Credit Notes

Credit Notes represent amounts your team has granted to your customers to lower that amount owed to you related to line items on Invoices previously created. 2 main ways Credit Notes are created:

1. Downsell Amendment Processed impacting already invoiced period(s). For example, a customer purchases 10 seats of a product for 12 months and is invoiced upfront. 2 months into the term, the customer requests to reduce to 8 seats of that product for the remainder of the term. To effectuate this, you Amend the Contract to reduce the quantity of that product. Upon Processing the Amendment Quote, a Credit Note is created.
2. Credit Note issued from Invoice. For example, a customer purchases 10 seats of a product for 12 months invoiced upfront. At the end of the 12 months, the customer expresses to you that the they only used 9 seats throughout the year. As a good will gesture, you manually Credit Note for 1 seat.

Credit Notes are represented in documents with line items that represent the products, quantities, and dates from which they were generated as well the Credit Note's application(s) to Invoices. These documents may be shared with your customers.

When the Credit Note has Amount Remaining >0, it is automatically applied to future Invoices created on that Bill Group.