credit note

Introducing Credit Notes in Vtiger CRM

Every once in a while, you will owe a customer a refund for something that you’ve already invoiced them for. Maybe on that invoice you added a 5% discount instead of a 10% discount as promised in a conversation. Or you listed the wrong city on their invoice, which set the tax rate to 10% instead of 8%. To start the process of crediting them back the money, you’ll want to create a credit note.

Vtiger now allows you to easily manage credit notes right within the CRM. With just a few clicks create a credit note specifying the amount you owe to your customer. And while invoicing the customer next time, apply the credit note on the invoice to automatically adjust the billing amount. You can apply a credit note on a customer’s invoice multiple times until the money you owe is completely paid off.

When you manage credit notes in Vtiger, you can:

Create a credit note from an invoice on a click

Credit notes from invoice

When you invoice a wrong customer or miss a shipment, you have to refund the entire invoice amount. In such cases, on a click, you can create a credit note from an invoice. When you choose to create a credit note from an invoice, Vtiger automatically prefills the order information from the invoice. Since the customer receives full refund, you don’t have to make any changes to the credit note. Once a credit note is created, you can reconcile it with the invoice to balance the transaction. This process not only saves you data entry time but also eliminates any manual errors.

In case of partial credit, Vtiger lets you edit the quantity and price in the credit note. Let’s say a customer cancelled 40% of the order. So, while creating the credit note from the invoice, you can reduce the quantity value to reflect 40% of the order.

Automate credit note approvals

Credit notes issued against huge amount of money often need manager’s approval before it is sent out to the customer. With Vtiger’s approval process in place, you can manage the entire credit approval process with ease. All you have to do is take a minute to set up approval workflow on credit notes. Once the workflow is in place, every time the conditions are met, Vtiger automatically routes the credit note to the approver set in the workflow. This process ensures that no credit note is lost under a pile of unread emails.

Credit note approval

To better understand this scenario, let’s consider an example. Let’s say, to issue a credit note worth $5000 or above, you have to get approval from level one manager. And to issue credit note worth $10000 or above you, need to get approval from level two manager. For this, you have to configure approval workflow defining the limits and approvers. Once this is done, let’s say you create 2 credit notes of value $8000 and $12000 each. Vtiger automatically routes the credit note of value $8000 to the manager at level one and the credit note of value $12000 to the manager at level two. Since the concerned manager receives the approval notification in real time, she or he can take required action quickly.

Generate report on issued credit notes

credit note report

Vtiger lets you generate custom reports on credit notes to understand most common reasons for creating a credit note, invoice to credit note ratio, number of credit notes generated every month or year, and more. With the insights you get from these custom reports, improve your internal process. For instance, you can generate a detailed report to analyse the reason for creating credit notes in a month. If you see that more credit notes were created due to delay in delivery, then you can take measures to reduce the shipping delay or increase the delivery time to ensure that the orders reach customers in time. Or, if you find that billing errors is the top reason for generating credit notes, then you can investigate deeper to understand the reasons for these billing errors and provide necessary resources and training.

Want to learn how to create a credit note in Vtiger CRM? Read the documentation. Feel free to drop a comment if you have any questions related to credit notes or anything else in Vtiger CRM.


Enjoy more email credits when you add more users in Vtiger

Here at Vtiger, we understand that emails are still the most preferred way to start a conversation and drive relationships forward. We also know that ...

How to send a compliant email campaign after GDPR’s enactment

With GDPR deadlines nearing, we understand that many marketers are worried about connecting with their leads and customers without breaking the law. GDPR’s enactment ends ...
Mother's day

A working mother’s guide to a successful career

We understand that being a working mother is tough. Often, new mothers get stuck in career limbo. Juggling family and career, they try hard to ...

GDPR and CRM (Part 2): Introducing Vtiger’s new GDPR and privacy tools – bringing Zen to managing consents at scale

Part 1 of our series on GDPR and CRM (What Is GDPR and How Does It Affect CRM?) explained the basics of GDPR - from ...

GDPR and CRM (Part 1): What Is GDPR and How Does It Affect CRM?

If you haven’t been hiding under a rock for the last few months, you’ve probably heard a lot about GDPR. About how if GDPR were ...

Vtiger CRM integrates with Azure AD to support secure single sign-on

We are excited to announce a new integration that allows users to securely access Vtiger CRM from anywhere with ease. Vtiger CRM integrates with Azure ...
opportunity line item inVtiger

Improve forecasting accuracy with opportunity line items

Every opportunity has an estimated revenue value. But, without the correct line items this value is just a guesstimate. To ensure that you can accurately predict ...

Deliver great service and delight customers with Vtiger’s work orders

If your businesses generate dozens of work orders every day to get things done, then we have good news for you! You can now generate ...
Untitled Design (1)

6 unique challenges that women in business face and how to overcome them

There is no doubt that women are making great strides in the business world. Studies show that, women are better at taking calculated risks, less ...
Gmail addon image for blog

Super-charge your Gmail Inbox with the Vtiger Add-on

At Vtiger, we understand that email is at the heart of all your communication, where you follow up with customers, send quotes and presentations, pacify ...