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Adjusting the price on an invoice or over due invoice

im new to quickfile…

if i do an estimate, and then turn it into a quote.
if i then accept multiple payment for this which are paid via the bank.
if i then agree a final discount or adjusted price on the final amount, how would i do this and keep everything matching up?


i invoice a customer for £1000
I receive £100 bank deposit.
I receive £500 bank mid payment.
I receive £350 bank payment and agree that i have discounted the final amount by £50.

how would i actually do this?
if i just kept the invoice at £1000, it would show £50 outstanding.


Hi @adnw,

The £50 discount at the end could be done by a credit note against the invoice? that would then clear the remaining balance on the invoice :slight_smile:

would a credit note not show as something like a traditional credit not from a store?
wouldnt it show that the customer has £50 worth of ‘credit’

Hi @adnw

Credit note in the sense of accounting is more of an adjustment or refund - it doesn’t give them credit as such (although this is one use of it).

For example, if they’ve paid the invoice in full then you will have the option to either refund the balance to the client (as if you’ve physically paid them back), or hold the funds on account (which gives them credit).

If there’s an outstanding balance on the invoice, the credit note can be used to reduce the amount owed - no money would change hands.

does that mean ill end up with a ‘credit note’ bank account shows in the banking sections which would show all these ‘discounts’?

would that then assume i have actually received £1000 into the company still having the invoice showing as £1000 and the customer as having paid?

or would it show as ive received £950?

i thought i would just adjust the total to reflect the new £950 total?

Hi @adnw,

You could alter the invoice, but I would double check with an accountant to make sure that you are covering what you need to with respect to VAT.

There is no ‘credit note’ bank account, the credit note would just show on that particular clients account.

It will show that you have received the £950 in total, and your sales section will show an invoice for £1000 and a credit note for -£50.

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thanks for the info

it will look similar if i either apply a credit note for £50, or apply a £50 discount.

in what situation, or when would it be best to apply a credit not and when to apply a discount?

both will sort of achieve the same things but will look different in account


It can be a difficult choice at times. Typically I would apply a discount where it had been explicitly agreed up front and matched the terms of the invoice.

So if, as a magazine editor, I agreed an advertising slot for a year, prepaid then I would include the discount in the invoice.
If I invoiced at 30 days but said that they could have a discount if, and only if, the money was paid in 7 days then I would use a credit note.

Remember that the credit note can be used purely for internal accounting, you don’t have to send it to the customer.

I see, thanks

How do credit notes and invoiced amounts show up in sales etc then?
Do you sort of hold a separate ‘bank account’ for credit notes?

what i mean is,

if i invoiced £1000 then applied a £50 credit note,
i think my sales would show as £1000 even though it was £950 i got.

what happens to these credit notes and how are they actually accounted for?
are they effectively money owed to you that you have written off or authorised that you are not collecting?

The credit is simply a deduction from the nominal account that you specify when creating it. IIRC It will default to the nominal in the first line of the invoice. The sales figure and the amount owned by your customer are both reduced.

They are not money “written off” in the technical sense, as far as HMRC are concerned this term explicitly covers bad debts and is handled differently in Quickfile.

A credit note is essentially an invoice with a negative value - if you issue an invoice for £1000 and a credit for £50, then your total sales add up to £950.

You can create credit notes to represent cases where you’ve actually sent a refund, or cases where you’re simply reducing the amount the customer needs to pay you. For example, I run a shop, I order £500 worth of goods from a wholesaler and they send me an invoice. Then when the goods arrive it turns out that £50 worth of the items are damaged or missing, I contact the supplier and they send me a credit note for £50, then I pay them the £450 balance.

Or if I’d already paid them the full £500 before the delivery arrived then I might use that £50 credit note to reduce the amount I pay them next time I order from them.

A good rule to stick by is not to modify an invoice that you have already sent to a customer - if you need to reduce what they owe then issue a credit note rather than modifying the original invoice. This is particularly important if you’re VAT registered as it removes any ambiguity between you and the customer as to exactly how much VAT they’re entitled to reclaim.

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