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Adding/Reconciling Credit Notes

When you cash-in an invoice it will be marked as paid in your accounting platform and this payment should never be removed.

If you do need to apply a credit note you can follow the steps below depending on the circumstance.

Credit note needs to be applied and customer has not yet paid:

  1. Create Credit Note for x amount for customer
  2. Contact Marmalade with a copy of the credit note and pay back the credit note amount
  3. When the credit amount is paid back to Marmalade it should be reconciled to the credit note in the form of a 'Cash Refund'
  4. When Marmalade receives the payment for the credit note amount we will reconcile the credit note amount to the invoice reducing the balance that will show on the customer's statement
  5. When the customer makes the payment we will apply the residual balance to the invoice and mark it as paid

Customer has paid less than the invoice invoice amount and the balance needs to be credited:

  1. Create credit note for x amount for customer
  2. Contact Marmalade with a copy of the credit note
  3. Once confirmed with Marmalade this will then be logged and added to your Marmalade Balance
  4. You will be able to settle this credit note amount the next time you cash-in, payments may be used if this is a long overdue invoice or has not been repaid after 10 business days.
  5. Once settled you will then be able to apply the credit note to the corrective invoice that will generate to the Marmalade Balance Settlement contact and reference the invoice (this invoice should not be voided as it is used to balance the Marmalade Clearing Account).

Customer requires a copy of the invoice with the credit note applied:

If a customer requires a copy of the invoice with the credit not attached then the original cashed-in invoice will need to be repaid to Marmalade (as we don't accept changes to an invoice after it has been cashed-in). This can be done by following the steps below:

  1. If the invoice is already overdue this can be done from the 'Invoices' page by clicking the 'Add Details' button and selecting "Error on Original Invoice"
  2. Once done this will be added to your Marmalade balance and can be settled via cash-in
  3. You can then raise a new copy of the invoice in Xero, however, it's important that when the invoice is raised it is for the same amount as the original invoice and should be allocated to the Marmalade Clearing Account (as this will then net back to zero when the invoice is settled via cash-in)
  4. You can then apply the credit note to the invoice created in Step 3.
    Note: When the original cashed-in invoice is settled a corrective invoice will be created to the Marmalade Balance Settlement. This is created to ensure your accounts reconcile as per step 3 above. Because you've done this process manually this invoice will need to be voided.

If there happen to be any variations to these two instances, or you need further assistance with this, please do not hesitate to reach out to  for more information.

Last Updated: 6 October 2023