Raise a credit or debit note

Credit and debit notes let you compensate customers for an inconvenience or correct invoice errors.

Raise a credit note when you want to compensate a customer and decrease their account balance, that is, decrease the amount the customer owes. Raise a debit note if you have undercharged a customer and need to increase their account balance, that is, increase the amount the customer owes.

To ensure that you assign a credit or debit note to the correct sales report category, check your company's business processes before you raise an adjustment.

Tip: To ensure that your reports are accurate, never use a debit note to bill a customer for goods or services. Use a debit note only to correct errors.

This task explains how to raise a credit or debit note.

  1. Search for the account against which you want to raise the adjustment, then double-click the account entry in the search results.
    The Account summary page is displayed.
  2. On the Account menu, click New Adjustment....
    A New Adjustment entry is added under Draft Transactions on the account sidebar. The adjustment page is displayed.
  3. Select the adjustment type from the Adjustments drop-down.
  4. Complete the following fields:
    • From date—Specifies the date that Smile applies the adjustment to the account.
    • Amount—Specifies the adjustment amount, including GST.
    • GST—Specifies the GST included in the adjustment amount. Click Calculate to automatically complete this field.
    • Sales report category—Specifies the sales report category in which the adjustment is included.
    • Comment—(Optional) Specifies the reason you raised the adjustment. The comment appears in the Account History but does not appear on any customer statements.
  5. Click Create.
    Smile raises the adjustment against the account and, if the account has open transactions, opens the Allocation window.
  6. Do one of the following:
    • Click Allocate next to an open transaction to allocate the adjustment to that transaction, then specify the amount to allocate.
    • Click Auto Allocate to allocate the adjustment to the oldest open transaction.
    • Click Don't Allocate to skip this step.
    Smile performs the action and returns to the Draft Transactions page.