How to create a credit note

Why create a credit note?

A credit note is required when you have invoiced for goods or services that no longer apply, and you need to reduce the total amount of the original invoice.

Scenario:

You agreed to sell 100 bales of hay to another farmer and sent an invoice. However, you only supplied 80 bales, and the farmer paid accordingly. Since the invoice has already been saved and sent, you must issue a credit note for the remaining 20 bales. Legally, tax invoices cannot be altered once sent.

Steps to create a credit note:

1. Go to Actuals > Tax Invoices.                                                                                                                                                                        

2. Find and open the corresponding tax invoice.

3. Under More Options, click the dropdown arrow.

4. Select Copy as credit note.                                                                                                                                                                                                                                                    

5. A credit note will be created with the same details as the tax invoice. Update the relevant details, such as reducing the quantity or amount.

   • NOTE: Check that the dates are correct, as they default to the date the credit note is created.

   • TIP: Include a note explaining why the credit note is required.

6. Click Preview & Generate to review the credit note. Ensure that:

• • It is clearly marked as a Credit Note.

The original invoice number is referenced (Farm Focus does this automatically).

7. Tick Email to: if you want to send the credit note to the supplier automatically.

• You can also attach supporting documents before generating the credit note. Learn how to add attachments.

8. Click Generate & Send when you are satisfied with the changes.

• • NOTE: The credit note cannot be modified after it is generated.

What happens next?

• The credit note appears in the Needs Action screen, marked with CN.

• A copy also sits in the Tax Invoices tab under Needs Action.

• You can now Match the credit note with the relevant transaction and the initial invoice. Learn more about matching.