To do this:
- Within your contract, add an invoice as normal – Whether it’s a deposit, interim or final payment.
- Add a Credit as a normal invoice – Make sure there is a raised date against it, otherwise the system won’t register it.
- You can see that the Invoice Gross is now £1000 rather than £1500 because we have now raised a Credit of £500.
- If you head to your Reports in your Main Menu and down to the ‘Balance Outstanding Report’.
- If you select Deposit (which is the invoice that we’ve just raised) AND Credit, select Excel, this will show the correct Outstanding Balance.
- Mr J Wells – Contract No 231 is the contract we have just raised invoices against.
- You can see the TOTAL BALANCE is £1000- which is correct. If we scroll across to SELECTED INVOICES – BALANCE, this is also £1000. This is correct as we have selected Credit as an Invoice Type within the report.
- If we head back to the Balance Outstanding Report and unselect Credit, select Excel and look at Mr J Wells Contract (231).
- The TOTAL BALANCE remains at £1000 BUT the SELECTED INVOICES – BALANCE is now at £1500 as we have unselected Credit. We suggest always following the TOTAL BALANCE as this is always the accurate amount.
- The important thing to remember is – If you want to produce an accurate Balance Outstanding Report, you MUST select CREDIT to get an accurate balance.
Thank you for watching our how-to video on How To Understand Credits, for more information and access to our free trial please visit our website https://businesspilot.co.uk