How to create a Credit Note in EdgeCTP and copy to FreeAgent

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Credit Note to refund an invoice or just credit a client in EdgeCTP

Overview

Once you have created an invoice in EdgeCTP and copied it to FreeAgent, you may want to cancel the invoice by issuing a Credit Note in EdgeCTP and copying that to FreeAgent too.  Again this is relatively simple to do.  Just make sure you’ve first connected EdgeCTP to FreeAgent and we’re good to go.

In this post you’ll learn how to:

  • Create a Credit Note in EdgeCTP to cancel an existing Invoice
  • Create a Credit Note in EdgeCTP just to credit a client’s account
  • Copy and view the Credit Note in FreeAgent

How to Create a Credit Note in EdgeCTP

The following is a brief step-by-step guide that shows how to create a Credit Note in EdgeCTP.

Create a Credit Note to Cancel an existing Invoice

EdgeCTP allows you to create a Credit Note to cancel either a Standard Accounts Invoice or a Commercial Invoice (usually used when trading internationally).  Remember that an invoice that has been authorised and copied to the accounting package (FreeAgent) or sent to the client, needs to be cancelled with a Credit Note.

TIP: If you have NOT copied the invoice to the accounting package AND NOT sent it to the client, then you can simply cancel the Invoice within EdgeCTP WITHOUT a credit note.

Example assumption: If you want to follow along with the example below, where we’ll create a Credit Note to cancel an existing invoice that has been copied to FreeAgent, then we’re assuming that you’ve already created an invoice that you’ve copied to FreeAgent, and now you want to cancel it with a credit note.  You should already be connected to FreeAgent from within EdgeCTP before you try out this example.

Find the Invoice to Cancel in EdgeCTP

Begin by first finding the invoice you wish to cancel with a credit note.  Login to your EdgeCTP account and make sure you have the correct user role (Creator or above, i.e. ‘Auditor’ user roles cannot create documents).

  • From the home dashboard choose from the tabs: Docs-n-Certs > Financial Documents 

    Credit Notes are found in the Financial Documents section of EdgeCTP
  • The ‘Financial Documents‘ dashboard will appear, choose the ‘Invoice‘ tab’ and search for an invoice that has been authorised and you wish to cancel.  You can use the ‘Search‘ box if you know the invoice number or buyer’s company name etc.  Notice if the ‘Acct.‘ column has a value of ‘Yes‘, which means the invoice was sent to FreeAgent (the accounting package)

    EdgeCT: Select invoice to credit
  • Having located the invoice you wish to credit, click the ‘Edit‘ (pencil) icon from the Actions and wait for the Invoice to appear

    Edit the invoice to credit

Cancel the found invoice with a Credit Note

  • Make sure this is the correct invoice that you wish to credit.  If it is, then click the [Cancel with Credit Note] button at the top
  • When asked if you are sure you want to cancel the invoice with a credit note, click the [Yes, I’m sure – do it!] button
Confirm you are good to cancel the current invoice with a credit note
  • Wait for the system to cancel the Invoice and replace it with a Credit Note on your screen (which is in a draft state initially) and references the invoice (by number) that it is crediting

    Credit Note with reference to the invoice it is crediting
  • Check the Credit Note is correct, which should be a mirror-image of the Invoice that the Credit Note is cancelling (e.g. amounts being Refunded etc.)

    Refund amount reflects the original Invoice amount
  • Once you are ready, click the [Save & Authorise] button at the top of the Credit Note to create the Credit Note within EdgeCTP (if you’re asked again to confirm you wish to cancel the Invoice with the Credit Note, then just click the [Yes, I’m sure – do it!] button)
  • Wait for the system to perform the necessary cancellation and creation steps and the ‘Authorised‘ Credit Note will re-appear.  That’s it, you’ve successfully created a Credit Note in EdgeCTP!

    Authorised Credit Note

Sending the Credit Note to FreeAgent

  • If the original Invoice (that you’d previously searched and selected) had been copied to FreeAgent (i.e. Acct. = ‘Yes‘ on the Invoice dashboard), then you should now ALSO copy this Credit Note to FreeAgent, so that the Invoice is credited in the accounting package too
  • With the Credit Note that you wish to send to FreeAgent visible on screen, click the [Copy to Acc. Package] button, and when asked to confirm, click the [Yes – Just Do It!] button

    Confirm you wish to send the credit note to FreeAgent
  • Wait for the copying processing to complete and the Credit Note re-appears with the [Go to Accounting package] button visible – just click it to open a new tab for FreeAgent and view the Credit Note in FreeAgent (if required, just login to FreeAgent as normal)
    Copied Credit Note allowing you to [Go to Accounting Package] and view it in FreeAgent
  • Make sure the Credit Note in FreeAgent is a true reflection of the same Credit Note in EdgeCTP

    Credit Note in FreeAgent sent from EdgeCTP

Refunding a Credit Note in FreeAgent

Both FreeAgent and EdgeCTP can refund/settle credit notes.  In the example below (carrying on from the steps above) we’ll ‘part’ refund/settle a credit note in FreeAgent and then complete the remaining balance settlement in EdgeCTP.  However, you can refund/settle the credit note ‘in full’ within FreeAgent in just the first step; we’re only doing refunding in this part-and-part way to demonstrate that both FreeAgent and EdgeCTP can settle a Credit Note.

  • With the Credit Note open in FreeAgent and visible on screen, click ‘Add a Manual Payment‘ link at the top of the Credit Note

    Manual Pay a Credit Note in FreeAgent
  • In the New Manual Bank Account Entry screen of FreeAgent, set the following values:
    • Type – leave as ‘Credit Note Refund’
    • Dated on – leave it as today
    • Value – this is initially shown as the full amount that needs to be refunded.  If you’re settling/refunding it all now, then just leave this as the full amount.  For this example, let’s say we’re settling/refunding only £4,000 (leaving a balance of £5,000 from the £9,000, which we’ll completely refund in EdgeCTP)

      Adjust the Value to suit the refunding amount or leave as is for a full refund
    • Leave the remaining fields are they are and click the [Create and Finish] button
  • The Credit Note reappears in FreeAgent showing the refunded amount and balance due

    FreeAgent: Part Refunding Credit Note
  • That’s it, you’ve done a credit note refund in FreeAgent.  If you want to see this refunded Credit Note amount reflected in EdgeCTP, then:
    • Click on the EdgeCTP | Credit Note tab in your browser (or login to EdgeCTP and go to Doc-n-Certs > Financial Documents > Credits and open the Credit Note you wish to see refunding on)

      Switch to EdgeCTP from FreeAgent (in Google Chrome)
    • If necessary click the browser reload page icon button so that the information of any Credit Note refunds in FreeAgent are automatically fetched into EdgeCTP

      Reload the Credit Note page to pull-in/sync with FreeAgent refund amounts
    • Scroll to the bottom of the Credit Note and notice the refund/settlement history.  If FreeAgent has fully settled this Credit Note then the Refund Balance Due would be zero; otherwise, the remaining balance will be shown and you can settle it in EdgeCTP (as a next step)

      Refunded amount(s) and balance due for the Credit Note

Refunding a Credit Note in EdgeCTP

  • Open (in edit mode – i.e. pencil action) the Credit Note you wish to pay the refund amount again in EdgeCTP (if you’re continuing from the previous step then you’re already seeing it on the screen)

    Full Refund a Credit Note in EdgeCTP
  • Click the [Refund] button at the top left of the Credit Note and choose ‘Full Refund‘ (you can also ‘Part Refund’ in a similar manner, and you adjust the Payment/Refund Amount accordingly in the next step)
  • On the Confirmation pop-up, just make sure the Payment/ Refund Amount is correct (or adjust accordingly in the case of a ‘Part Refund’) and click the [Save] button

    Confirm remaining balance Full Refund in EdgeCTP
  • The Credit Note reappears and is set to FULLY REFUNDED; you can scroll to the bottom and see the refund payment history in the Refund Receipts panel

    Fully Refunded Credit Note in EdgeCTP
  • To see the EdgeCTP refund reflected in FreeAgent, just click the [Go to Accounting Package] button at the top of the Credit Note and FreeAgent’s Credit Note is shown

    Fully refunded Credit Note in FreeAgent
  • Make sure that the Credit Note amount corresponds with EdgeCTP

Create a Credit Note by itself in EdgeCTP

Occasionally, you may wish to just create a Credit Note to refund monies to a client, which is NOT related to any particular invoice or sales order, e.g. compensate a client for their loss or incident.  In which, case you can create a Credit Note in EdgeCTP WITHOUT needing to first find an invoice to cancel.  The following demonstration steps show you how that is done.  For accounting completeness, we’ll also copy the Credit Note to FreeAgent.

Creating just the Credit Note in EdgeCTP

  • Login to EdgeCTP and from the main (home) dashboard, use the tab menu and choose: Docs-n-Certs > Financial Documents

    Credit Notes are in Financial Documents within EdgeCTP
  • From the Financial Documents dashboard click on the [+ New Financial Docs] button and choose Credit Note from the menu

    Choose Credit Note to Just Create it
  • Wait for the Credit Note to appear and complete the fields you need to populate; mandatory fields have red field names and marked with an asterisk (*)

    Complete mandatory and other necessary fields
  • Once all the necessary fields are populated, click the [Save & Authorise] button to create the Credit Note and set its status to ‘Authorised‘.  You’ve now created the Credit Note in EdgeCTP

    Authorised Credit Note; ready for copying to accounting package

Send/Copy the Credit Note to FreeAgent

  • To send the Credit Note to FreeAgent, make sure you’re still connected to FreeAgent, and just click the [Copy to Acct. Package] button at the top of the Credit Note and when asked if you’d like to copy it to FreeAgent, then click the ‘Yes, just do it!‘ button

    Copy Credit Note to FreeAgent
  • Wait for the Credit Note to be copied to FreeAgent, and when the Credit Note refreshes, click the [Go to Acct. Package] button to open a separate tab in your browser and show the same Credit Note now in FreeAgent

    Click ‘Go to Acct.Package’ to view the Credit Note in FreeAgent
  • Check that the Credit Note is correctly represented in FreeAgent

    Copied Credit Note in FreeAgent as received from EdgeCTP

If you want to settle/refund the physical cash (via the bank account) related to the Credit Note and wish to know how to do this, then scroll upwards in this blog and see the Refunding a Credit Note in EdgeCTP section steps.

Get a PDF or Printed Credit Note in EdgeCTP

If you wanted to get a credit note in PDF (for electronic emailing) or printed (for posting a paper copy) versions to clients, then simply:

  • Open the Credit Note from Home > Documents > Financial Documents and find the Credit Note you wish to print/PDF
Output Credit Note
Use [Generate PDF] to get an email or printable Credit Note
  • Click [Generate PDF] and choose Credit Note (UN-SITPRO)
  • The system will download the PDF version of the Credit Note to your local device/computer
PDF version of Credit Note in EdgeCTP
PDF version of Credit Note in EdgeCTP
  • Use the PDF version to email or print on paper

See more on FreeAgent and EdgeCTP

 

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