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New in Zoho Invoice: Credit Notes

Zoho Invoice | August 10, 2010 | 2 min read

An invoicing application which offers you the option to send out credit notes to your customers …. Sounds interesting? Read on.

By popular demand from our customers, introducing the Credit Note feature in Zoho Invoice. You can now send out credit notes to your customers from your Zoho Invoice account. Retaining a documentation of every transaction is the sign of a good accounting practice. So never let that customer credit go unaccounted for.

You ask, “When can I issue a credit note?”

The math behind a credit note is simple. You issue a credit note every time you owe your customer some money.

You say, “List out a few scenarios where I may need to issue a Credit Note?”

  • Your customer has been of the “Rare customer” category and has paid you an advance. Whoa! Wish that happens again and issue a credit note with TLC.
  • Oops! You sent out a wrong invoicing amount to your customer. Don’t fret, just issue a credit note and your customer is never going to be cross with you on that.
  • You were bitten by a generosity bug after you send out an invoice and you want to give your customer a discount. Don’t shy away, send your customer a credit note for the discounted amount.
  • This time around your customer is bitten by the generosity bug and he makes an over-payment against an invoice. Send him a credit note and win brownie points for holding up your business ethics

You ask, “How does creating a credit note and associating it to invoices work?

We’ve kept the process simple.

You ask, “What else?”

As a user of Zoho Invoice, you would know that when we make something, we make it tunable for every user and then there’s certainly going to be a report. (Oh yeah! We love the numbers). This is what you can do with
your credit notes:

  • Set your credit note preferences
  • Generate a report on credit notes issued
  • Customize your credit note notification mails

Disclaimer: We agree that that’s helluva lot of exclamations on one post. Well, that’s how excited we are about this feature. We are sure you are as excited as we are!

Until we put another feature on the platter, happy invoicing!

  1. doorado

    We don’t understand why you eliminated the “add credit” option from the customers. The credit note cannot replace the “add credit” since it is affecting also customers sales.
    Please reconsider to bring back the option “add credit”. very urgent

  2. doorado

    We don’t understand why you eliminated the “add credit” option from the customers. The credit note cannot replace the “add credit” since it is affecting also customers sales.
    Please reconsider to bring back the option “add credit”. very urgent

  3. John Peter

    @Peter,
    Thanks! Glad to know you like what we do.@artgalstudio,
    Yes, that’s another way you can use a credit note. Write to support[at]zohoinvoice[dot]com for guidance on doing this.

  4. John Peter

    @Peter,
    Thanks! Glad to know you like what we do.@artgalstudio,
    Yes, that’s another way you can use a credit note. Write to support[at]zohoinvoice[dot]com for guidance on doing this.

  5. artgalstudio

    Do I understand that this feature could be used as a “Free with your Next Purchase” reward? For example, a customer has just paid off an invoice. I want to send them an incentive to order again so I want to offer them something free with their next purchase. I also want to keep track of the customers whom I’ve sent these offers to, so that when they make their next order I will know that I owe them a free item, to be shipped along with their next order.Thanks,
    artgalstudio

  6. artgalstudio

    Do I understand that this feature could be used as a “Free with your Next Purchase” reward? For example, a customer has just paid off an invoice. I want to send them an incentive to order again so I want to offer them something free with their next purchase. I also want to keep track of the customers whom I’ve sent these offers to, so that when they make their next order I will know that I owe them a free item, to be shipped along with their next order.Thanks,
    artgalstudio

  7. Peter

    Deepa (and the others @ Zoho),Thanks for the update: I like the feature and I like the exclamations!! It’s nice to see such enthusiasm. :)Zoho Invoices is a great product and it’s getting better all the time!Thanks again.Peter.

  8. Peter

    Deepa (and the others @ Zoho),Thanks for the update: I like the feature and I like the exclamations!! It’s nice to see such enthusiasm. :)Zoho Invoices is a great product and it’s getting better all the time!Thanks again.Peter.

  9. Vignesh

    @proventus, Sorry, we do not have plans to incorporate the delivery notes feature in Zoho Invoice any time soon. However, you can use a customized estimate template as a delivery note. Get in touch with support[at]zohoinvoice[dot]com to see how you can do this.

  10. Vignesh

    @proventus, Sorry, we do not have plans to incorporate the delivery notes feature in Zoho Invoice any time soon. However, you can use a customized estimate template as a delivery note. Get in touch with support[at]zohoinvoice[dot]com to see how you can do this.

  11. proventus

    Great, when will you introduce delivery note.

  12. proventus

    Great, when will you introduce delivery note.

  13. navas

    The option to include comments which will not be visible to your customer is already available in Zoho Invoice.To do this:1. Click the “Invoice” tab
    2. On the ‘All Invoices’ page, click the “Details” link below any invoice.
    3. This will open up the Invoice Details page, scroll down and you’ll see the “Comments & History” tab. Click that tab
    4. Under the tab you will see the option to “Add Comments”. Click that link and add your comments.
    5. You can add as many comments as you wish to and this will be available for view only to the users of your account and not your customers.For more information on this , write to support[at]zohoinvoice[dot]com

  14. navas

    The option to include comments which will not be visible to your customer is already available in Zoho Invoice.To do this:1. Click the “Invoice” tab
    2. On the ‘All Invoices’ page, click the “Details” link below any invoice.
    3. This will open up the Invoice Details page, scroll down and you’ll see the “Comments & History” tab. Click that tab
    4. Under the tab you will see the option to “Add Comments”. Click that link and add your comments.
    5. You can add as many comments as you wish to and this will be available for view only to the users of your account and not your customers.For more information on this , write to support[at]zohoinvoice[dot]com

  15. Dirprod

    Good idea.The next one should be the possibility to attach hidden comments to the invoices.
    In my case, I would use it to note the dates I sent the invoice ( again and again ), or when I phoned the customer about it. ( They dont like to pay ! )

  16. Dirprod

    Good idea.The next one should be the possibility to attach hidden comments to the invoices.
    In my case, I would use it to note the dates I sent the invoice ( again and again ), or when I phoned the customer about it. ( They dont like to pay ! )

  17. Bibin Abraham - Zoho Invoice T

    Thanks, glad to know you like this feature. Write to support[at]zohoinvoice[dot]com with your comments and suggestions, if any.@ozzierod:
    I presume that you want to carry forward the balance from one invoice to the next and give the option to your client to either pay the amount due from your old invoice or the amount due from both the invoices.For example, if from an invoice A there is an outstanding of $70 and if that is carried forward and included to the balance due from an invoice B with an original due amount of $200 . This implies that the invoice B now has a balance due of $200+$70 = $270.And you want to be able to give your client the option to pay either $70 or $270 but the customer statement will show the balance due for this customer as $270(from invoice B) + $70(from invoice A)= $340 instead of $270, thus resulting in inconsistent data.And for this reason, we will not be able to incorporate the requested feature as this will affect reports, customers statements, etc.Instead you can show the balance due from past invoice to your customers by sending out a statement to the customer. To see how you can do this refer our help docs on customer statement –
    http://www.zoho.com/invoice/help/customers/invoice-customers.html#customer-statements If you have a specific scenario on where this might be useful to your business, please write to support[at]zohoinvoice[dot]com with an example of your requirement, we would be more than glad to assist you.

  18. Bibin Abraham - Zoho Invoice T

    Thanks, glad to know you like this feature. Write to support[at]zohoinvoice[dot]com with your comments and suggestions, if any.@ozzierod:
    I presume that you want to carry forward the balance from one invoice to the next and give the option to your client to either pay the amount due from your old invoice or the amount due from both the invoices.For example, if from an invoice A there is an outstanding of $70 and if that is carried forward and included to the balance due from an invoice B with an original due amount of $200 . This implies that the invoice B now has a balance due of $200+$70 = $270.And you want to be able to give your client the option to pay either $70 or $270 but the customer statement will show the balance due for this customer as $270(from invoice B) + $70(from invoice A)= $340 instead of $270, thus resulting in inconsistent data.And for this reason, we will not be able to incorporate the requested feature as this will affect reports, customers statements, etc.Instead you can show the balance due from past invoice to your customers by sending out a statement to the customer. To see how you can do this refer our help docs on customer statement –
    http://www.zoho.com/invoice/help/customers/invoice-customers.html#customer-statementsIf you have a specific scenario on where this might be useful to your business, please write to support[at]zohoinvoice[dot]com with an example of your requirement, we would be more than glad to assist you.

  19. ozzierod

    How about the reverse? I need a way to bring a balance forward from an unpaid invoice, reference the invoice and somehow still credit the old invoice if the client wishes to pay that first and credit both if the client wishes to pay the latter which contains a full amount. We need more of that kind of flexibility.

  20. ozzierod

    How about the reverse? I need a way to bring a balance forward from an unpaid invoice, reference the invoice and somehow still credit the old invoice if the client wishes to pay that first and credit both if the client wishes to pay the latter which contains a full amount. We need more of that kind of flexibility.

  21. Roberto

    Great. Well done! 🙂

  22. Roberto

    Great. Well done! 🙂

  23. MDO Tecnología

    Exelente funcionalidad, felicitaciones.

  24. MDO Tecnología

    Exelente funcionalidad, felicitaciones.