When an invoice is cashed-in, Marmalade marks the invoice as ‘Paid’ in your accounting platform, as Marmalade has paid the invoice to you in advance. Occasionally you may need to add a credit note to a cashed-in invoice if there are changes that need to be made to an invoice. Some accounting platforms (particularly Xero) will not allow you to add a credit note to an invoice that has been marked as paid. Marmalade wants to make this an easy process for you.
I created a credit note in my accounting platform, what do I do?
If you intend to link a credit note to a cashed in invoice, some accounting providers won’t allow you to do this when the invoice has already been marked as ‘Paid’ by Marmalade when the invoice was cashed-in.
Check out the instructions in ‘How do I add a credit note in Marmalade?’
How do I add a credit note in Marmalade?
- Create the credit note in the accounting platform - don’t associate it with an invoice.
- Take note of the Credit Note number
- In Marmalade, go to the invoices page. Marmalade will have detected the credit note, and you should see information relating to the credit note on the Invoices page.
- In Marmalade, find the invoice you would like to apply the credit note to, and select ‘Action’ then ‘Allocate credit note’.
- A panel will appear where you can select which credit note to apply. Any credit notes recently created that are associated with this Customer will appear in the list. You can identify the credit note you wish to apply by the Credit Note number.
- Select the credit note and then click the ‘Allocate Credit Note’ button on the panel. Marmalade will take a few seconds to confirm that the credit note has been correctly allocated. The Credit Note panel will update with the status of the credit note allocation so you will know if it’s been successfully applied.
Note: Credit notes can only be applied if they are less than 30% of the invoice value, if you need to apply a credit note larger than this please send the following to support@withmarmalade.com:
- The credit note number
- The invoice the credit note is for
- The reason for the comparatively large credit amount
How can I see invoices I’ve already added a credit note to?
You can identify invoices that have credit notes by looking at the list of invoices in the Invoices Page. Invoices that have a credit note linked will show with a Paper Clip icon next to the Due amount.
I added a credit note to an invoice and now it says ‘Failed’?
Marmalade needs to make some changes to your invoices in order for a credit note to be applied to a cashed in invoice. Occasionally this may fail if there are unusual circumstances. It’s best to contact Marmalade if the credit note has failed to be applied, as it may be an usual case that you may need assistance resolving.
I forgot to associate a credit note with an invoice, and now the Payer has paid it?
You can associate credit notes with a customer so the customer can see them on their Payer statement, even if they are not allocated to an invoice. Next time you issue an invoice, you an associate the credit note with that invoice instead.
Where can my Payer see credit notes in Marmalade?
If you associate a credit note to an invoice in Marmalade, the due amount will be updated to reflect the credit, and the credit will be visible on the Payer statement. Credit notes that have not been associated with an invoice but have been raised for the Customer will be visible on the Customers Payer statements as well.
Can I apply a partial credit note in Marmalade?
Not at this stage - the value of the credit note must not exceed the value of the invoice you wish to apply it to. Alternatively you can apply the credit note to the Customers account, so that it is reflected on their Payer Statement in the meantime.
Can I apply a credit note to more than one invoice in Marmalade?
Not at this stage, however you can create multiple smaller credit notes and apply each to an invoice to achieve a similar effect.
Can I apply more than one credit note to an invoice in Marmalade?
No, you can only apply one credit note per invoice.
I can’t see the credit note I created when I go to add it to an invoice in Marmalade?
- Wait a few minutes in case it is taking time for Marmalade to pull the data through from the accounting platform (This typically should take less than five minutes)
- Check that the credit note wasn’t already associated with an invoice in the accounting platform
- Check that the credit note was associated with the correct Customer
- Check that the invoice you want to assign the credit note to also belongs to the correct Customer
Why can’t I add a credit note to an invoice in Marmalade?
- Credit notes may not be able to be added to an invoice if the invoice has already been paid by the customer, even partially. In these cases we recommend adding it to the customers account in your accounting platform and Marmalade will be able to reflect that to the Customer on the Payer Statement.
- You cannot add a credit note to an invoice where the value of the credit note exceeds the value of the original invoice. Try reducing the value of the credit note or applying it to an invoice of a higher value.
How do I add a credit note to an invoice in my accounting platform?
Generally accounting platforms will allow you to associate a credit note with an invoice that is unpaid. If you want to add a credit note to an invoice that has been cashed in, you will need to use Marmalade's process to achieve that.
Marmalade is saying it detected I made a credit note? Why does it do this?
Marmalade listens for when you create a credit note in your accounting platform so it can remind you to associate that credit note with an invoice in Marmalade. Associating invoices with credit notes is great for Customers, as they get full visibility of the credit note, and Marmalade is aware that the value of the invoice has changed.
I accidentally assigned the wrong credit note to an invoice, what do I do?
Contact Marmalade and we can help resolve this issue for you.
When I associate a credit note with an invoice, why does it go to Make Good Balance?
When you cash-in an invoice, Marmalade pays you the value of the invoice in advance. If you then go and discount the value of the invoice, that means your Customer will pay back Marmalade less than expected. In order to conveniently cover the difference, we add it to your Make Good Balance. This means next time a different invoice gets paid, we will recoup the difference of the credit note from that payment instead. This means you don’t need to make any special payments or contact with Marmalade, as Make Good Balance automatically takes care of everything!
How should I create a credit note in MYOB?
- In MYOB, create an invoice with a negative balance, reflecting the value of the credit note. Select the customer.
- Save the credit note.
- Go to Marmalade to allocate the credit note.
How should I create a credit note in Quickbooks?
- In your Quickbooks Settings, ensure the setting to auto apply credit notes is set to OFF, otherwise Quickbooks will allocate the credit note to another invoice than the one you intend.
- In Quickbooks, create an adjustment note and select the customer and enter the value of the credit note.
- Go to Marmalade to allocate the credit note.
How should I create a credit note in Xero?
- In Xero, create a ‘New Credit Note’
- Select the customer and enter the value of the credit note then Approve the Credit note.
- Xero will allocate it to your selected customer, but will ask you to select which invoice the credit note is for. The invoice you want to allocate it to will not be in the list, as it is cashed-in and has been marked as paid. Do not select an invoice in this list.
- Go to Marmalade to allocate the credit note.
What does Marmalade do in my accounting platform after I allocate a credit note to a cashed-in invoice?
Once you select a credit note to allocate to a cashed in invoice, Marmalade will undertake a series of steps to make it easier for you to balance the transaction once it has been moved to your Make Good Balance.
- Marmalade will create a bill for the value of the credit note, to transfer the amount to the Marmalade Clearing Account in your accounting platform.
- Marmalade will create a cash refund on the credit note, that is paid from the Marmalade clearing account. This shifts the outstanding value of the credit note from your Receivables to the Marmalade clearing account, allowing it to be balanced with a payment to the Make Good Balance.
- When you balance the outstanding credit note value on the Make Good Balance, either manually or using a different cash-in, Marmalade will balance the transactions in the Marmalade Clearing account in your accounting platform.