Work with credit invoices

A credit invoice is an invoice with a negative amount. It is used against one or more debit invoices of the same client and debtor, so that the amounts net each other out. This page covers how the two are linked, how the credit invoice is financed and booked, and the cases that most often need a manual step.

Link a credit invoice to a debit invoice

You can link from either side, and from the invoice list when you have several invoices.

• On one invoice. Open the invoice and choose Link to credit invoice from the Actions menu of a debit invoice, or Link to debit invoice on a credit invoice.
• On several invoices. In Registry > Invoices, tick invoices of one type and currency, for example the credit invoices, and press Link Invoices (the link icon). The button is not shown when the ticked invoices mix credit and debit invoices or currencies. Choose the invoices to link to in the dialog.

1. In the dialog, choose how to identify the invoice you link to, Invoice Id or Invoice no., and enter it.

2. Check the amount. The dialog suggests the largest amount that fits, and you can lower it. Press Add row to link to more invoices in the same step.

3. In the list dialog you can tick Add note to leave a note on the linked invoices. Press Confirm.

When you link on one invoice, the link is refused unless:

• The invoice you start from is activated, and the invoice you link to is not in the status Created.
• Both invoices belong to the same client and the same debtor, and are in the same currency.
• One is a credit invoice and the other is not. A credit invoice cannot be linked to another credit invoice.
• The amount is more than zero, no larger than the capital balance of the invoice you link to, and the total of all rows is no larger than the available balance of the invoice you start from. Only the capital is credited, not fees or interest.
• No open change request exists for a payment return on one of the credit invoices.

Link Invoices in Registry > Invoices checks less than that. It refuses the link when one side is not made up of credit invoices only and the other side of debit invoices only, and when a credit invoice has an open change request for a payment return. It does not check client, debtor or status, and an amount larger than what is available is reduced to the available amount instead of being refused. When you link several invoices, check yourself that they are activated and belong to the same client and the same debtor, and are in the same currency. Use the single invoice route if you are unsure.

After the link, the credit invoice shows the Debit invoices tab and the debit invoice shows the Credit invoices tab. Both invoices get an event for the link under Debtor Financial Events. To undo a link, see Unlink Credit Invoice.

The product of a credit invoice

A credit invoice has its own product, chosen separately from the invoice it credits. Linking does not change that in every case:

• Linking a service credit invoice to a financed debit invoice finances the credit invoice at the time of the link. The credit invoice then follows the debit invoice into financing.
• The reverse is not true. A credit invoice that is financed stays financed when you link it to a service debit invoice. A credit for a service invoice is not automatically a service credit.
• Where it is booked. A credit invoice that is bought (financed) is booked on the client’s factoring account, one that stays a service is booked on the service account. A bought credit can therefore make the factoring account negative, while the offsetting entry is made on the service account.

Finance expired credit invoices so they offset the debit invoices

Credit invoices that were imported from an ERP and have already expired can be put right in a few steps.

1. Check that the debit invoices are activated and financed.

2. Correct the expiry date of the credit invoice. In Registry > Invoices, select the credit invoice and use Edit expiry date. This changes the expiry date in Quiddly only, nothing is changed in the ERP.

3. Link the credit invoice to its debit invoice with Link Invoices, see above. Because the debit invoice is financed, the link finances the credit invoice and offsets it against the debit invoice.

4. If the credit invoice is a service invoice that was not financed by the link, use Finance on it, from the Actions menu of the invoice or the icon in the invoice list.

Credit invoices and payments

A credit invoice can be used up by a payment, which is how it settles a debit invoice. You see this as a payment on the credit invoice, and the Debit invoices tab shows which debit invoices it was used against. It is not a payout: the debit and the credit invoice net out. On the debit invoice, the use of the credit shows as a Payment event with the credit invoice as its source.

Matching payments and unplaced payments to credit invoices is part of the normal payment handling. There is no setting that turns it off for credit invoices.

A closed credit invoice cannot be reopened

A credit invoice that has closed, for example because it was used up automatically, cannot be reopened. Open the connected debit invoice, find the financial event for the credit under Debtor Financial Events and reverse it with Unlink credit invoice. The credit invoice then has its balance back. See Invoice Actions.

To pay a credit back to the debtor, use Return on the credit invoice, or Refund on the debit invoice, see Invoice Actions.

Note

The credit invoice and the debit invoice can be different products, and the financing of each is shown in the Financed and Service columns of the financial events. If a client account looks wrong after a credit, check which of the two invoices was financed at the time.