Chapter: 4 - Financial management aspects of vendors and customers with Odoo Accounting

Credit Note Management on the Customer Invoices

You might have an insight on the aspects of credit note operations that will help you to refund the invoices amounts in the last section. As the chances of having to define the credit note operations are high in a real-time business environment the Odoo has a dedicated menu that supports the management of all the credit note operations. In the Credit Notes menu which can be accessed through the Customer tab, all the Credit Notes will be defined with the Number, Customer details, Invoice Date, Due Date, Next Scheduled activity, Tax Excluded, Total, Status, and the Payment Status will be described. There are also default as well as custom Filter and Group by options that can be defined to retrieve the required Credit Notes from the menu.

Credit Note Management on the Customer Invoices

You will also have the provision to edit the Credit Notes as well as create new ones by selecting the Create option. In the Creation menu, the Credit Note number will be defined and you can see that the number starts with the RINV label which indicates the reverse invoice operation. Whereas the invoice number will be defined as INV at the beginning of the number. The Customer details along with the Payment Reference details can be defined. Furthermore, the Invoice Date, Due Date, Journal, and Electronic Invoicing details will be depicted concerning the Credit Note.

Additionally, the Invoice Lines can be defined by selecting the Add a line option. Moreover, you can add a section to the invoice by selecting the Add a section option along with there is a provision to add a note by selecting the Add an available note option.

Credit Note Management on the Customer Invoices

In the Journal Items the Account details along with the Label, Analytic Tags, Debit, Credit as well as the Tax Grid details will be defined. Once we add the product to the reverse invoice itself, the Journals items tab will be filled with the accounts affected. During this process, Income Account and Tax Account are debited and the Account Receivable is credited. This means while reversing Invoice the income is decreasing and thus it is debited and account receivable is of nature 'Asset' decreases thus credited.

Credit Note Management on the Customer Invoices

In the Other Info tab, the Invoice, as well as Accounting details, can be defined. The Invoice details such as the Customer Reference, Salesperson details, Recipient Bank, and the Payment QR- code can be defined. The Accounting details such as the Incoterms, Fiscal Position, Intrastat Country, Cash rounding Method, Post Automatically and To Check can be defined based on the need.

Credit Note Management on the Customer Invoices

A reverse invoice should be sent back to the customer, the preview of the reverse invoice for the Credit Note can be viewed by selecting the Preview option available in the respective Credit Note menu. The following screenshots depict the reverse invoice which is being defined to be sent to the customer. Here all the information will be defined just as it has been provided in the Credit note which has been provided by you.

Credit Note Management on the Customer Invoices

If the descriptions on the Credit Notes are correct they can be sent to the customer via post or email. The Credit Notes as well the reverse payment can be generated towards the customer. Once the payment has been generated you should Register Payment towards the customer payments in the respective journals of the financial operations in the respective platform. Upon selecting the Register Payment option, you will be depicted with the following pop-up window where the payment register details can be defined. The aspects such as Journals, Payment Method which can be selected as Manual or Checks. The Recipient Bank Account details can also be provided. Furthermore, the Amount and the currency in which the payment should be provided as well as the Payment Date and the Memo can also be defined. Once the details are being described you can select the Create Payment option that is available.

Credit Note Management on the Customer Invoices

Once the Payment is registered the respective Credit Note will depict the indication of payment with a label as In Payment if the payment is yet to be approved or is being done. In case the payment is completed the label will depict it as Paid.

Credit Note Management on the Customer Invoices

As of now you will be having and undressing the Credit Notes operations and how it functions and the management aspects regarding it. In the next section, we will be discussing the aspect of Customer Receipts management in the Odoo Accounting module.

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