On Magnetic, you can create a Credit Note(CN) directly from a Tax Invoice(TI)
Follow these steps:
- Click Finance
- Click on Tax Invoices
- Find the TI you want to use to create a CN from. (You may want to use the search filters).
- Hover over the Action (3 dots) icons on the right-hand side of the TI.
- Click "Add Credit Note".
- A new Credit Note screen will open where you can fill in all the details for the CN.
- Add the relevant information. (All information marked with *must be filled in).
- Contact: Contact at the company the CN is addressed to.
- Company: Company the CN is for.
- Job: The job the CN is associated with. Link this CN to a particular job by adding the relevant job name in here.
- Owner: Person in charge of the CN.
- Title: Credit Note title.
- Tag: A comma-seperated list of tags used to segment your database.
- Issue dates: Date the CN is issued.
- Delivery date: Date goods will be shipped / service provided.
- PO Number: Tax Invoice number supplied by company.
- Status: Select the workflow stage the CN is in from the dropdown menu. E.g. Issued, Draft.
- Terms of payment: Select the payment term from the dropdown menu. (You can create your own payment term in your company settings under the Finance section).
- Description: Add any extra information you think is important in this text box.
- Hide quantity and costs on PDF: Tick this box if you want this information to be hidden from the client when viewing the PDF.
- Only display section headings and sub-totals on PDF's: Tick this box if you want this information to be hidden from the client when viewing the PDF.
- Hide line totals on PDFs: Tick this box if you want this information to be hidden from the client when viewing the PDF.
- Item types:
- Select the relevant item type from the dropdown menu. You can create your own list of item types. Alternatively, select the "New item" option from the dropdown menu and create a new item type.
- Section Headings: If you would like to split your CN into sections, choose Section Heading and name it. When printing your CN you will see the line items split and a total per section is automatically added.
- Mouse over a line item to display icons to change order, add new or delete line items.
- Quantity: A number of hours for that particular item type to be charged for.
- Cost: Basic cost per line item without markup added.
- Mark-up: Percentage added onto Cost. (Note: For externally sourced products / services, set the markup you are adding in before selling).
- Ext. Cost: The product of quantity x cost that the client will be charged. This amount does not include the margin.
- Margin: Profit value that is added onto the external cost amount.
- Line Total: The total of the external cost plus the profit margin.
- Tax type: Select one of the following options on the dropdown menu:
- No Tax: Items which are not taxed.
- Taxable: Items which follow standard taxable rules.
- Zero Rated: Items that are zero-rated for tax purposes.
- Exempt: Item types which can not be charged VAT.
- Details: This text box is useful if you want to add additional information about the item type being added.
- Add a discount percentage or change the tax percentage if you wish.
- Ensure all the info is correct.
- Save the details
- Your tax invoice status will update the credited/part credited depending on the credited amount.
- Download or email the CN to the client by clicking the Action(3 dots) icons and selecting the relevant option.
See the screenshots below:
Adding a credit note directly from a tax invoice
Additional options available for credit notes