Credit Notes
Correct invoicing mistakes cleanly — partial credits, full reversals, and automatic accounting sync
Issuing an invoice isn’t always the final step. Whether a client disputes a line item or you need to wipe a Mistaken charge, Credit Notes allow you to adjust live financials without deleting history.
In AtomicSam, Credit Notes protect your audit trail while ensuring your job profitability and accounting software (Xero/QuickBooks) remain perfectly in sync.
Common Scenarios: When to Issue a Credit
Instead of deleting an invoice, use a Credit Note in these situations:
- The Scope Changed: You quoted for 10 hours of consulting, but only delivered 8. Use a Partial Credit to refund the difference.
- A Billable Error: You invoiced the wrong client or applied the wrong rate. Use a Full Reversal to zero out the balance and start over.
- The "Goodwill" Discount: A project ran late, and you’ve agreed to a 10% discount after the invoice was already sent.
- Disputed Items: A client questions a specific expense or line item. Credit just that specific line to keep the rest of the invoice valid.
How to Create a Credit Note
AtomicSam does the heavy lifting by pre-filling the data from your original invoice.
- Locate the Invoice: Open the specific invoice you want to adjust.
- Initiate Credit: Select Create Credit Note from the actions menu.
- Adjust the Scope:
- For a Full Credit: Leave all line items exactly as they appear.
- For a Partial Credit: Edit the quantities or amounts. Example: If you are crediting 1 hour of a 5-hour task, change the quantity to 1. Delete any lines that do not require a credit.
- Add a Reason: Document why the credit is happening (e.g., "Overcharge correction" or "Scope reduction").
- Finalise: Click Create Credit Note.
The Benefit: Automatic Financial Accuracy
When you issue a Credit Note, AtomicSam automatically handles the "ripple effect" across your business:
#### 1. Real-time Job Financials
The Invoiced Total for your project drops immediately, and the Outstanding Balance is reduced. This ensures your project dashboards always show "Real" revenue, not "Invoiced" revenue that you aren't actually collecting.
#### 2. Re-releasing Time & Costs
One of AtomicSam’s most powerful features: when you credit a line item, the associated Time Entries and Expenses are "released" and become unbilled again. This allows you to fix the error and pull them onto a new invoice correctly.
#### 3. Seamless Accounting Sync
No manual data entry required in your accounting app.
- Xero: Syncs as a Credit Note linked to the contact.
- QuickBooks: Syncs as a Credit Memo linked to the customer.
- Tax Integrity: AtomicSam matches the tax rates and income accounts from the original invoice perfectly.
Understanding Statuses
| Status | What it means |
|---|---|
| Draft | Safe to edit or delete. It has not affected your financials yet. |
| Issued | The credit is "Live" in AtomicSam and ready to be sent to your accountant. |
| Exported | Successfully pushed to Xero or QuickBooks. |
| Voided | The credit note has been cancelled and has no financial impact. |
> Pro Tip: Never delete a sent invoice. If a client asks for a change, issue a Credit Note for the original and create a new invoice. This keeps your "Invoiced Number" sequence clean and makes your accountant much happier during tax season.