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The way credits are allocated is such a waste of time and too time consuming. There a many better ways to do this. We have a huge number of credits and having to to go back through the process to allocate each one takes me too long. We should have to option to select multiple credits and apply them to multiple invoices.

Great additional input on this topic, Selorm! Couldn't agree more.

And, while we're talking currency conversions, why can't we choose the currency that we want to reimburse through Expenses? Why does every expense claim have to be converted into the base currency so that when we want to reimburse it in the currency that was used for the expense I have to manually add them all up? (Probably should find the correct "idea" to record that comment but it always takes so long to find the right one).

It is bad enough that I have to 'add a cash refund' for the credit note to appear in bank reconciliation, but I also have to manually calculate and enter an exchange rate for each of the dozens of credit notes I have to add a cash refund for. It would be much easier to enter the amount received (which I know) rather than the exchange rate (which I don't know). Hopefully what is developed allows credit notes to be matched to refunds automatically across different currencies, as is the case for bills, etc.

And generally, whenever a currency conversion is required, please ask for the amount and not the exchange rate (as Xero does when a there is a transfer between bank accounts with different currencies.

This is a major issue for us as well.

My understanding, after a good deal of research and circular conversations with the persistently over-confident GPT, is that when my supplier issues me a refund, paid to my bank account, I must first add a cash refund to the credit note - manually - including the date, value, reference and bank account, despite the transaction already existing right on my bank feed ready to go.

I can understand why it might make sense not to immediately generate reconcilable account transactions based on credit notes (if the supplier issues credit as opposed to a refund, for example), but surely it's simple enough to allow users to request a search for credit notes to reconcile, or even to add the option to select a bank feed transaction as the basis for a cash refund to apply to a credit note.

Neither of these options for basic bookkeeping functionality seem like hard computer science problems that take years to understand and solve.

Is there any update on this?? We issue credits that don't necessarily relate to any invoices so just have to post them against a random invoice which makes it very messy when looking back - it seems such a basic booking keeping requirement...

Hopefully this will also apply to being able to include credit notes in a batch of bill payments so that these credits also do not have to be individually applied to bills before being included in a batch payment.

So working on it for 9 months already ! Surely time for the delivery ward and some maternity leave ???

The ability to allocate supplier credits while matching bank payments.

Working in a large firm of accountants, transitioning clients to Xero and training them, this is by far my biggest issue with Xero. I have been requesting this for 8+ years now and I can see the request is the most voted for....please, please, please prioritise this!

Is there any further update on this. the last update provided was in March 2024.

I've spoken to the "team" in Reading via my "Partner Assist Specialist" and sent in documentation of several scenarios surrounding the functionality of credit notes and how it should work. They of course can do nothing, but have promised me a call from a "Senior". We'll wait and see.

Supplier Credit Notes should appear in the list of available Supplier Invoices for allocations when reconciling the bank. The current system of having to allocate a credit note to an invoice is nonsense because if the invoice to which the credit note refers has already been paid, you are allocating the credit note against the wrong thing. Please list credit notes with invoices as unpaid documents so you can simply tick them off until you reach the desired amount to balance the transaction. It would be so easy.

When reconciling the bank, to have the option to search and find any unpaid credit notes - without having marked them as 'paid' beforehand, or having allocated them to an outstanding bill or invoice.
At present, a credit note does not show unless it has been previously marked as 'paid' or already allocated against a bill or invoice; hence reducing the outstanding balance.
Credit notes should be treated in the same way as a bill or an invoice in this scenario. I spend a lot of time having to back to the 'awaiting payment' screen, searching a credit note, manually marking it as paid, before I can then go back into the bank reconciliation screen and match this against a payment - it feels like I am working backwards.

Oh, I see. We don't use any of them for anything more than bookkeeping, VAT and so on. Accounts/corp tax are done elsewhere. So how Freeagent handles corp tax is irrelevant to us. The rest is just debits/credits, not sure what the problem is?

We're going to have to disagree on everything else as well, but glad to hear Xero is working for you because it never has for us.

The elephant in the room is that Quickbooks, Sage, Freeagent all handle credit note matching better than Xero, pretty much every software does. Also many of these Xero feature requests just aren't a problem elsewhere...

@Chris Rogers
You're not serious?

FreeAgent has a terrible functionality problem with dealing with Directors Loan Accounts, fixed assets and depreciation and thinks it can calculate Corporation Tax itself, which it can't. It's just not user friendly. It's not simple, it's clunky.

Crapbooks is unusable rubbish that's not fit for purpose.
We have over 75 clients on Xero, 3 remaining on Crapbooks - with many of our clients making the move to Xero in recent years. People are leaving Crapbooks in droves, because it's rubbish. There's no point discussing it further.

Sage Line50 was always the market leader, but when the world moved online, they got left behind and priced themselves out of the market. They have been trying to catch up ever since and Sage Online is not the same product as Sage Line50. They have made improvements in recent years, granted.

Until anything better comes along, Xero is the best value for money - presently - out there.

@Patrick James and Co: That's not true for everyone, I stopped recommending Xero in 2018. What does Xero have over Sage, Quickbooks, Freeagent? Nothing.

Sage and Quickbooks are perfectly functional for our larger clients, Freeagent's simplicity is perfect for our micro clients. Xero is a complete non-starter, it's not just these unfulfilled feature requests that are the problem, the UI is horrendous and I hate using it everyday.

The only reason we use Xero at all is for clients who transfer in who have been using it for years.

We all need to get onto our Xero account managers (if you can find out who yours is) and lobby them. I once had a call from a developer in the USA asking about what we wanted. I replied at length, sent scenarios etc. still nothing. Maybe I'll lobby the CEO next....

Claire, Lisa, Nigel, et al:
Sadly Xero have gone the way of other software companies and put money first.
They must have millions of subscribers by now, because all things considered, it's a far better piece of software than Sage online, the abominable Crapbooks and the laughable FreeAgent.
So, in their confidence that we won't leave them in our droves, they keep putting the price up whilst ignoring our please for basic, fundamental accounting functionality.
In a nutshell, it doesn't matter how many people post on all of the credit note threads (there were a few, because there is an outcry for the software's inability to deal with credit notes correctly), as long as they are still taking our money, they just don't care.
Keep voting, though!

@Lisa Winchester. A workaround we've used is to mark the credit as paid or received, and then in the bank rec, under Find & Match, select "Show Received Items," and the credits marked as paid or received will appear. Refer to screenshots. It's not ideal, but you don't have to match credits to bills or invoices and guess what the customer or vendor does.