diff --git a/content/applications/finance/accounting/customer_invoices/credit_notes.rst b/content/applications/finance/accounting/customer_invoices/credit_notes.rst index edbb87afb..b0dc53cf7 100644 --- a/content/applications/finance/accounting/customer_invoices/credit_notes.rst +++ b/content/applications/finance/accounting/customer_invoices/credit_notes.rst @@ -2,102 +2,117 @@ Credit notes and refunds ======================== -A **credit note**, or **credit memo**, is a document issued -to a customer that notifies them that they have been credited -a certain amount. +A **credit/debit note**, or **credit/debit memo**, is a document issued to a customer that notifies +them that they have been *credited/debited* a certain amount. -There are several reasons that can lead to a credit note, such as: - * a mistake in the invoice - * a return of the goods, or a rejection of the services - * the goods delivered are damaged +Several use cases can lead to a credit note, such as: + + - a mistake in the invoice + - a return of the goods, or a rejection of the services + - the goods delivered are damaged + +Debit notes are less common but are most frequently used to track debts owed by customers or to +vendors because of modifications to confirmed customer invoices or vendor bills. .. note:: - Issuing a credit note is the only legal way to cancel, - refund or modify a validated invoice. Don’t forget to - *register the payment* afterward if you need to send money - back to your customer. + Issuing a credit/debit note is the only legal way to cancel, refund, or modify a validated + invoice. Do not forget to **register the payment** afterward if you need to send money back to + your customer and/or validate the + :doc:`return ` if a storable product is + returned. -Issue a Credit Note +Issue a credit note =================== -You can create a credit note from scratch by going to -:menuselection:`Accounting --> Customers --> Credit Notes`, -and by clicking on *Create*. Filling the Credit Note’s form -works the same way as the Invoice’s form. +You can create a credit note from scratch by going to :menuselection:`Accounting --> Customers --> +Credit Notes`, and by clicking on :guilabel:`Create`. Filling out a credit note form works the same +way as an invoice form. -However, most of the time, credit notes are generated directly -from the invoices they are related to. - -To do so, open the *Customer Invoice*, and click on *Add Credit Note*. - -.. image:: credit_notes/credit_notes01.png - :align: center +However, most of the time, credit notes are generated directly from the related invoices. To do so, +go to :menuselection:`Accounting --> Customers --> Invoices`, open the related **customer invoice**, +and click on :guilabel:`Credit Note`. You can choose between three options: - - Partial Refund - - Full Refund - - Full refund and new draft invoice + + - :guilabel:`Partial Refund` + - :guilabel:`Full Refund` + - :guilabel:`Full refund and new draft invoice` .. note:: - Credit Notes’ numbers start with “R” and are followed by the - number of the document they are related to (e.g., RINV/2019/0004). + A credit note sequence starts with `R` and is followed by the number of the related document + (e.g., RINV/2019/0004 is related to the invoice INV/2019/0004). -Partial Refund +Partial refund -------------- -Odoo creates a draft credit note already prefilled with all the -necessary information from the original invoice. - -This is the option to choose to do a partial refund, or if you -want to modify any detail on the credit note. +When selecting the :guilabel:`Partial Refund` option, Odoo creates a draft credit note already +prefilled with all the necessary information from the original invoice. This is the option to choose +if you wish to do a partial refund or if you want to modify any detail of the credit note. .. note:: - This is the only option available for invoices that are already marked as *Paid*. + This is the only option for invoices marked as *in payment* or *paid*. -Full Refund +Full refund ----------- -Odoo creates a credit note, automatically validates it, and -reconciles the original invoice with it. +When selecting the :guilabel:`Full Refund` option, Odoo creates a credit note, automatically +validates it, and reconciles it with the related invoice. .. image:: credit_notes/credit_notes02.png - :align: center + :alt: Full refund credit note. -This is the option to choose to do a full refund or cancel -a validated invoice. +This is the option to choose for a full refund or to **cancel** a *validated* invoice. Full refund and new draft invoice --------------------------------- -Odoo creates a credit note, automatically validates it, reconciles -the original invoice with it, and open a new draft invoice +When selecting the :guilabel:`Full refund and new draft invoice` option, Odoo creates a credit note, +automatically validates it, reconciles it with the related invoice, and opens a new draft invoice prefilled with the same details from the original invoice. -This is the option to choose to modify the content of a validated invoice. +This is the option to **modify** the content of a *validated* invoice. -Record a Vendor Refund +Issue a debit note +================== + +You can create a debit note from scratch by going to :menuselection:`Accounting --> Customers --> +Invoices` or by clicking on the related invoice you wish to issue a debit note for. On the invoice +form view, click :guilabel:`Cog icon (⚙) --> Debit Note`, fill in the information, and click +:guilabel:`Create Debit Note`. + +Record a vendor refund ====================== -**Vendor Refunds** are recorded the same way you would do with invoices’ credit notes: +**Vendor refunds** are recorded the same way as credit notes: -You can either create a credit note from scratch by going -to :menuselection:`Accounting --> Vendors --> Refund`, and -by clicking on *Create*, or by opening the validated *Vendor Bill*, -and clicking on *Add Credit Note*. +You can either create a credit note from scratch by going to :menuselection:`Accounting --> Vendors +--> Refund`, and by clicking on :guilabel:`Create`; or by opening the related **vendor bill**, and +clicking on :guilabel:`Credit Note`. -Journal Entries +Record a debit note +=================== + +**Debit notes** from vendors are recorded in a similar way to how they are issued to customers: + +Go to :menuselection:`Accounting --> Vendors --> Bills`, open the related bill you wish to record a +debit note for, and click :guilabel:`Cog icon (⚙) --> Debit Note`. Fill in the information, and click +:guilabel:`Create Debit Note`. + +Journal entries =============== -Issuing a credit note from an invoice creates a **reverse entry** -that zeroes out the journal items generated by the original invoice. +Issuing a credit/debit note from an invoice/bill creates a **reverse entry** that zeroes out the +journal items generated by the original invoice. -Here is an example of an invoice’s journal entry: -.. image:: credit_notes/credit_notes03.png - :align: center +.. example:: + The journal invoice of an entry: -And here is the credit note’s journal entry generated to reverse -the original invoice above: + .. image:: credit_notes/credit_notes03.png + :alt: Invoice journal entry. -.. image:: credit_notes/credit_notes04.png - :align: center + And here is the credit note’s journal entry generated to reverse + the original invoice above: + + .. image:: credit_notes/credit_notes04.png + :alt: Credit note journal entry reverses the invoice journal entry. diff --git a/content/applications/finance/accounting/customer_invoices/credit_notes/credit_notes01.png b/content/applications/finance/accounting/customer_invoices/credit_notes/credit_notes01.png deleted file mode 100644 index c8c0f5b18..000000000 Binary files a/content/applications/finance/accounting/customer_invoices/credit_notes/credit_notes01.png and /dev/null differ