Creating a Credit Note

In this article:

• Creating a Partial Credit Note
• Creating a Full Credit Note

When you need to correct an error in an invoice, a best accounting practice is to use a credit note. Credit notes allow you to adjust or reduce the amount billed on an invoice, often due to an overcharge, billing error, or service adjustment.

When issuing a credit note, you can either create a partial credit (which allows you to identify which fees and disbursements on an invoice you want to credit), or create a full credit (which allows you to credit all fees and disbursements on an invoice and remove the WIP from the invoice so it can be rebilled).

Creating a Partial Credit Note

To create a partial credit:

1. In Actionstep, view the matter with the invoice you need to credit. (See Editing a Matter for details.)
2. Click the Billing menu icon. The Billing page appears.
3. Click Invoices on the list of options on the left. A list of invoices appears.
4. Click the invoice number for the invoice you want to credit. The Sales Invoice window appears.
5. Click the More link along the bottom of the window and choose Create partial credit.
   The Create Credit window appears.
   
6. Provide the following information:
   • Credit Date: Enter the date the credit is to be created for this invoice. Please note that this is not the date that it will be applied. That date will be assigned when you apply the credit note.
   • Credit Number: Review the credit note number (which always includes a CR prefix).
   • Quick-code: Click this option to apply or create a quick code to classify a recurring transaction. For example, if you are using credit notes to write off outstanding debt due to having an integration, you can create a quick-code called CR - Outstanding Debt. If you create a new quick code, make sure you select Client / Customer Receipts so that it will appear as a credit note quick-code.)
   • Reason for credit: Enter your reason for giving the credit.
   • Bill Template: Click the drop-down list and choose the credit note template you want to use for sending the invoice. Your credit note can use the same template as your invoices or it can be customized.
   • Sub total: Review the subtotal amount for the invoice.
   • GST/VAT/Tax: Review the tax amount.
   • Total amount to the credit: Review the total amount to be applied in the credit note.
   • Fees to credit and Expenses to credit: These fields show the details of the fees that are to be credited and how this will affect the fee allocation. For example, you may be crediting part of the invoice; however, would like to attribute this credit note to another user who is working on the file. In this case, you can apportion the credit note here as needed. Enter the Amount.
     NOTE:  Note the credit invoice number (which is displayed in the window title). You will need this number when you apply the credit later. 
7. Click Save to save your changes and create the credit.

Once you create a partial credit note, you must apply it. See Applying a Credit Note for details.

Creating a Full Credit Note

When you create a full credit note, you can credit all fees and charges on an invoice and remove the WIP from the invoice so it can be re-billed. For example, if a fee earner recorded a total $1,000 of time on an invoice, after the credit they have a total of $1,000 of time to invoiced again.

Before you begin:

• Enable this feature by toggling Admin > General Settings > Feature Preview > Credit notes return WIP to the matter to on.

To create a full credit:

1. In Actionstep, view the matter with the invoice you need to credit. (See Editing a Matter for details.)
2. Click the Billing menu icon. The Billing page appears.
3. Click Invoices on the list of options on the left. A list of invoices appears.
4. Click the invoice number for the invoice you want to credit. The Sales Invoice window appears.
5. Click the More link along the bottom of the window and choose Create full credit.
   The Full Credit Invoice window appears.
6. Review the fees, disbursements, and taxes you are crediting and enter a Reason for full credit.
   
7. Click Create full credit. The credit note is created and any WIP and/or disbursements that were part of the original invoice will be reinstated to the matter so they can be adjusted and re-invoiced again if you choose to do so.

Once you create a full credit note, you must apply it. See Applying a Credit Note for details.