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How to record and apply a credit note

  • Updated

Record a credit note in Weel and apply it to that supplier's invoices, so you only pay the balance. New to Accounts Payable? Start with Understanding Accounts Payable.

Before you start

  • You'll need the Suppliers: Update permission to record or void a credit note. Owners and Admins have this by default.
  • Check who approves credit notes under Approval Rules > Credit note rules. By default, it's the account Owner.

Record a credit note

  1. Go to Accounts Payable > Credit notes and click New credit note.
  2. Select the supplier, then fill in the Credit date, Original invoice and Reason (optional). The Credit note number fills in automatically, and you can change it.
  3. Add the credit line items, each with a category, description and amount, and choose the Tax option.
  4. Click Attach files to add the credit note document.
  5. Click Submit for approval.

You can also record a credit note from Make a payment on the Accounts Payable page, or from the Credits tab on a supplier.

Once approved, the credit note moves to Available, and the credit shows as Available credit on the supplier.

Apply credit to an invoice

  1. Open or create an invoice for that supplier.
  2. Weel applies the supplier's available credit automatically in the Credits section, oldest credit note first.
  3. Change the amount, click Remove to take a credit off, or click Apply to add one.
  4. Save the invoice.

The invoice total updates to show the reduced amount. Any credit left over stays on the supplier for their next invoice.

To take credit off an invoice from the credit note instead, open the credit note, find the invoice under Applied to invoices, and click Remove.

What happens next

  • The invoice is paid at the reduced amount, including in a batch payment.
  • If the credit covers the full invoice, it's marked Paid and no payment is sent.
  • The remittance notice shows the invoice amount, each credit applied and the amount paid.

Things to remember

  • Credit is locked once an invoice is approved. You can't add, change or remove it after that.
  • You can't apply credit to an invoice that's already paid.
  • You can only edit a credit note while it's Pending approval.
  • To void a credit note, click Mark as void. You can only void a credit note that's Pending approval or Available with nothing applied.
  • A declined credit note can't be resubmitted. Record a new one instead.
  • Credit notes are approved in the Weel web app only.

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