In this section:
- Activating Credit Notes
- Template for printing a Credit note
- Creating a Credit note
- Managing Orders Which Have Credit Notes
- Why is the Credit Note Option Not Visible?
To make your business compatible with most EU states and the United States, in cases where you have a canceled or returned order that has already been paid, you need to issue a credit note. A credit note is a commercial document that the merchant produces for the customer to notify the customer that credit is being applied to the customer for various reasons. For example, the customer has returned the goods, the goods were damaged in some way, or there was a mistake in the price on the original invoice. On the credit note, the merchant will list the products, quantities, and product prices agreed upon by both parties. Then, the credit can be provided to the customer as money.
Activating Credit Notes
1. To use this feature, you must have activated invoicing in your store from the Settings > Invoicing section.
Without invoicing you will not be able to create credit notes. If the second option ‘Issue an invoice only if a billing address is selected’ is turned off, that means that every order will be generated with an invoice, and you will be able to create a credit note on every order in case there is a canceled or refunded one.
A credit note cannot be issued for an order without a generated invoice.
2. The credit notification information is right after your company details in the Invoicing section.
- Invoice number padding - this setting tells the system how many digits a credit note should have. Each credit note has unique credit numbers that differ from those on the invoice, although the two are related. Ex. if the credit memo number is 123 and you have set a fill of 10 digits, then the credit note number would look like this 0000000123
- Method of payment by CN - it specifies what payment method you will use to return the money. If you choose ‘Do not change the payment method’, the payment method that was originally used for the purchase will be used for returning the money. If you select a different payment method, for example, Bank Wire Transfer, each credit note by default will be generated with a Bank Wire Transfer payment method. Тhe drop-down menu will display all the payment methods you have activated in your store. This setting cannot be changed on each credit note individually.
Template for printing a Credit note
In the section, you don’t need to create a template yourself because the software comes with a default one for the PDF. But if you want to make some changes to the PDF file, its structure, or add some other things, the variables in the legend are available to you and CSS classes that you can use to customize your credit note. There is also a template that you can download, edit, and add below the CSS classes.
Creating a Credit note
Go to a specific order marked as canceled or refunded and applicable for a credit note. In addition to the standardly available options: ‘View invoice’ and ‘Print order’ in the middle, you will see a third one - ‘Credit Note’ - in the upper right corner of the page.
*If the order is not marked yet you need to open the order's detailed page and click on the Refund button or change its status to canceled/refunded from the drop-down menu at the top of the page then the 'Credit note' option will appear.
Important! Credit notes are not automatically issued. Instead, merchants need to generate their credit notes manually one by one. If you want to create a credit note, click the ‘Credit note’ button and choose the ‘Create credit note’ option. Otherwise, the credit note will not be created.
Once the credit note has been created, the merchant can download the credit note as a PDF file or send the credit note to the client. The credit note will be sent to the customer using a template for credit notes, which you can find in Marketing > Omnichannel > Email templates > Credit note. This template will be used only for sending a credit note to the customer. It works the same way as all other templates. If you like the design, you can leave it as is.
Managing Orders Which Have Credit Notes
Go to the section Orders > Invoices. Once you have a credit note created for a specific order, the credit note will be added to the Invoices section. Thus, you can easily view all the credit notes that you have issued here. There are filters as well, which you can use to filter through invoices based on whether they have a credit note or not. You can select all invoices with a credit note and download them at once using the Tools option.
Why is the Credit Note Option Not Visible?
1. You cannot create a credit note for an order made without an invoice. Imagine that you had turned on the invoicing part later when you already have placed orders at your store. The orders you received between the time you started your business and turned on invoicing will not have invoices, and for those orders, you will not be able to issue a credit note. Therefore, the credit note option will not be visible in the upper right corner of the page.
2. The second scenario in which the credit note option might not be visible and enabled is if under Settings > Invoicing you have switched on the option ‘Issue an invoice only if a billing address is selected’. This means that if the customer does not provide a billing address, an invoice will not be issued, and unless there is an invoice, there will not be an option for creating a credit note.