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Allocate bank transactions directly to credit notes

I find it annoying that you have to always allocate a credit note to an invoice. Why can't you "pick up" a credit note when allocating a payment from a customer, the same way as you can "pay" an invoice. Why do you have to allocate it to an invoice first?

Good to hear that this is finally in development. Will we be able to allocate credit notes to future repeating invoices? It feels like repeating invoices are always forgotten about when it comes to development.

Well its took over a decade to get from an idea to working on it so by the time its in operation i will of retired!

Thank you. We really need this. We issue credit notes that don't relate to specific invoices - but have to allocate them to a random invoice which makes everything so messy when looking back at records. Can't wait!

AMAZING! Thank you!

This will help so much.

Also, AP credits to be available as 'refunds' on the bank reconciliation would also be a life saver!

Glad to hear, finally.

It also needs to apply to the 'make payment' option in awaiting payments.

Thank you!!

yeah, it was about time... we can't wait ;) please please, i know we can mark them as refunded and they'll show on bank recon, but that's a proper nigthmare... it should be automatic... prepayments, overpayments, credit notes... thank you

Will this development include allowing us to allocate credit notes to repeating invoices as well?

After over 12 Years since I created the original thread on this, I'm glad to see it is finally getting looked at!

I am so pleased this is now being followed up

I'm stoked the devs have decided to work on this!

I also agree with the others. Having to manually allocate credit notes before preparing a batch payment to a bunch of suppliers or reconciling a bulk payment from a customer is time-consuming and slows down what is otherwise a relatively quick and streamlined workflow.

The manual step can also be prone to human error, especially when a customer or supplier has lots of credit notes to be allocated.

For this reason, we dread working with clients whose business model means they have lots of credit notes to deal with.

I agree with Claire and Luke. It's important that, when setting up suppliers' payments, it's possible to select both the outstanding invoices and credit notes. Currently, credit notes have to be allocated against random invoices first, which means that it's not possible to produce a remittance advice showing which credit notes have been used or why there's an underpayment on some invoices. This is basic functionality.

Agree with Claire.

Suppliers often ask us why we have randomly allocated a CN against an unrelated invoice on the remittance rather than just taking it as a credit against the whole payment. Only Xero users appear to have encountered the forced invoice allocation of credits.

Hi Kelly, can you please also add to the scope of this - the ability to select credit notes when setting up a creditors payment. So that way the remittance actually matches the payment, instead of having to allocate all credit notes against invoices (whether they are relevant or not).

Why would this NOT be the default in Xero? It is SO infuriating to have to figure out a workaround for this...

I always dread trying to reconcile credit notes as I never seem to be able to do it the right way.

Why should these be different to any other type of reconciliation?

Boggles the mind...

On the bank reconciliation screen you cannot allocate a bank payment (or receipt) to a credit note when there are also several invoices to pay. I believe you have to allocate the credit note to an invoice before going back into the bank rec screen and allocating the payment. This is quite long winded.

Petition for Xero Executives Regarding Alleged "Improvements"
https://central.xero.com/s/question/0D53m00009n36b9CAA/petition-for-xero-executives-regarding-alleged-improvements

Should start the same for the whole suppliers process!

PLEASE Xero, show that you actually care about your customers' needs and care about having a functional product and implement this extremely basic functionality!