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

Follow these steps:

  1. Click accounts.
  2. Click on Tax Invoices
  3. Find the TI you want to use to create a CN from. (You may want to use the search filters).
  4. Hover over the icons on the right-hand side of the TI. 
  5. Click on the icon that is called "Add Credit Note".
  6. A new Credit Note screen will open where you can fill in all the details for the CN.
  7. 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.
    • Only display section headings and sub-totals on PDF's: Tick this box if you want this information to be hidden from the client when viewing the PDF.
    • Hide line totals on PDFs: 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. 
  8. Save the details
  9. Your tax invoice status will update the credited/part credited depending on the credited amount.
  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 screenshots below:

Credit note creation view:

Credit Note action icons:

Also see: 

Creating item types and billing rates

Learn how to save your popular searches

See how to use data tables