Credit notes are official documents that formally reduce the amount of an invoice typically due to a refund, error, or discount.
You may need to issue a credit note in the following cases:
Data entry errors: If you accidentally issued an invoice for a higher amount than needed, you can use a credit note to adjust their invoice.
Canceled services or inventory issues: If a customer cancels a service or you are unable to fulfill an order, you can use a credit note to formally correct the invoice amount due.
Discounts: If you and a customer negotiate a discount on an issued invoice, you can use a credit note to adjust the amount owed without having to void the original invoice and issue a new one.
Recording an overpayment: If a customer overpaid on a previous invoice, you can issue a credit note for the overpaid amount and apply it to their next invoice. This ensures that the customer pays the correct, adjusted balance.
Reversing manual payment errors: If you accidentally marked the invoice as "Paid externally" when the payment was never actually received, use a credit note to correct an invoice.
Issue a credit note
Administrators can issue a credit note to invoices with the "Unpaid" and "Paid" status:
Go to Billing > Invoices > use filters to easily find and open the necessary invoice.
In the "Credit notes" section, press
Create.Configure the credit note properties and press
Issue. You can create multiple credit notes per invoice.
Property | Meaning |
Reason | Select a reason for the credit note from the dropdown menu. |
Set an effective date | Enable if you want to set a specific date for when the credit note will be applied. This date must be between the invoice issuance date and today. Disable this option to apply the credit note immediately on the day you issue it. |
Description | Select the specific invoice item for which you want to issue a credit note. |
Set the amount you want to credit |
|
Add credit option Appears if the invoice has a "Paid" status
| Define how you want to process the credit:
|
Memo | Add a memo for internal reference if needed. |
The credit note amount must be less or equal the total invoice amount, and cannot be negative. If an invoice already has an applied balance, and the total credit amount (credit note amount + previously applied balance) becomes greater than the invoice's total, the difference is automatically added to the customer's money balance to be applied to their next invoice.
Credit notes applied to invoices do not currently sync to QuickBooks and Xero. If a credit note fully covers an invoice in Spacebring and marks it as "Paid," this status will not update in QuickBooks or Xero. To ensure your records are accurate, please adjust these invoices manually within your QuickBooks or Xero dashboard.
Understanding the credit note totals
Adjustment total: The total amount of the credit note that will be applied to the invoice.
Current amount remaining: The total amount of the invoice before the credit note is applied.
Adjusted amount remaining: The final amount that will be due on the invoice after the credit note has been applied.
Amount to credit: The amount that will be credited to the customer. Appears if the invoices has a "Paid" status
View a credit note
Administrators
To review the credit note, open the invoice it was applied to > click the credit note number from the invoice or open it from the "Credit notes" section. To download the credit note PDF, press Download PDF.
Users
To view the credit note in the member portal or mobile app, users go to Membership > Billing > Invoices page > open the necessary invoice > check the "Credit notes" section.
In Analytics
In the "Invoices" report and charts, invoices with a credit note show as unpaid until they are fully paid.
Transactions for the credit note are not created and are not reflected in the "Transactions" report and payments charts. Only transactions for the final part of the invoice payment are recorded.
Void a credit note
Voiding a credit note is useful if it was issued by mistake or if the original circumstances have changed.
You can void a credit note only if the invoice it was applied to still has an "Unpaid" status. This action reverses the credit adjustment and increases the amount due on the invoice. To do so, follow these steps:
Open the necessary invoice.
Press on the credit note number from the invoice or open it from the "Credit notes" section below.
Press the (...) menu top right >
Void.
Confirm your choice. Once voided, the credit note is marked as "Voided" and the invoice amount due is updated accordingly.
Voiding a credit note is irreversible.
How taxes and coupons apply to credit notes
If the original invoice included a coupon or tax, the credit note will also reflect these amounts proportionally. This ensures that your financial records are accurate, with the credit note correctly reflecting the money that should be paid.
How users pay the remaining amount
Once a credit note is applied, the customer can pay the remaining balance in two ways:
Online payment: The customer pays the outstanding balance via the member portal or mobile app.
External payment: If the customer submits the remaining payment externally, the administrator can manually mark the invoice as paid externally.
Once the remaining amount is paid, the invoice status updates to "Paid".