Support for credit notes

[mathias]

Hi!

I have noticed this being mentioned in a couple of posts by others, but I haven't seen it as an actual feature request.

I would be very happy if support for credit notes was included in a future version of WHMCS, since a lot of countries require a credit note to be generated to reverse an invoice (it can't just be cancelled). It would be a GREAT help to many people, I am sure.

I imagine the implementation would be fairly simple:

• - Create a new invoice type almost identical to a normal invoice.
  - The title of the invoice is "Credit note #" instead of "Invoice #" (credit notes require their own number).
  - The credit note has a reference to the invoice being reversed (as in "For invoice #XXX)
  - The total of the credit note is a positive number, but it may be negative in the database, so that it is correcting the balance without much other code needing to be changed.
  - The credit note does not necesseraly need a product list or a payment method. :wink:

I imagine a button on an invoice page (together with "mark as unpayed" etc.) saying "Create credit note". Clicking the button automatically cancels the invoice and generates a credit note.

I am willing to help with the development of this feature if such help is wanted.

[ukicnet]

I would like to see this too, I we would need for correct accounting purposes.

[LifeGuard]

I like this feature request... I would love to see this in WHMCS

[rodolfo]

i want it too.

[trine]

I think this is needed too

[Joweb]

Yes I agree this is needed.

[Tech Entrance]

Agreed

[Tomas]

I'd also like to see this integrated.

[mathias]

Hi!

It's some time since I started this thread. I am wondering if there's any more concrete plans for implementing this in WHMCS. As ukicnet says, this feature is needed for correct accounting. It is a requirement in many countries.

As I originally sketched out, I think implementing the feature should be pretty easy. I still stand for my offer of help, and could also help sponsor the feature.

I currently create credit notes by creating WHMCS PDF invoices and changing them in Adobe Acrobat Professional, subsequently deleting them in WHMCS. If I forget to delete it, the customer receives erroneous payment reminders. Not very good...

[polarbear]

Mathias,

I think proforma invoicing was created for this exact purpose (it's called something like continuous numbering of paid invoices in the admin part of WHMCS). This has its advantages and drawbacks:

+ In countries where the company has to pay VAT based on the invoices created (not based on actually paid invoices), proforma invoicing does not make your company liable for the VAT on the proforma invoices, only the ones that are paid later on.
+ For unpaid invoices, there is no need for creating credit notes
- If your business model include sending overdue invoices to a collection agency, you cannot use proforma invoicing, as a proforma invoice is not a legal document in that regard.

I agree it's not the optimal solution, but it might be useful for you. Check the manual for instructions on setting up.

Regards,
Bjorn

[mathias]

Hi Bjorn!

I'm aware of the numbering of payed invoices, but they don't work for me at the moment. :-/

• My accountant requires the invoices to be registered for the month in which they were created, which won't work if the invoice is payed in another month. Cancelling those invoices require a credit note.
• If I create an invoice manually I can just delete it, as if nothing has happened. But if WHMCS automatically sends out an invoice with an error, it sometimes happens that the customer has already forwarded it to his accounting department. In those cases I must usually have a credit note.

[polarbear]

Mathias,

I don't know the legal requirements for your country, but if an invoice is generated as a proforma invoice, it is generally not a legal sales document, hence more of a quote ("offer for sale"). Since the invoices are not legal documents, I would think there would be no obligation for you to register the sale in the month of which that quote was generated. Heck, if you want, you can change the layout of the proforma invoices to read exactly which title you want, call it proforma, quote or whatever.

In other words, the sale don't officially take place until the proforma invoice has been paid for, upon which the document will be converted to a different numbering series, which in turn again should fullfill all legal requirements in many EU countries.

Anyway, the legal requirements will be different from country to country and as said, I agree with you that we should be able to generate credit notes, but until that option is there, I'd have another chat with the accountant if I were you, making sure that he understands that the initial "invoice", if generated as a proforma document, is not to be considered a legal sales document, and see if that changes anything in terms of which month to register sales and so on.

Regards,
Bjorn

[eugenevdm]

I voice my support for credit notes.

[HostRW]

I would like credit notes too. They would indeed be neccesary for accounting/tax purposes.

[ukicnet]

In UK if i create a invoice I need to pay custom the vatable value unless i write off the invoice as unpaid. to show I have written off the invoice, customs need to see a credit note to show that the invoice can no longer be collected.