This article explains the differing ways that you can apply adjustments to invoice pre and post biling. These adjustments include discounts, adjustments, write-off' and credit notes.
There are two ways to make adjustments to an invoice BEFORE sending to your client.
If your invoice comes to $1,845 for example and you want to change the invoice to reflect $1,800 you can adjust the total of the invoice to become $18500 by adding a fee adjustment to an invoice.
If your invoice comes to $1,845 for example and you want to change the invoice to reflect $1,800 you can add a discount to the invoice before it is sent to the client.
A write-off is performed post -invoice when you are unable to collect monies owing from your client.
|WARNING: If you have an accounting integration with Xero/Quickbooks - you can not perform a write-off as this transaction will not be replicated in Xero/Quickbooks and you will receive an error - Actionstep recommends to proceed with a credit note in this situation.|
For example, you may have an outstanding invoice for $100 with a customer that has been outstanding for over 6 months. You may decide that proceeding with debt collection is not worth the value of time and fees and so you decide to write-off the balance. This means that the invoice is cleared and the funds are not recovered.
A credit note is performed post-invoice and creates a credit against a matter that can be than be applied to an invoice. This type of transaction will also mark an invoice as credited within Xero/Quickbooks.
|This type of transaction will also mark an invoice as credited within Xero/Quickbooks.|
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