How can I issue a credit or add a negative charge to an invoice?
Question
How can I issue a credit or add a negative charge to an invoice?
Answer
If you would like to address this issue with the recommended approach, please refer to Fixing billing mistakes. While the recommendation is to void and un-post, back the items out, and correct them at the source, you can also add a credit charge on a future invoice for the customer.
To add credit on an invoice, you can create a negative charge on a ticket, project, or contract that will appear as a "credit" on your customer invoice. The Quantity of the charge cannot be a negative value, but the Unit Price can be a negative amount.
We recommend adding a custom charge name and selecting the corresponding material code to associate your charge with the correct tax category as well.
- You can view the association between the Material Codes and Tax Categories by navigating to Autotask menu > Admin > Features & Settings > Finance, Accounting & Invoicing > Billing Codes > Materials.
- Ensure that the taxes that were applied on the original Billing Item (Worked hours, Charge, Recurring Service, Subscription, etc.) will be used on the Credit Note as well.
When the ticket charge is approved and posted along with other billable items, the credit will be listed on the invoice and deducted from the total.
QuickBooks notes:
- QuickBooks Invoice Transfer: While you can transfer a negative price on an invoice item, the total cost on the invoice must be greater than or equal to $0.00. Invoices with a negative total will not be transferred to QuickBooks.
- QuickBooks Quantity on Discount Items: QuickBooks does not accept a Quantity on Discount Items, which means if the charge is linked to a discount in QuickBooks, you will have to create the charge with a quantity of zero. Once you apply a quantity of zero, it will clear the billable amount. You will then have to enter the negative amount in the Billable Amount field.
