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Refunding an Entire Invoice

Refunding Selected Items

Credit and Invoice Again (Correcting Invoice Info)

Correcting Payment Methods with the Credit Note Wizard

Refund Process with Card Payment Terminal Integrations

Fixing Errors on Credit Notes

Frequent Questions

Workflow Customisation Options

What are credit notes?

Credit notes, also known as credit memos or credit invoices, are commercial documents issued by the seller (your business) to the buyer (animal owner). Credit notes are used when a sale has been completed (invoice has been finalised in Provet Cloud), but the invoice needs some corrections, usually reductions (for example, the return of a product).

In Provet Cloud, credit notes look much like regular invoices, but they are always connected to a regular sale invoice or another credit note.

Refunding an Entire Invoice

To explain the core principle, let's examine this simple case. The customer has visited your clinic and purchased a can of food for their dog. Moments later, they realise that it is of the wrong type. They return to the reception and ask this to be switched for another food. In this case, we need to credit the full counter sale invoice we had created earlier, and then we can sell them the correct food.

1. Start the Credit Note Process

Open the invoice page, and find the 'Credit note' button from the actions' bar anchored to the page (stays in place when scrolling). Select the button to start the process.

2. Select the 'Refund all' Option

A dialogue opens, offering three options for doing the credit. In our case, we want to select 'Refund all', as the entire invoice needs to be refunded.

3. Decide Refund All Options

The next step of the credit note process opens. The left side (or top on smaller screens) of the dialogue will show info about the original invoice; the right side has info about payments that can be refunded.

1. Use the setting 'Use original invoice date' to decide whether the credit note will use the original invoice's date or not, in which case it will use the current date.
2. Use the setting 'Create credit note as draft' to create a draft credit note if needed. Draft credit notes can be edited and deleted if needed. Note that payments can't be added to draft invoices at this stage.
3. On the right side, select which payments are to be refunded to the customer.
4. Select the green 'Continue' button to continue. You can also go 'Back' or 'Cancel' the entire process.

4. The Credit Note is Created and Refunded

After selecting 'Continue', the credit note is automatically created and the refund payment is also added to it. You will arrive on the credit note (credit invoice) page, indicated by the blue message at the bottom (see the image below). You'll also notice that the payment is usually with a negative sum here. The process is complete.

Refunding Selected Items

In this case, we'll be using an example where a cat was brought in for vaccination, but due to a conflict with the customer, it was agreed that the invoice would be credited so that 50% of the procedure fees are refunded.

1. Start the Process and Select 'Refund selected items'

Like with the 'Refund all' option, we start the credit note process by selecting the 'Credit note' button on the invoice, but this time, we use the 'Refund selected items' option.

2. Decide Partial Refund Options

The next step of the credit note process opens. The dialogue shows a table that contains invoice rows with checkboxes to select which rows are to be refunded. In our case, we want to create a 50% refund for the vaccination procedure.

1. Use the setting 'Use original invoice date' to decide whether the credit note will use the original invoice's date or not, in which case it will use the current date.
2. Use the setting 'Create credit note as draft' to create a draft credit note if needed. Draft credit notes can be edited and deleted if needed. Note that payments can't be added to draft invoices at this stage.
3. Select the rows you want to credit.
4. Adjust the quantity or the percentual change. In our case, we enter '-50' to refund 50% of the procedure.
5. Optionally, add a comment. In our case, we note down that this was due to a 'conflict.
6. Select the green 'Continue' button to continue. Note that the credit note total is shown on the bottom right. You can also go 'Back' or 'Cancel' the entire process. 

3. Add Payment(s) to the Credit Note

After selecting 'Continue', you'll be directed to the credit note (credit invoice) page. When using partial refunds, payments are not automatically added to the created credit note. This means that you need to manually add the desired payment(s) as the last step.

Select the blue 'Payment' button to add payment and note that it must be with a negative value if you're returning funds to the customer. Otherwise, the invoicing functionality is the same as with regular invoices.

Alternatively, you can transfer the funds to customer prepayments if you are using that function.

With these steps, the process is complete.

Credit and Invoice Again (Correcting Invoice Info)

In this case, we'll be using an example where the original invoice rows are correct, but it turns out that we need to change invoice info that isn't editable after finalisation. For example, a customer pays for the invoice normally but then decides that they would like it to be addressed to their business instead. We will need to fully credit the original invoice and create a new invoice with the corrected payer info.

1. Start the Process and Select 'Credit and invoice again'

Like with the 'Refund all' option, we start the credit note process by selecting the 'Credit note' button on the invoice, but this time, we use the 'Credit and invoice again' option.

2. Decide 'Credit and Invoice Again' Options

The next step of the credit note process opens. The left side (or top on smaller screens) of the dialogue will show info about the original invoice, and the right side has info about payments that can be refunded.

1. Use the setting 'Use original invoice date' to decide whether the credit note will use the original invoice's date or not, in which case it will use the current date.
2. On the right side, select which payments are to be refunded to the customer. Normally, we would select all to refund the original invoice entirely and invoice again.
3. Select the green 'Continue' button to continue. You can also go 'Back' or 'Cancel' the entire process.

3. Edit the Payer Info of the New Invoice

After selecting 'Continue', you will be directed to a new regular invoice page, automatically created based on the original invoice and the credit note. 

Use the blue pen button at the top of the invoice page to edit the payer info. In this case, we want to add the customer's business information so the invoice would be addressed properly.

4. Finalise the Invoice Normally

Once you've done needed edits, you can normally process the invoice - finalise and add payments. With that, the process is complete.

Note that this process creates the credit note and then, technically, it creates a new credit note about the initial credit note, as is marked by the blue message on the final invoice page.

On the customer's page, it will appear as pictured below:

1. This is the initial invoice, tied to the consultation. The link icon on the right indicates that a credit note has been created about this invoice.
2. This is the credit note that refunds the entire original invoice. It has a link on the left side of the invoice button, meaning it is a credit note about the initial invoice, and it also has a link on the right side, meaning another credit note has created about it.
3. This is the final, correct invoice, that is technically a credit note but will appear as a regular invoice.

Correcting Payment Methods with the Credit Note Wizard

Sometimes, you only need to correct the payment method on an invoice. A full credit note is not needed, but you can still use the credit note wizard for that.

From settings, as described below, payment cancellations need to be enabled for this. When enabled, a fourth option can appear on the credit note wizard. You can use this to change payments that were not made with an integrated payment terminal. If cancellations are enabled, you can also change the methods from the original invoice page, which you have to do when there are integrated terminal payments.

After selecting 'Correct payment methods', you'll see a new wizard step with options to decide the change.

1. For each payment, select whether to do nothing, cancel, or change the method.
2. For example, when changing the method, select the new method from the drow-down menu.
3. Add any notes and adjust the date for the new payment if needed.
4. Select 'Continue' to finalise the process.

Refund Process with Card Payment Terminal Integrations

Full Refunds

In case of full refunds, follow the regular process described above, but notice that the option to select the integrated card payment refund is not available on the credit note wizard. Ignore that for the moment and mark any other payment types for refund if needed, and continue with the process.

If your terminal integration allows card payment refunds (reversals), you should complete the reversal from the original invoice page after the credit note is created. After doing the reversal, a new option 'Pay with credit note' appears next to the payment button. You can use that to mark the invoice as paid, and that also marks the credit note as paid. After that, the process is complete.

If your terminal does not allow reversals, you need to find another payment method to refund the sum to the customer (e.g. a bank transfer) and add that to the credit note manually.

Partial Refunds

With partial refunds, you first need to check if the card payment will be refunded in full, because most card terminal integrations only allow full, not partial refunds. If a partial refund needs to be done, you likely have to find another payment method for the refund and add it as a payment to the credit note.

If the card payment is to be refunded fully and your terminal integration allows card payment refunds (reversals), you should complete the reversal from the original invoice page after the credit note is created, and use another, custom payment type to mark this on the credit note.

Crediting and Re-invoicing

This option will not be available when an integrated card payment was used unless prepayments are also enabled. If prepayments are enabled, the integrated card payment will be automatically transferred to prepayments. The initial card payment can be reversed from the original invoice page if the integration allows it.

Payment Corrections

This option won't be available form the credit note dialogue when an integrated card payment was used on the invoice. Use the options on the original invoice if you have payment cancellations enabled and the terminal integration allows it.

Fixing Errors on Credit Notes

First off, it's good practice to create draft credit notes when doing full or partial refunds, at least initially, while getting used to the workflows. With draft invoices, you can completely erase them if you've made a mistake, before finalising them.

When an error has been made when creating a credit note, and it's finalised, a possible solution is to fix the initial credit note with another credit note. On each credit note page, you can also find the blue 'Credit note' button to start the process in various ways described above.

In the end, all initial invoices and credit notes have to have some payment on them, unless the initial invoice is with a total of zero (but in that case, credit notes are not needed anyway). If the invoice has a client connected to it, you can check the client page to get a better overview of the invoice timeline.

For some common problems, see the frequent questions section below.

Frequent Questions

Why are credit notes needed, why can't I edit the invoice or delete it?

Provet Cloud has a restriction against editing or deleting finalised invoices because this is seen as a bad practice from the accounting perspective. Modifying past financial acts is seen as incorrect; instead, new acts must be made to correct past mistakes, and that's where credit notes come into play.

How can I avoid credit notes?

• Finalise an invoice only if you are sure that it is correct. In some cases, it helps to communicate the contents of the invoice to the client first.
• Enable the single-step finalisation and payment workflow. This, in effect, means that you'll be finalising invoices only when you're ready to add payment(s).

I created and finalised a credit note, but I chose the wrong date

1. You can create credit notes about previous credit notes. Do a full refund (credit note) for the initial credit note and also check that the date will be correct (in most cases, the original credit note date). This credit note will usually be with a positive total.
2. Make another credit note about the previous credit note but this time, with the correct, intended date. This credit note will usually have a negative total like the initial credit note with the wrong date.

In other words, we're cancelling the initial, wrong credit note entirely, and then we're doing another, correct credit note. These steps apply to a simple case, and it may be more complicated if payment integrations and partial refunds are in play.

Note that 'Credit and invoice again' won't be an option when crediting credit notes.

I created and finalised a partial refund credit note, but I chose the wrong amounts or percentages

1. Add a payment to the initial (wrong) credit note to make it fully paid, if it's still missing, even if you don't hand out the money yet.
2. You can create credit notes about previous credit notes. Do an identical, full refund (credit note) for the initial credit note. And use select all available payments.
3. Create another credit note about the previous credit note, but this time, enter correct amounts or percentages.

In other words, we're cancelling the initial, wrong credit note entirely, and then we're doing another, correct credit note. These steps apply to a simple case, and it may be more complicated if payment integrations are in play.

Note that 'Credit and invoice again' won't be an option when crediting credit notes.

Workflow Customisation Options

Credit Note Date Logic

Location: Settings > General > Department > Department settings.

You can select the way credit note dates should be set by default. However, the resulting date may be restricted by the setting 'Earliest possible date for financial events'.

Credit Note Quantity Limit

Location: Settings > General > Department > Department settings.

You can select whether the credit note row quantity cannot be higher than the corresponding original invoice row quantity (setting enabled) or not (setting disabled).

Enable Automatic Insurance Payment Refunds During Credit Note Finalisation

Location: Settings > General > Department > Department settings > Insurance settings.

This setting allows you to choose whether insurance payments should be automatically refunded when credit notes are created (setting enabled) or not (setting disabled).

Use Current Date for Automatically Refunded Payments

Location: Settings > General > Department > Department settings > Insurance settings.

With this setting, you can choose whether the crediting (current) date is used for automatically refunded insurance payments (setting enabled), or the date of the original payment/invoice is used (setting disabled).

Enable Payment Cancellations

Location: Settings > General > Department > Department settings.

This setting allows payment cancellation and changes in general, as described in the instructions above.

See Also

Insurance Claims

Prepayments

Payment Terminal Integrations in Provet Cloud

Single-step Invoice Finalisation Workflow