated.
Creating a credit note
Open the sales invoice you want to credit from the Sales invoice hub view. Select Functions > Create a credit note.
The function creates a credit invoice for the sales invoice. The invoice rows on the credit invoice are identical to those on the original, except that their sums are negative.
The option is not available if:
the original invoice is unfinished or invalidated
the invoice is itself a credit note
you don't have the right to create sales invoices
Confirm in the dialog by selecting Continue.
Select Cancel to return to the invoice without creating a credit note.
2. The new credit note opens in Unfinished status, so you can edit it. For example, if the credit note doesn't cover the whole invoice, edit the rows so they credit the correct products.
3. After making the necessary changes, you can still review the credit invoice by selecting Preview and approve. When the credit note is ready, select Approve. A dialog opens with:
a short description and a link to the Procountor help
the options listed below. Options that don't apply to the invoice are hidden, not disabled.
the payment date (defaults to the due date)
the payment method (default in credit note)
Options:
Allocate to original invoice (selected by default): Marks the credit note as paid and adds a payment entry equal to the credit note amount to the invoice being credited. The outstanding sum of the original invoice is updated. The invoice status in Procountor changes to Paid elsewhere. This option was previously named ”Mark as paid elsewhere”.
Create purchase invoice: Use this when the original invoice has already been paid and the money is returned to the customer. Procountor creates a purchase invoice that you can pay to the customer. This option is shown only when the original invoice is paid.
Send credit note: Sends the credit note to the customer. This option is shown only for sending channels you are allowed to use.
4. Select Continue when you have checked the details. If the payment date is in a closed financial period, an error message appears, the dialog stays open, and nothing is saved.
Note! If the credit note total is positive, the dialog does not open, and the credit note is approved directly.
Typical situations
The original invoice has not been paid and it is credited in full or in part - Allocate the original invoice
The original invoice has been paid and the money is returned to the customer - Create a purchase invoice and pay it to the customer
The customer deduct the credit from the next payment - Allocate to original invoice and add a payment transaction equal to the credit amount
The credit note is sent to the customer - Select send credit note
Other things to note
You cannot create a credit note from a credit note.
Editing a credit note updates its totals. It does not change the original invoice until you approve it.
If the credit note total becomes positive, you can approve it without the dialog.
Recognizing credit notes and original invoices
Sales invoice hub: A credited invoice and a credit note are marked in the sales invoice list.
Invoice view: A blue banner appears at the top of the invoice:
Credited invoice: The banner says the invoice has been credited and lists its credit note numbers.
Credit note: The banner says the invoice is a credit note and shows the original invoice number. If the original invoice has several credit notes, the banner also lists the others.
Invoice numbers in the banner are links. Selecting a link opens the invoice in the same tab. To open it in a new tab, right-click the link and select Open link in new tab, or Ctrl/Cmd-click it.
Note! If you have rights only to your own invoices, you see the invoice number of a linked invoice that belongs to someone else, but it is not a link. Selecting it shows the message You don't have permission to see that invoice, and you stay on the same page.
A credit note that was created outside Procountor, for example through the API, by import, or entered manually as a negative invoice, has no link. No banner or marker appears for it.
Different credit note situations
The invoice cannot be invalidated and is not paid
When the invoice can no longer be invalidated, you must create a credit note. Follow the Creating a credit note instructions up to step 2. In step 3, select the following options:
Allocate to original invoice marks both the credit note and the original invoice as paid, with the credit note amount.
Select Send credit note if you have agreed with the customer that the credit note will be sent.
By default, the sales invoice was posted to 1700 Accounts receivable and 3000 Sales. The credit note is posted correspondingly to 3000 Sales and 1700 Accounts receivable. This entry also corrects the sales VAT if the invoice included VAT.
The invoice is paid, but the money will not be returned
You have agreed with the customer that an incorrectly paid invoice will be credited, and the customer will deduct the overpayment from its next payment. Follow the Creating a credit note instructions up to step 2. In step 3, select the following:
Select Send credit note if you have agreed with the customer that the credit note will be sent.
Mark the credit note as Paid elsewhere when the credit is made against the sales invoice. For example, if the credit is made against the next sales invoice, mark the credit note as Paid elsewhere on the same date as the Paid elsewhere mark on the next sales invoice.
You can set the Paid elsewhere mark in the Payments view of the sales invoice (Go to > Payments).
Select Add payment transaction and enter the sum of the credit note in the Amount paid field.
If the sales invoice has a balance left, and the credit note does not cover the whole sales invoice, its status becomes Partly paid. The sales invoice then waits for another payment transaction.
Mark the credit note as Paid elsewhere as a whole.
The entries are as follows:
The first sales invoice was entered into the accounts as 1700 Accounts receivable and 3000 Sales.
After a payment was allocated to the invoice, an accounting entry was created as 1910 Bank account and 1700 Accounts receivable.
The credit note has been entered as 3000 Sales and 1700 Accounts receivable.
The new sales invoice has been entered as 1700 Accounts receivable and 3000 Sales.
A payment equal to the invoice sum minus the credit note sum has been allocated to the invoice and entered on the bank statement as 1910 Bank account and 1990 Payments in transit and balancing difference, and as a reference payment as 1990 Payments in transit and balancing difference and 1700 Accounts receivable.
The end result is that the balances of 1910 Bank account and 3000 Sales have increased by the amount of one sales invoice.
The invoice has been paid and the money will be returned
You have agreed with the customer to credit the incorrectly paid invoice and return the money. First create the credit note by following the Creating a credit note instructions up to step 2. In step 3, select the following:
Allocate to original invoice marks both the credit note and the original invoice as paid, with the credit note amount.
Select Send credit note if you have agreed with the customer that the credit note will be sent.
Create purchase invoice creates a purchase invoice for returning the payment. The purchase invoice has the same rows as the credit note, but positive, and it does not include VAT.
Create a purchase invoice with the same amount as the credit note and pay the money back to the customer. (This can also be used for a partial credit.)
The entries are as follows:
The purchase invoice is posted to 1700 Accounts receivable and 2880 Payment transactions account. For such purchase invoices, create a product in the purchase product register with a default account of 1700 and VAT 0%. When you use this product, the posting and VAT are correct automatically, and the product stands out from regular purchases in the reports.
The purchase invoice is paid to the customer and is recorded from the bank statement as paid, as 2880 Payment transactions account and 1910 Bank account.
In the accounts, the original sales invoice was entered as 1700 Accounts receivable and 3000 Sales.
After a payment was allocated to the invoice, an accounting entry was created as 1910 Bank account and 1700 Accounts receivable.
The credit note has been entered as 3000 Sales and 1700 Accounts receivable.
As a result of these entries, no account balance has changed.
The invoice has been paid twice, and the money will be returned
The customer has paid the same invoice twice, and you have agreed with the customer that the money will be returned.
Create a purchase invoice for the amount of the overpayment, with no VAT.
Pay the purchase invoice to the customer.
The original sales invoice remains in Partly paid status.
Go to the original sales invoice and open its Payments view.
Select Add payment transaction and enter the overpayment as a negative amount in the Amount paid field, so that the total of the invoice equals its correct final sum. (The system suggests the correct amount in the Amount paid field automatically.)
Select Save.
The original invoice should be in Paid elsewhere status after the payment transaction has been saved.
The entries are as follows:
The purchase invoice is posted to 1700 Accounts receivable and 2880 Payment transactions account.
In the accounts, the original sales invoice was entered as 1700 Accounts receivable and 3000 Sales.
When a payment was allocated to the invoice, a bank statement entry was created as 1910 Bank account and 1990 Payments in transit and balancing difference, and a reference payment entry as 1990 Payments in transit and balancing difference and 1700 Accounts receivable.
The new payment created the bank statement entry as 1910 Bank account and 1990 Payments in transit and balancing difference, and the reference payment entry as 1990 Payments in transit and balancing difference and 1700 Accounts receivable.
The purchase invoice has been entered as 1700 Accounts receivable and 2880 Payment transactions account. The payment has been entered as 2880 Payment transactions account and 1910 Bank account.
As a result of these entries, the balances of 1910 Bank account and 3000 Sales have increased by the amount of one sales invoice.