In ContactsLaw, the credit note activity allows you to issue a client with credit. This may arise as a result of accidental over-billing, a dispute or the need to issue a refund after payment have already been received. It is a variant of the billing activity, and can thus be thought of as a negative bill.

 

 

All amounts entered build a negative figure (i.e. a credit to the Debtors controlled account). The items displayed in the itemisation section represent what has already been billed on the file; you can only credit back previously-billed items. Additionally, it is only possible to credit timed fees and fixed charges; disbursements must be refunded separately.

 

When finalising a credit note, all relevant general ledger transactions are posted automatically. These will reduce or negate the debtors balance on the file, as well as posting allocations where necessary. The credit note will not modify any existing allocation of funds to the file, so you may also need to post a debtor adjustment if you are not going to issue a refund.

Billing periods opened by upfront bills must be closed before a credit note can be issued. As time/charges are allocated to products by the finalising bill, the products and amounts which can be credited are determined by the finalising bill. The finalising bill must, therefore, include any product(s) for which credit will be issued.