On Magnetic, you can create a Credit Note(CN) directly from a Tax Invoice(TI)

Follow these steps:

  1. Hover your mouse cursor over accounts.
  2. Click on Tax Invoices.
  3. It is best at this point to change the status of the tax invoices to canceled on the status dropdown menu.
  4. Find the TI you want to use to create a CN from. (You may want to use the search filters).
  5. Hover over the icons on the right-hand side of the TI. 
  6. Click on the icon that is called "Add Credit Note".
  7. A new Credit Note screen will open where you can fill in all the details for the CN.
  8. Add the relevant information. (All information marked with *must be filled in).
    • Contact: Contact at the company the CN is addressed to.
    • Company: Company the CN is for.
    • Job: The job the CN is associated with. Link this CN to a particular job by adding the relevant job name in here.
    • Owner: Person in charge of the CN.
    • Title: Credit Note title.
    • Tag: A comma-seperated list of tags used to segment your database.
    • Issue dates: Date the CN is issued.
    • Delivery date: Date goods will be shipped / service provided.
    • PO Number: Tax Invoice number supplied by company.
    • Status: Select the workflow stage the CN is in from the dropdown menu. E.g.  Issued, Draft.
    • Terms of payment: Select the payment term from the dropdown menu. (You can create your own payment term in your company settings under the accounts section).
    • Description: Add any extra information you think is important in this text box.
    • Hide quantity and costs on PDF: Tick this box if you want this information to be hidden from the client when viewing the PDF.
    • Item types
      • Select the relevant item type from the dropdown menu. You can create your own list of item types. Alternatively, select the "New item" option from the dropdown menu and create a new item type.
      • Section Headings: If you would like to split your CN into sections, choose Section Heading and name it. When printing your CN you will see the line items split and a total per section is automatically added.
      • Mouse over a line item to display icons to change order, add new or delete line items.
    • Quantity: A number of hours for that particular item type to be charged for.
    • Cost: Basic cost per line item without markup added.
    • Mark-up: Percentage added onto Cost. (Note: For externally sourced products / services, set the markup you are adding in before selling).
    • Ext. Cost: The product of quantity x cost that the client will be charged. This amount does not include the margin.
    • Margin: Profit value that is added onto the external cost amount. 
    • Line Total: The total of the external cost plus the profit margin.
    • Tax type: Select one of the following options on the dropdown menu: 
      • No Tax: Items which are not taxed.
      • Taxable: Items which follow standard taxable rules.
      • Zero Rated: Items that are zero-rated for tax purposes.
      • Exempt: Item types which can not be charged VAT.
    • Details: This text box is useful if you want to add additional information about the item type being added.
    • Add a discount percentage or change the tax percentage if you wish.
    •  Ensure all the info is correct. 
  9. Save the details.
  10. Download or email the CN to the Client clicking on the icon that looks like a cloud to download, and a envelope to email.

See the video below:

Also see: 

Creating item types and billing rates

Learn how to save your popular searches

See how to use data tables