Credit notes and debit notes

A tax credit note reduces or cancels an issued invoice; a debit note adds to it. Both reference the original invoice (BT-25) and go through the same validation and Taxilla submission as an invoice.

1. Go to Invoices, open the row menu (⋯) on an issued invoice and choose Create credit note or Create debit note. The same actions are available on the invoice page.
2. The editor opens with the kind set, the number taken from the credit note or debit note series (for example CN-0001, DN-0001), and the preceding invoice reference and date filled in and read-only. A credit note also copies the original lines.
3. Adjust the lines so the note covers only the amount to credit or debit. The correction panel shows the original total, notes already issued, the remaining balance and the balance after this note.
4. On a credit note, choose the Credit note reason (BTAE-03) from the FTA list; it is required. Add Details in your own words if helpful. On a debit note, enter the Reason for debit.
5. Click Validate & save, then Submit to Taxilla.

Alya Books checks these rules on validation and again on submission:

Good to know:

• One credit note can correct several invoices. Below Preceding invoice, open This credit note corrects another invoice as well and pick an invoice: the list offers the customer's issued invoices in the note's currency that are not yet named (matched by contact, else by TRN, else by name), and the number and date are filled in. When the customer has no other issued invoice in that currency, a note under the control says so and only an outside invoice can be added. For an invoice that is not in Alya Books choose An invoice not in Alya Books and type its number and date; a missing date gives a warning, because Taxilla requires it. Each invoice is sent as its own reference.

• With several invoices, the correction panel shows what is left to credit on each one and Remaining creditable together; the credit may not exceed that combined amount. For the balances of the invoices themselves, the whole credit counts against the first invoice (the one you started the note from).

• Once you have picked the original invoice, the reference fields cannot be changed. Choose Create credit note from the right invoice.

• The original invoice shows a Linked documents card listing its notes and the net amount. A credit note that names the invoice as a further corrected invoice is listed there too, under its own heading, with the invoice its amount is counted against; a note's own card links every invoice it corrects.

• In the invoice list, credit notes appear with a minus sign and the type filter separates invoices, credit notes and debit notes. Analytics revenue is net of credit notes.

• Credit notes have no payment status and no reminders.

• With the reason VD (volume discount) the credit note needs no preceding invoice: the original invoice in the correction panel becomes optional and the credit is not checked against any invoice's balance, because a volume discount relates to a run of past invoices. The e-invoice of a VD credit note never carries an invoice reference, also when you started it from an invoice: the validation report says so, and the link to the original stays in Alya Books.

• A reported debit note increases the creditable balance of the original, so a later credit note can cover it.

• The credit note PDF is headed "TAX CREDIT NOTE" with the original number and date.

Related:

• Correct or cancel an issued invoice
• Document kinds
• Understand validation errors