Debit Notes and Credit Notes in Odoo 15 Accounting Module
A credit note, also known as a credit memo, is a document that informs a customer that they have been credited a specific amount. A credit note can be issued for a variety of reasons, including:
- An error on the invoice
- A rejection of the services or a return of the goods
- The products were damaged when they were delivered.
Accounting => Customers => Credit Notes
By selecting Create, you can create a credit note. Filling out the Credit Note form is similar to filling out the Invoice form. Credit notes are frequently generated straight from the invoices to which they are linked. To do so, open the Customer Invoice and select Add Credit Note. Click the Create button to create a new Credit Note.
Select the customer and enter the delivery address. Enter the Invoice Date, Due Date, and Payment Reference and choose the Journal. You can add products by clicking the Add a line button under the invoicing tab. You may check the Journal items in the Journal items tab, and you can add more information in the Other info tab. After you’ve completed the setting, click the Confirm button and register the payment.
All the fields will be immediately filled in with information about the product you selected. After the configuration, click the Create Payment button, and the invoice will appear with the In Payment tag.
Credit notes from the Customer Invoice
Customers => Invoices
To create a new invoice, click the Create button.
Confirm the invoice after filling in the details.
You can add a credit note by clicking the credit note available at the top. A setup tab will display when you select it, allowing you to edit the Credit note.
There are three credit methods available to choose from:
- Partial Refund
- Full Refund
- Full refund and new draft invoice
Odoo generates a drafts credit note that contains all of the information from the original invoice. This is where you can choose to do a partial refund or change any information on the credit note.
Odoo automatically prepares a credit note, validates it, and reconciles it with the original invoice. This is the option to cancel a verified invoice or receive a complete refund.
Full refund and new draft invoice
Odoo creates a credit note, validates it automatically, reconciles it with the original invoice, and opens a new drafts invoice with the same information as the original invoice. This is the possibility to change the invoice’s content after it has been validated.
You can use a specific Journal if necessary. Mention the reason for the credit note in the area provided. The Reversal Date can be a specific or journal entry date. You can enter a custom date if you choose a specific reversal date, and if you choose a Journal entry date, it will be automatically updated to the journal entry date. After you’ve completed the configurations, click the Reverse button to complete the procedure, and then confirm it by clicking the Confirm button on the invoice. Click the Register Payment button, and a setup tab will appear for Register Payment.
After the configuration, click Create Payment to save the forms. In the Sales Journal, you can see the Credit note.
Accounting => Sales
The newly created Credit Note is shown in the list.
Debit notes are critical records made when items are returned for a variety of reasons, including product damage or service difficulties, etc. Odoo can help you manage these inconveniences in your company. The handling of debit notes is required to maintain a positive customer-to-business relationship.
Vendors => Bills
All the bills will be listed. All of your bills may be generated, managed, and tracked from here. Choose a bill from the list or create a new one to use the Debit note function. Then Bill’s configuration page will open.
A debit note can be created by selecting the add debit note option.
Specify the reason for the debit note in the area provided. The Specific Journal option allows you to use a specific Journal for the Debit note or you can type in the name of the new journal in the field, and a Create and Edit button will appear, and selecting it you can define the entries.
You can create a new specific journal by adding the details.
After you’ve completed setting the debit note, click the Create Debit Note button to begin making it. The Vendor Bill page will appear when you’ve created the debit note. After you’ve added the product, click the Confirm button.
After confirmation, you will be directed to register the payment.
After making payment the vendor bill shows the In Payment tag.
Having an effective credit and debit note management system is necessary for maintaining the business’s integrity and it will play an essential role in creating strong client relations.
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