Invoices, Receipts, Adjustments, Credit Notes & Refunds

In this article, we'll explain the four key types of sales records in Oncord: Invoices, Receipts, Adjustments, and Refunds, and how they work together to keep your accounts clear and accurate.

Concepts Explanation:

Sales Invoices

A Sales Invoice is a formal document representing an order placed. It details the items or services purchased, quantities, pricing, and any applicable taxes. This document creates the expectation of payment from the customer.

Receipts

A Receipt is issued once payment has been received. It confirms that funds have been successfully transferred and is often used for record-keeping and compliance purposes.

Adjustments

When you need to modify a sales invoice or refund a customer, this is done via Adjustments. Adjustments act as a counterpart to the original invoice, allowing you to revise previous transactions while maintaining a clean audit trail.

For example, if a customer changes their order, an adjustment invoice is created to reflect the new arrangement. You can remove or add items as needed.

If the value of removed items exceeds that of items added, credit is generated. This credit can be:

• Used by the customer for future purchases.
  
• Refunded directly to the customer.
  

Adjustments can also be used to:

• Apply a discount after a sale has been finalized.
  
• Correct mistakes in the original invoice.
  
• Provide a credit note for future use.
  
• Mark an invoice as bad debt.
  

Refunds

A Refund is represented as a receipt with a negative payment amount. This typically occurs when a customer returns items or when an overpayment needs to be returned.

To further explore Adjustments, select from the following:

I want to:

View all adjustments in my account.
Create an adjustment for a sales invoice.
Understand the types of Adjustments and when to use them.
Understand using adjustments on Paid vs Unpaid invoices.
Refund a customer.
Allocate a credit to a customers unpaid sales invoice.
Void a customer credit.