How is a credit note handled?

In this article, the handling of the credit notes inside CaFE is explained.

The handling is different among Xero, FreeAgent, or QuickBooks Online users. Please refer to the related section.

 

Table of Contents

• For Xero users
  • In Cash Short Predictor
  • In Profit and Loss and Cash Flow in Full Budget, or Sales Plan in Basic Budget
  • In Cash Flow Plan in Basic Budget or Simple Budget
  • Upon creation of budget
• For FreeAgent users
  • In Cash Short Predictor
  • In Profit and Loss and Cash Flow in Full Budget, or Sales Plan in Basic Budget
  • In Cash Flow Plan in Basic Budget or Simple Budget
  • Upon creation of budget
• For QuickBooks online users
  • In Cash Short Predictor

 

For Xero users

As a sample, an invoice is issued in 1.2.22 with the due date of 28.2.22, and a credit note is issued against the invoice on 3.2.22 (supposed to be today). The credit notes against bills are handled in the same manner.

This transaction is shown as below:

In Cash Short Predictor:

 

In Profit and Loss and Cash Flow in Full Budget, or Sales Plan in Basic Budget:

Note that the linked credit note shows up at the issue timing of the invoice, even when the credit note is issued in the next month or later.

 

In Cash Flow Plan in Basic Budget or Simple Budget:

Note that in the Cash Flow Plan, the net amount is simply shown.

Upon creation of budget:

In Sales Plan and Simple Budget, the past credit amount is ignored. That means if an invoice was issued in 1.1.2022 with 100 GBP +VAT with a credit note of 50GBP + VAT,  the budget for 1.1.2023 is set to 100 GBP + VAT.

 

For FreeAgent users

As a sample, an invoice is issued in 1.2.22 with the due date of 1.3.22, and a credit note is issued against the invoice on 3.2.22 (supposed to be today).

As a credit note cannot be linked to a bill inside FreeAgent, a credit note in bills is handled in the same manner as a normal bill.

 

The transaction is shown as below:

In Cash Short Predictor:

 

In Profit and Loss and Cash Flow in Full Budget, or Sales Plan in Basic Budget:

Note that the linked credit note shows up at the issue timing of the invoice, even when the credit note is issued in the next month or later.

 

In Cash Flow Plan in Basic Budget or Simple Budget:

Note that in the Cash Flow Plan, the net amount is simply shown.

Upon creation of budget:

In Sales Plan and Simple Budget, the past credit amount is ignored. That means if an invoice was issued in 1.1.2022 with 100 GBP +VAT with a credit note of 50GBP + VAT,  the budget for 1.1.2023 is set to 100 GBP + VAT.

 

 

For QuickBooks Online users

As a sample, an invoice is issued in 1.2.22 with the due date of 1.3.22, and a credit note is issued against the invoice on 3.2.22 (supposed to be today).

 

The transaction is shown as below:

In Cash Short Predictor:

The net cash flow of 60GBP is shown under the "Cash Flow" column. The original amount before the credit note is shown in the detail line.