Tag Archives: Invoice

How to record a credit note?

Software: MoneyWorks accounting software

MoneyWorks uses the reverse sales invoice (negative invoice) method to record a credit note. It converts the sales invoice into a credit note by clicking on the reverse button on the sales invoice transaction.

Upon converting, it changes the quantity into a negative value, multiplying the unit price to derive a credit amount (negative) if you are using products or services (A negative net amount if you are using a ledger account instead). Of course, you can also manually enter a negative quantity instead of clicking the reverse button to create a credit note.

Credit Note (a.k.a. Negative Invoice)
Credit Note

The credit note debits the sales and credit accounts receivable, which later offset the outstanding invoice.

You have an option of offsetting the credit note with an invoice from the Command menu (via a contra method) or when receiving payment from the customer. Both work, but offset during received payment is preferable (The contra feature is not for contra between a creditor and a debtor owing, but the credit note and outstanding invoice of the same debtor).

Credit Note (a.k.a. negative invoice) shared the same running sequent number as the sales invoice. You may manually change the reference number but try keeping the system-generated number to reduce confusion or mistake.

You can use the invoice form to print the Credit Note by amending the formula of the form tile from a simple text field to an if( ) statement:

if(Transaction.gross < 0, “Credit Note”, “Invoice”)

It prints as a ‘Credit Note’ when the invoice gross is smaller than $0 and ‘Invoice’ when it is $0 or greater. It helps reduce the number of forms you require to manage, ease the operation and reduce mistake made.

MoneyWorks, as a hybrid system, allows sharing of data in the cloud and uses its feature-rich desktop app. Book a demo to find out how to use MoneyWorks to manage your business finance.

QBO – Online Delivery Invoice

An invoice is an official document from the seller to the buyer. It can be:

  • Handwritten
  • Print from a word processor, spreadsheet, or accounting software
  • Digital copy (e.g. PDF)
  • E-invoice
  • HTML format (e.g. QBO’s Online Delivery)

Digital copy is to save the invoice into a digital format (e.g. PDF – Portable Document Format) and email it to the customer. Digital invoice has become common these days when most people are working from home. 

The e-invoice, on the other hand, refers to electronic invoicing. It is an electronic document created, exchange and process between businesses. The accounting software generates the invoice, send it to the e-invoice network (e.g. PEPPOL – Pan European Public Procurement On-Line) via the access point, and deliver it electronically to the customer. You may consider subscribing to Link4 (the e-invoice access point provider) if you are currently using QuickBooks Online (QBO). 

Online Delivery is a term used by QuickBooks Online to deliver an HTML formatted invoice via email. It tracks the progress from the moment the customer opens up the email to making payment. Although it is HTML formatted, the recipient can print a copy for filing, or you can consider attaching a PDF copy to benefit those who prefer to receive invoices in a traditional invoice format.

How to set up Online Delivery in QBO?

QuickBooks Online account and settings for Online Delivery Invoice

Sign in to your QuickBooks Online account, click on the Gear icon and select Account and Settings from the list. Then, go to the Sales tab and scroll down to the Online Delivery section to turn on the feature. 

Send an invoice.

Then, click on the Save and Send button on the invoice will email a copy of the invoice to the customer in HTML format. The invoice activity (e.g. when the customer has opened up the email) tracks at the bottom of the invoice.

QBO - Online Delivery Invoice
Online Delivery Invoice
QBO - monitor the invoice progress
Monitor the invoice progress

QuickBooks Online is a small business accounting software. Sign up for a demo to find out how to leverage cloud-based accounting software.

QuickBooks Subtotal item

Software: #QuickBooks Desktop accounting software

Subtotal is an item type in QuickBooks which allows the user to have a section total for the products and services they sell. For example, you have a list of products and services on the sales invoice which you like to show the total value of the products sold; you can insert the Subtotal item after the last product to show a total of the products sold before continue with the service item or give a discount.

QuickBooks Subtotal

It is common for project sales invoice to have multiple subtotal items breaking down the services and products. A software developer may breakdown the invoice by software licenses, development and support from various phases. The invoice from a renovation firm may breakdown the invoice by carpenter work, disposal of fittings, design, wet work, etc. As a client, you will like to see the total you paid for each category such as the cost of fabricating the cabinets, the total for the wet work done on each room, etc.

QuickBooks Invoice

QuickBooks has Cloud-based ( #QBO – QuickBooks Online) and Desktop version which built for small businesses. Sign up a demo to find out how to use QuickBooks to manage your business finance.