What is Credit Note and how it works?
A credit note or credit memo is a commercial document issued by a seller to a buyer. Credit notes act as a source document for the sales return journal. In other words, the credit note is effectively a negative invoice, which can either cancel an invoice out completely or maybe less than the original invoice. Credit notes are usually issued if the customer requests a full or partial refund, or if you overcharged your customer by mistake.
In Marketcube, credit notes are issued by the Operator to the Vendor rather than the customer themselves. Credit notes on Marketcube are used in cases where returns have been issued to the customer by the operator but payment for the order has already been made to the vendor from the operator.
In layman's terms, the credit note functionality was developed for the operators to overcome the payment adjustment issue in case any order was returned by the customer. Previously, Operators faced an issue managing returns as they had already paid the vendors for that order and now operators had to return the money to the customers as well. Marketcube came up with a feature where operators can issue a credit note to the vendor to adjust the payment of the next order with the returned order payment in case the payment was made to the vendor.
Let's understand this with an example;
Vendor - Rola
Alaric bought a T-shirt worth $10. Rola was the vendor of that T-shirt so he shipped the order to Alaric's address. Alaric received the product and Mark paid Rola for that order. Alaric was not happy with the product quality so he returned the product. Mark also returned the money to Alaric.
Now how does Mark (the operator) get back the money from Rola (the vendor) in Marketcube?? For this, we have introduced the Credit Note feature. Using this feature an operator can adjust the already paid order with an upcoming order. In this case, the operator will not ask the vendor to return the money for Alaric's order but he will adjust the amount using a new order for the same vendor. So, if the next order is $50 and the operator has issued a credit note for $20, then the vendor will only get $30 as his share.
How to set up a credit note:
1. Click on the Settings icon on the Operator's dashboard.
2. Navigate to Returns and Refunds >> Click Show >> Click Credit Note.
3 . From here you can enable the credit note feature for all vendors or for any specific vendor.
Select either "Allow for all your associated vendors." or "Allow for your selected vendors only."
If you have selected "Allow for selected vendors only". Click the drop-down box that appears and select the vendors you wish to enable credit notes for. To add more vendors to this list Click +Add Vendor.
Once you have completed this section. Click the green Update button.
4. Once enabled, if an order has been returned and the vendor has already been paid, the operator can manage the vendor payouts for upcoming orders using credit notes.
Got more questions? Use the chat on your right or email firstname.lastname@example.org to get in touch.