Opening Credit "Bank Account" not reducing after payments made

As part of Credit Note processing I created a Bank account called Credit Notes and added credit accumulated on the clients account through the Client main page ( “Add Credit”)

Using this credit I used Log Payment on the Invoice Page and auto applied credit to the invoice.

However the “Credit Note” Bank Account total did not reduce although a system added note was found attached to one of the credit entries to say it was used to pay the invoice

Shouldn’t the “Credit Note” account balance reduce ?

Hi Howard,

We have an automated process for raising ‘Credit Notes’, using the method you described above will mean that you need to journal the balance on the holding account created called ‘Credit Notes’ to sales, thereby reducing the total sales by this amount .

This method is also not the best method as you will need to issue your client with a ‘Credit Note’ in order to notify them that the input VAT should be adjusted (if any) and also the purchase amount reduced accordingly.