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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!

Lisa Winchester - I have posted to facebook page many times, mention it whenever I get the opportunity - so darned annoying, been mentioning it for easy 12 years

This is one function I miss MYOB for and their payroll hahah.

It would be fantastic to incorporate this function and a big time saver 🙌. So annoying to have to always apply the credit before we can reconcile the transaction.

Perhaps we all need to post on social media since we're being ignored in here?!

Still no updates from XERO on the programmes poor handling of credit notes and what they intend to do about it! I don't want pretty looking reports I want an accounts package that works as an accounts package should with the basics!
No update on this thread since 2022 and no response at all on the following thread https://productideas.xero.com/forums/939198-for-small-businesses/suggestions/46674505-batch-payments-ability-to-include-credit-notes
There has to be a simple solution to this surely! So much time wasted and remittances sent to supplies are nonsensical!

I would like to be able to add customer refund within bank reconciliation feed, including as a payment on account and not necessarily against a particular item (useful for returned cheques too).

Hi there, it would be really great if we could see credit notes in the bank reconciliation screen rather than having to allocate them separately to invoices. It would make things easier if we could allocate them to payments.

Add ability to reconcile payments to credit notes within the bank reconciliation screen

allocate credit notes within the bank reconciliation screen?

For everyone that struggles with this, there is a **** work round but may work for you.

Refund the credit notes as cash to the correct bank account and then tick include receivables on the reconciliation screen. It is still a **** and manual process but for ones like Alice B that have lock dates the credit note is included in the batch at the date of payment. Hope it is at least of some help!

In our business we set a lock date each month to close off for reporting - however after this point only an adviser role can go in and allocate credit notes on account from previous months to current supplier bills, even though they're already approved. Very frustrating and a waste of time!

This is one issue I struggle with using Xero. The process of supplier credits is very difficult in the Xero software. I have suppliers who refund multiple credits with one payment and to try and deal with this through Xero is very painful, not to mention suppliers who we have accounts with, whose credits usually fall in the following month after the invoice and having to allocate credits to unrelated supplier invoices is just as confusing. Xero could make this a lot easier by fixing the issue in the software for their customers.

Hello Kelly

I have been following this idea from the start. It is very frustrating that this isn't standard. It makes no sense to link a credit to an invoice that has nothing to do with the original transaction even if we ignore the extra time taken to allocate a credit before the bank reconciliation. It also makes little sense when explaining this to clients especially when they were used to this as standard after changing from Sage for example.