Credit note query

I overcharged a client in a quarterly invoice in December so I issued a credit note for the amount overcharged.

I have since issued a new invoice which is not yet paid because the client queried it.

I am confused because the statement doesn’t seem to take account of the credit note in the amount outstanding and shows the outstanding balance without the credit. I attach a screenshot.

I may be being stupid here. I am not an accountant and may misunderstand something.

Can you advise please

Peter Harris

That looks like you actually refunded the client when you did the credit note, rather than holding the funds on account for use against future invoices. If so then it’s correct that it doesn’t affect the outstanding balance.

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