A correction sale, also called a credit note, is used to detail a correction to the amount of the original invoice, indicate returns of goods, and refunds. Discover how to create, convert, link, and reconcile a correction sales invoice.
Create a standalone corrective sale
A standalone correction invoice is a document generated from scratch that's used to correct the amount of an invoice, either in full or only partially.
Go to Sales > Invoices
Open the dropdown next to New invoice and select Correction sale
Create your invoice as explained here.
The amount to be corrected is always entered as positive in the Total field; it will be automatically converted to negative.
If you've received a payment:
Once the invoice is saved, click Add payment in the pop-up window
Enter the correction amount in the Amount field
Click Save or Approve
When reconciling, you'll need to reconcile the negative movement from the bank statement against the payment recorded on the invoice.
Linking a correction sale to its original invoice
This option allows the original invoice to end up marked as paid and the correction invoice as paid as well, in cases where the customer has not paid, provided you haven't previously chosen to convert your invoice.
Create a correction sale using the same customer and product details as the original invoice
Select the original invoice from the list
In the window that opens, click Add payment
Click the magnifying glass icon
Select the correction sale you previously created
Click Confirm
When you reconcile the original invoice, you'll see it already appears as reconciled. If you issued a correction for part of the total amount, only the difference between the amounts will remain to be reconciled.
Converting a sales invoice into a correction invoice
This option is the right one when the customer hasn't paid the invoice, or has only paid it partially.
Select the original invoice from the list
In the modal that opens, click Convert and select Correction sale
Enter the correction value or amount in the Total field
Click Save or Approve
When you reconcile the original invoice, you'll see it already appears as reconciled. If you issued a correction for a partial amount, only the difference between the amounts will remain to be reconciled.
Reconciling a correction sales invoice
Go to Banking > Banking
Select your bank or payment gateway
Click the Go to Reconciliation button
Click the movement you want to reconcile from the bank statement
Use the dropdown menu to filter by Payments or Receipts, as needed
Click Reconcile
Depending on whether the correction sale is linked to its original invoice or not, reconciliation is carried out differently:
Standalone correction sale
Once the correction invoice has been created, you'll need to create the payment so it gets recorded. Reconcile the original invoice against the receipt, and the correction sale against the recorded payment.Linked correction sale
When you go to reconcile the original invoice, you'll see it already appears as reconciled. If you issued a correction for a partial amount, only the difference between the amounts will remain to be reconciled.