Issue a credit note | Odoo Accounting
Summary
TLDRThis video tutorial explains the concept of credit notes, their importance in business transactions, and how to handle them in OpenERP (ODU). It demonstrates creating a credit note for a returned or damaged product, guiding through the process of issuing a credit note directly from an existing invoice. The video covers the steps from accessing the accounting app, configuring the sales journal, creating and editing the credit note, to reconciling it with the original invoice. It emphasizes the ease of managing customer satisfaction and transparency in financial dealings.
Takeaways
- 📝 A credit note is a document used to inform customers that they have been credited for a reason, such as a product return or receiving a damaged product.
- 🔄 The journal entry for a credit note is the reverse of an invoice, with debits to income accounts and credits to accounts receivable.
- 💼 In Bloom's accounting system, credit notes can be configured to have a dedicated sequence separate from invoices, denoted by an 'R' prefix.
- 📊 The sales journal configuration in the accounting app allows for the setup of credit note sequences and other related settings.
- 📑 Credit notes can be created through the credit notes menu or directly from an invoice in the system.
- 🛒 If a product is returned or damaged, a credit note can be issued by selecting the credit note option on the invoice and entering the appropriate details.
- 📅 The reversal date on a credit note can be set to the current date or another specified date, depending on the situation.
- ➡️ There's an option to either reverse the transaction or reverse and create a new invoice, which affects how the credit is processed.
- 📝 After selecting to reverse, the credit note is created in draft status, where specific items can be adjusted before confirmation.
- 💸 If the customer hasn't paid, the credit note is automatically marked as paid by reconciling it with the original invoice, streamlining the process.
- 🔗 The system maintains transparency by linking the credit note to the original invoice and updating the customer portal accordingly.
Q & A
What is a credit note and why is it used?
-A credit note is a document used to notify customers that they have been credited for some reason, such as returning a product or receiving a damaged product. It decreases the amount a customer owes.
How is the journal entry for a credit note different from an invoice?
-The journal entry for a credit note is essentially the opposite of that of an invoice, with a debit to the income account and a credit to the account receivable.
Can you create a dedicated sequence for credit notes in the accounting app?
-Yes, in the accounting app's configuration, you can create a dedicated credit note sequence that separates the sequences of invoices and credit notes, adding an 'R' to the beginning of the short code for credit notes.
How does the process of creating a credit note from an invoice differ from creating one directly from the credit notes menu?
-Creating a credit note from an invoice automatically populates the same sales journal as the invoice, making the process more streamlined and ensuring consistency.
What is the purpose of the 'reverse' option when creating a credit note from an invoice?
-The 'reverse' option allows you to create a partial credit note for the returned or damaged goods, without fully reversing the original invoice or creating a new one.
What does the 'reverse and create invoice' option do in the credit note creation process?
-The 'reverse and create invoice' option fully reverses the original invoice and then creates a new invoice that can be adjusted to include only the undamaged goods.
How does the system handle a credit note when the customer hasn't made a payment yet?
-If the customer hasn't paid, the credit note is automatically marked as paid by reconciling the amount directly with the original invoice, avoiding the need for a refund payment.
How can customers view their credit notes and invoices?
-Customers can view their credit notes and invoices in the customer portal, where both documents are available for easy access and transparency.
What is the significance of marking the credit note as paid in the original invoice?
-Marking the credit note as paid in the original invoice ensures transparency and helps in understanding that the amount for the returned or damaged goods has been accounted for, even if no actual money has been paid.
How does the system ensure that the customer is aware of the credit note issued to them?
-The system includes a note in the 'chatter' section linking back to the credit note, ensuring that the customer is informed and can easily access the document.
What is the ultimate goal of handling credit notes efficiently as described in the script?
-The ultimate goal is to keep customers satisfied by efficiently handling credit notes, ensuring they have a positive experience and are likely to return for more business.
Outlines
📝 Introduction to Credit Notes
The video script begins by defining a credit note as a document that informs customers they have been credited, typically due to a product return or damage. It explains that the journal entry for a credit note is the opposite of an invoice, with a debit to the income account and a credit to accounts receivable. The script then transitions to a demonstration within the OpenERP (ODU) dashboard, focusing on the sales journal configuration, where a dedicated sequence for credit notes can be created.
🛠️ Creating a Credit Note in ODU
The script continues with a step-by-step guide on creating a credit note in the OpenERP (ODU) system. It describes accessing the accounting app, navigating to an existing invoice, and using the credit note button to initiate the process. The script highlights the ability to input a reason for the credit, select a journal, set a reversal date, and choose between reversing the transaction or reversing and creating a new invoice. The process is illustrated with an example where a customer reports a damaged product and is offered a credit note.
🔄 Editing and Confirming the Credit Note
After initiating the credit note, the script explains how to edit the draft to include only the damaged product and then confirm the credit note. It emphasizes that since the customer had not yet paid, no refund is necessary, and the credit note is automatically marked as paid by reconciling it with the original invoice. The script also mentions the transparency provided by the system, allowing customers to see the credit note and its impact on their account through the customer portal.
🤝 Enhancing Customer Satisfaction with Credit Notes
The final part of the script discusses the importance of handling credit notes efficiently to maintain customer satisfaction. It suggests that by offering credit notes directly from invoices and making them easily accessible in the customer portal, businesses can ensure repeat business. The script concludes with a sign-off from the presenter, promising to see the audience in the next video.
Mindmap
Keywords
💡Credit Note
💡Journal Entry
💡Invoice
💡Sequence
💡Configuration
💡Reversal Date
💡Draft State
💡Confirmation
💡Reconciliation
💡Customer Portal
💡Transparency
Highlights
A credit note is used to notify customers that they have been credited for some reason, commonly for product returns or damages.
The journal entry of a credit note is the opposite of an invoice, with a debit to the income account and a credit to accounts receivable.
In OpenERP (ODU), you can configure a dedicated credit note sequence to separate invoice and credit note numbers.
Creating a credit note through an invoice in ODU populates it with the same sales journal, simplifying the process.
A credit note can be issued for a specific reason, such as 'damaged goods', which is displayed on the document.
The reversal date on a credit note can be set to the current date or another specific date.
There are options to either reverse the original invoice or reverse and create a new invoice with adjustments.
After reversing, a credit note is created in draft status, allowing for editing of the credited items.
A partial credit note can be confirmed and marked as paid without issuing a refund if the customer hasn't paid the original invoice.
The original invoice can be reconciled with the credit note, marking it as partially paid.
Transparency is maintained as the credit note payment is linked back to the original invoice in the system.
Customers can view their credit notes alongside their invoices in the customer portal, enhancing satisfaction.
Handling credit notes directly from invoices streamlines the process and improves customer relations.
The video demonstrates the practical application of credit notes in ODU for managing customer refunds and returns.
The presenter, Dow, provides a step-by-step guide on issuing credit notes in ODU, ensuring clarity and ease of understanding.
The video concludes with the importance of keeping customers happy through efficient credit note management.
Transcripts
hello dear o doers and welcome to this
video on credit notes first of all what
is a credit note a credit note is used
to notify customers that they' have been
credited for some reason the most common
reason that we use them here at Bloom is
if they want to return a product or if
they received a damaged product so since
a credit node is decreasing the amount
that a customer owes the journal entry
of a credit node is essentially the
opposite of that of an invoice with the
debit and the income account and the
credit in the account receivable let's
take a look at it in ODU so here we are
on our ODU dashboard and the first thing
we'll do is open the accounting app and
we're going to look at the configuration
of our sales Journal here we have the
option to create a dedicated credit note
sequence if enabled this will separate
the sequences of invoices and credit
notes and add an R to be the beginning
of the short code that is set here for
the credit notes for example
rinv instead of
INB next we'll create a credit note and
while that is possible through the
credit notes menu item below
customers we're actually going to
instead go to one of our invoices
directly we can see on this invoice that
it has been posted but we have not yet
received any payment for it so is
currently unpaid now now let's say that
Acres Lawn Care has reached out to us to
say that one of their tomato plants was
unfortunately Dead on Arrival but they
don't need a replacement and because of
that and we really want to keep them as
a customer we're happy to offer them a
credit note to do that we can simply
click on the credit note
button and we now have a few options
first we'll enter a reason displayed on
the credit note so I'll just say here
damage
goods and next we have the option to
select a journal one of the benefits of
going through the invoice instead of
creating a credit note by itself is that
this is already populated with the same
sales Journal that this invoice is in
next we have our reversal date and I'll
just leave that as today and finally we
have the option to Simply reverse or to
reverse and create
invoice I'm going to select the
suggested option reverse and by clicking
reverse we will have a credit note in
the draft State and we can choose what
exactly we want to be credited the other
option reverse and create invoice would
fully reverse the original invoice and
then create a new invoice that we could
adjust to have only the undamaged goods
so with reverse and create invoice we
actually have three documents the
original invoice the full credit note
and the new invoice but with this option
to reverse we'll only need two documents
the original invoice and the partial
credit note for the single damaged
plant so here we have our editable
credit note in the draft status we'll
remove all of the products except for
just one of the tomato
plant now we can confirm this credit
note
and since in this case the customer
hadn't already paid we don't need to
actually pay out a refund and this
credit note is automatically marked as
paid we can see through the info icon
here that it was paid by reconciling
this amount directly with the original
invoice which we can access either here
or through the
chatter back on the original
invoice we can see that it's been marked
as partially paid and we see another
info icon
here explaining that the amount of just
one tomato plant was paid by the credit
note so even though they haven't
actually paid us any money for this
invoice yet everything is transparent
and everything is easy to understand
lastly we do also have a note in the
chatter linking back to that credit note
so our customers are going to be
thrilled now that we can handle credit
notes directly from their invoices and
of course their credit notes are
available alongside their invoices in
the customer portal by keeping our
customers happy we'll be sure that they
keep coming back for more that's all for
this video from your pal Dow I'll see
you in the next one
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