credit note

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.

wpDiscuz
Customer retention

5 customer retention tips to grow your business

Whether you are a start-up or a Fortune 500 company, retaining customers is your magic potion to run a profitable business. While customer acquisition is ...
19-11 Md prs

New Mixed License Pricing: Pay for what your users really use

In today's increasingly competitive business environment, staying ahead of the game is getting harder. In addition to needing to market everywhere, and provide competitive products ...
enterprise-feature

Vtiger’s Most Awaited Release: Sales Enterprise Edition

Each year a multitude of organizations spend huge sums of money trying to find better ways to grow sales. This in itself is a testimony ...
global-picklist

Save time and prevent data-mapping errors with Vtiger’s multi-module picklists

Imagine a scenario where a set of values need to be common to a couple of picklists across different objects or modules. For instance, the ...
gpi_customers_choice_18

Vtiger recognized as a 2018 Gartner Peer Insights Customers’ Choice for Sales Force Automation

We are excited to announce that we have been named a Gartner’s 2018 Peer Insights Customers’ Choice for Sales Force Automation. All of us here ...
blog-thumb-gmail

Get the most out of your inbox with Vtiger’s new 2-Way Gmail sync

Although we live in the social media era, emails are still the primary communication channel for most organizations. So, it is only natural that a ...
award-blog-new

Vtiger recognised as “One to Watch” and voted 3rd best in cloud CRMs!

It's always a delight to receive great feedback from our customers. It's our way of knowing that our efforts are being acknowledged and loved. Excitingly ...
Overcome_sales_stress

Sales stress: 5 ways managers can help their team

If you’re a sales manager, we understand that you manage a team that constantly works under high pressure. Every time you set an ambitious goal ...
Vtiger_Inventory_add-on

Automate and simplify your inventory management process

If inventory management is an essential part of your business, we have good news for you! We’ve built a new Inventory Add-on that helps optimize ...
Prospecting_GDPR

How to prospect and reach out to leads in the post-GDPR era

Ever since the enactment of GDPR, the way sales professionals prospect and reach out to their potential customers has changed drastically. Your sales activities can ...
loading
Copyright 2018 Vtiger | Privacy Policy