Create and apply a credit note

Use credit notes to account for client overpayments or future invoices as an alternative to issuing refunds.

Credit notes are used to apply on invoices created in Smokeball Billing. Learn how to create an invoice.

Create a credit note

There are multiple ways you can create a credit note:

• Select Create New on the top-right corner of the Smokeball Web App, then select Credit.
  
• Open a matter, then navigate to the Invoices tab and select Add Credit.
  
• Open a matter, navigate to the Transactions tab and select Credit Note Ledger from the left menu. There will be an option to Add Credit.
  
  
• Select Accounts from the left menu, then choose Credit Note Ledger from the left panel, and click on Add Credit.
  

When you select Add Credit, a box will open on the screen where you can enter the details of the credit note. 

Once you have entered an amount, the Credit Balance field will automatically update with the running credit balance for this matter. Select Save once done.

View all credit notes

The Credit Note Ledger is where you can view a list of all credit notes issued and reversed.

To access the Credit Note Ledger for an individual matter:

1. Open the matter, then select the Transactions tab.
2. Select the Credit Note Ledger under the Ledger heading on the left panel.
   

To access the Credit Note Ledger for all matters:

1. Select Accounts from the left menu.
2. Select Credit Note Ledger from the left panel.
   

Apply a credit note to a draft invoice

1. Open the draft invoice you wish to add a credit to.
2. Select Final from the right-hand panel, then select Pay from Credit to enter the credit amount you wish to apply to this invoice.
   
3. Select Finalise Draft to finalise the invoice.

Apply a credit note to an outstanding invoice

1. Open the outstanding invoice from the Invoices list in the matter.
2. Select Add Payment.
3. In the Amount field, enter the credit amount you wish to apply to this invoice.
4. In the Type dropdown menu, select Credit. 
   
5. Select Process.

Reverse a credit note

In Smokeball, you are unable to delete credit notes; you can only reverse them. 

To reverse a credit note:

1. Open the relevant matter, then select the Transactions tab.
2. Select the Credit Note Ledger under the Ledger heading on the left panel.
   
3. Click on the credit note you wish to reverse.
4. Select Reverse at the bottom of the Credit Details window.