Credit notes: full and partial

When to credit in full, when to credit in part, and how each choice affects totals and tax. Credit notes is clearest when approached through credit note as a measured correction. For credit notes, the original invoice reference and the credited amount settles the outcome. For credit notes, the original invoice reference and the credited amount absent means rejection. For credit notes, the original invoice reference and the credited amount mapped wrongly means the wrong meaning. This guide keeps coming back to one check for credit notes: state the credited amount and its original.

The route stage of credit notes is Validate. At Validate, the original invoice reference and the credited amount is what comes next. For credit notes, a Validate decision cannot be fixed later. For credit notes, a Validate decision cannot be fixed cheaply. Check the original invoice reference and the credited amount for credit notes before going further.

Trace the invoice as a record through credit notes. At Validate, the record for credit notes holds the original invoice reference and the credited amount. Answer the original invoice reference and the credited amount for credit notes supported by evidence. Then the rest of validation, errors and corrections gets easier. Then the rest of credit notes gets easier to check.

Name the record before the system for credit notes. Systems change, yet the original invoice reference and the credited amount for credit notes stays. Providers change, yet the original invoice reference and the credited amount for credit notes stays. Formats change, yet the original invoice reference and the credited amount for credit notes stays. For credit notes, ask which record a system produces. For credit notes, ask which record a system accepts. For credit notes, ask which status evidence it returns.

The data that counts most for credit notes is the original invoice reference and the credited amount. That is no slogan for credit notes. It is the thing the next credit notes check examines. If the original invoice reference and the credited amount for credit notes is absent, expect rejection. If the original invoice reference and the credited amount for credit notes is unclear, expect rejection. If the original invoice reference and the credited amount for credit notes is badly formatted, expect rejection.

Check the original invoice reference and the credited amount as the receiver will read credit notes. For credit notes, screen correctness alone is not enough. For credit notes, file correctness alone is not enough. For credit notes, mapping correctness matters as well. Start with the mapping table for credit notes at the start. Then use the receiver test for credit notes next. Then use a sample invoice for credit notes last.

For credit notes, validation runs through three separate gates. Credit notes the structure gate comes at the start. Credit notes the business rule gate comes next. Credit notes the receiver rule gate comes last. Each credit notes gate produces its own failure message.

A credit notes rejection must state its rule. A credit notes rejection must state its field. A credit notes rejection must state the value sent. A credit notes rejection must state the value expected. Lacking those facts, a credit notes rejection is only a delay. Send back a credit notes rejection with that request attached.

The evidence for credit notes is what survives afterwards. Keep the credit notes invoice exactly as exchanged. Keep credit notes status messages beside it. Keep any credit notes correction attached to it. An auditor for credit notes will request that set.

The usual credit notes failure is simple. For credit notes, state the credited amount and its original was left out. For credit notes, the receiver discovered the problem. For credit notes, the sender now has to correct it. For credit notes, the sender now has to resend it. For credit notes, the sender now has to explain it.

An illustration, using round numbers only, for credit notes: A seller sends 50 invoices for credit notes. 1 fail on the original invoice reference and the credited amount for credit notes. Checking the original invoice reference and the credited amount first for credit notes takes minutes. A credit notes receiver rejection takes days. Sometimes a credit notes rejection can take a payment cycle. That is why credit notes keeps repeating one check: state the credited amount and its original.

Three checks come before acting on credit notes, check three things at the start. First, the jurisdiction and transaction for credit notes. First, the buyer and country for credit notes. Next, OpenPeppol: Billing validation rules for credit notes today. Finally, the credit notes buyer requirement set down in writing.

A guide on credit notes sets out those questions. A guide on credit notes will not settle a specific transaction. This guide on credit notes offers general information, nothing more. This guide on credit notes is no advice about one invoice. For one specific invoice about credit notes, check OpenPeppol: Billing validation rules. For one specific question about credit notes, consult a qualified adviser.