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

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How to create a Credit Note in EdgeCTP FreeAgent
Creating a Credit Note in EdgeCTP and send to FreeAgent

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 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 NOR sent to the client, then you can simply cancel the Invoice 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 got an invoice that you’ve copied to FreeAgent, and now you want to cancel it with a credit note.

Find the Invoice to Cancel in EdgeCTP

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 tab: Documents > Financial Documents 
  • The ‘Financial Documents‘ dashboard will appear, choose the ‘Invoice‘ tab’ and search for an invoice that has been authorised and you wish to cancel + New Financial Docs‘ and from the drop down choose ‘Commercial Invoice‘ (if you wanted to create a Standard Accounts Invoice, then choose ‘Standard Accounts Invoice‘ instead)
Create a Commercial Invoice
Choosing Commercial Invoice
  • The invoice form/template appears ready for filling in.  You can switch on/off the ‘Help Text‘ if you need assistance with knowing which fields must be completed.  Mandatory fields on an invoice are marked in red headings and an asterisk.  Nevertheless, EdgeCTP will auto-populate as many as possible, and validate everything  once you are complete, so this should be pretty straight forwards
  • For an Invoice you MUST fill-in as a minimum:

    • Check the Invoice Date is correct, usually set to the current day
    • Check the Invoice Due Date is correct, usually set to 30 days (depending on your settings)
    • Check the Invoice Currency is correct, usually set to your base currency and you can ‘set‘ to another + adjust the foreign currency exchange rate as required
    • Check the Seller Details (your firm’s name + address) is correct, or ‘change‘ as required
    • Receiver/ Consignee Details of Organisation or Person Name (i.e. who this invoice is for).  Usually, put in the name of the Buyer or firm buying your goods in this Receiver/ Consignee Details section.  If you’ve already got the Buyer’s details saved in EdgeCTP (i.e. you used them before in EdgeCTP) then their details become available for you to select and auto-fill the rest of the fields.  There’s an option to ‘+New Person‘ or ‘+New Org.‘ if you want to create brand new contact entries in EdgeCTP’s CRM component

      Complete Receiver Details in EdgeCTP
      Complete Invoice Receiver/Consignee Details
    • Otherwise, complete the remaining address fields of the Receiver/ Consignee Details i.e. Country and Address Line(s) etc.
    • For Commercial Invoices only, check and complete the Country of Destination
    • For Commercial Invoices only, check and complete the Payment Methods and Delivery Terms (Incoterms 2010)
    • For Commercial Invoices only, add the Shipping Marks (external identification marks on the consignment)
    • Add the Product Detail + Description line(s) for the product/service being charged for in the Invoice. If you had previously created the product, then by simply typing the name or number of the product in the Product ID field, EdgeCTP provides a selection, and once selected most of the fields are auto-populated; check that the Account is set correctly or change accordingly (these will be accounts sourced from FreeAgent); check the Units in Pack are correct and/or adjust as necessary; set the Quantity to the ordered amount; check and/or adjust the Tax % appropriately (again these are sourced from FreeAgent); if required, add any additional Product Detail + Description line(s)

      Product Detail Line when Creating an Invoice
      Product Detail Line
    • Check that the Invoice Total is correct, or adjust related values above the Invoice Total to set the Invoice Total amount accordingly
    • For Commercial Invoices only, check and/or change the Place of Issue/Signing is correct, usually the city/location of the Seller’s (your) address
    • For Commercial Invoices only, check and/or change the Date of Issue is correct, which is usually set to the current day
    • Optionally, complete any other fields that you think would be appropriate (e.g. Gross Weight; Net Weight; Cubic sizing; Delivery and Other Charges etc.)
    • Once complete, scroll or jump to the top of the Invoice and click the [Save & Authorise] button, which will save the invoice into EdgeCTP, and depending on if you have set 4-eyes checking on, EdgeCTP will route the invoice to another person (usually your colleague, manager or supervisor) for checking before setting the invoice status to authorised, meaning it’s good to send to the client (Buyer/Consignee)

      Saving & Authorising and Invoice in EdgeCTP
      Saving & Authorising the Invoice
    • If a confirmation box pop’s up, you can type in a short comment (optional) and click [Save] and you’ll have an authorised invoice, good for sending to FreeAgent (see next section)

      Authorised Commercial Invoice in EdgeCTP
      Authorised Invoice in EdgeCTP
    • That’s it you’re done creating the invoice in EdgeCTP; now let’s send it to FreeAgent

Sending an Invoice to FreeAgent

  • If the invoice you wish to send to FreeAgent is not open, do so by first finding it in the Documents > Financial Documents dashboard and open it in Edit mode (click the pencil icon)
  • If FreeAgent is not already connected with EdgeCTP, a warning message will appear and you can click on the ‘here‘ link to establish a connection between FreeAgent and EdgeCTP
  • The invoice appears with a status of either authorised or sent (meaning already sent to the Client/Buyer … NOT to be confused with sending to the accounting package)
    Copy to Accounting Package Button

      Copy to Accounting Package Button
  • EdgeCTP internally keeps track of if the invoice has been sent to FreeAgent or not, which means if an invoice has NOT been sent to the FreeAgent then the [Copy to Acc. Package] button is shown, and you simply click it to show a pop-up box asking for a confirmation to copy the invoice to FreeAgent … click [Yes – Just Do It!].  After a few moments, a few messages will appear confirming the invoice has been sent to FreeAgent and the invoice reappears (no status change takes place)

    Confirmation to Copy Invoice to FreeAgent from EdgeCTP
    Confirm ‘Yes – Just Do it!’
  • Once the invoice has successfully sent to FreeAgent, then the [Go to Accounting Package] button appears, which when you click it will open up FreeAgent in a separate browser tab (if asked, login to FreeAgent)

    EdgeCTP Go To Accounting Package Button
    Click ‘Go to Accounting Package’ to open FreeAgent
  • The FreeAgent version of the same invoice will appear in the FreeAgent tab of your browser

    FreeAgent Invoice received from EdgeCTP
    FreeAgent’s invoice as received from EdgeCTP
  • You can toggle between the two tabs to switch between FreeAgent and EdgeCTP, and the invoice numbers + other details should be the exact same, which saves your rekeying data between EdgeCTP and FreeAgent.
  • Since, we’ll do the settlement of the invoice in EdgeCTP, let’s close the FreeAgent tab for now by pressing the ‘X’ on the right of the FreeAgent browser tab, which will bring us back into EdgeCTP ready to for settlement (next section)

    Close FreeAgent tab
    Press ‘X’ on the FreeAgent tab to close it

Settling an Invoice

In this section, we’ll learn how to settle an invoice in EdgeCTP and see it automatically echoed in FreeAgent.  A settlement is where monies are paid towards an invoice total to clear any outstanding amounts.  Settlement can be in full (i.e. clears the full invoice amount) or in part settlement (i.e. only part of an invoice amount is paid).  Let’s try both and see this reflected in FreeAgent and EdgeCTP seamlessly.

  • If not already done so, open the invoice in EdgeCTP that you wish to settlement (either part or full) by first finding it in the Documents > Financial Documents dashboard and open it in Edit mode (click the pencil icon)
  • If FreeAgent is not already connected with EdgeCTP, a warning message will appear and you can click on the ‘here‘ link to establish a connection between FreeAgent and EdgeCTP
  • The invoice appears and the [Go to Accounting Package] button is available, which means that the invoice has been sent to FreeAgent, click the [Settlement] button on the top left of the invoice page and choose either ‘Part Settlement‘ or ‘Full Settlement‘ – for this example we’ll go with Part Settlement, so as to demonstrate the complete settlement functionality with FreeAgent

    EdgeCTP Invoice Part or Full Settlement Options
    Invoice Settlement Options
  • On the Confirmation pop-up, set the Payment/Settlement Amount by typing in a value less than or equal to the Total Amount and see the Remaining Balance (once you’ve clicked on a different field); click [Save] once done

    EdgeCTP Part Settle an Invoice into FreeAgent
    Part Settle an Invoice with a remaining balance
  • Once the settlement amount has been processed by EdgeCTP, the invoice returns with a different status of either Part Settled or Fully Settled (depending on what you chose earlier)

    Invoice Part Settled in EdgeCTP
    Invoice Part Settled – note the Invoice Number of 351
  • Now click [Go to Accounting Package] to open FreeAgent and see if the settlement amount was also echoed in FreeAgent (a new FreeAgent browser tab appears with the FreeAgent version of the invoice being shown – if required to login to FreeAgent, just do so)

    EdgeCTP Settlement Reflected in FreeAgent
    EdgeCTP Settlement Reflected in FreeAgent – note for Invoice Number 351 too
  • Notice the Amount Due on the FreeAgent invoice is a reflection of the settlement amount (i.e. Less Payment received in EdgeCTP)
  • To see the settlement also flow from FreeAgent to EdgeCTP, let’s do a settlement whilst we have the invoice open in FreeAgent.  Do the following steps in FreeAgent:

    • Scroll toward the bottom of the FreeAgent invoice until you see the Receive a Payment section
    • For the Amount Paid entry, which should be the balance of the invoice due, either change it to a lesser amount or leave it as the same as the Amount Due
    • Set the Date Paid to today (or when the payment was received)
    • Set the Paid To the appropriate Account e.g. Business Bank Account
    • Add appropriate text for the Reference field
    • Click [Add Payment]

      Invoice Settlement in FreeAgent
      Full Invoice Settlement in FreeAgent
    • FreeAgent then shows a green message as confirmation of Payment Received; in the green message box click ‘View Invoice‘ to see the invoice in FreeAgent once again

      FreeAgent Payment Received for EdgeCTP Invoice
      FreeAgent Payment Received for EdgeCTP Invoice – click ‘View Invoice’
    • Notice the Amount Due of 0.00 (if you settled the full Amount Due in the previous step)
    • Settled Invoice in FreeAgent originally from EdgeCTP
      Settled Invoice in FreeAgent originally from EdgeCTP  
    • Now click the ‘x‘ on the top browser tab for FreeAgent to close the FreeAgent browser tab and reveal the EdgeCTP invoice once again

      Close FreeAgent tab
      Press ‘X’ on the FreeAgent tab to close it
  • To see that the FreeAgent settlement amount is also automatically reflected in EdgeCTP, with the relevant invoice open (you may need to refresh the page – click on the reload icon next to the address bar of your browser), scroll down to the bottom of the page and view the Settlement Receipts, which should be the same as that in FreeAgent
  • Invoice Settlement Balance in EdgeCTP
    Invoice Settlement Balance in EdgeCTP – reflecting FreeAgent
  • If you jump back to the top of the Invoice page in EdgeCTP, and if you had settled the invoice in full, then the Invoice Status would have changed to Fully Settled too
Invoice Created in EdgeCTP Fully Settled
Invoice Created in EdgeCTP Fully Settled

See more on FreeAgent and EdgeCTP

 

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