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Credit Notes and Discounts

When paying an invoice, sometimes your client may accidentally overpay or record the payment twice. In such a scenario, a Credit Note can issued to the client to reduce the overpaid amount on their bill (invoice) or alternatively you may apply a discount to the invoice after you have raised it. 

In LawMaster, you can issue a Credit Note to a client via Debtor Journal Entry module or raise a Debtor Journal via Unpaid Items. When inputting a Debtor Journal, LawMaster allows you to select the invoice to apply the write-off to and select the billing entity you want to process the write-off against.

 

Issuing a Credit Note by Debtor Journal Entry

Entering a Credit Note: 

  1. To create a Debtor Journal, go to Transactions > Debtor Journal Input or Main Menu > Accounting > Debtors > Debtor Journal Input. 
  2. Enter the transaction Date. 
  3. Enter/select the Matter Number. 
  4. In the Transaction Type field, select Write-on Fees or Write-on Disbursements depending on what you are crediting. 
  5. In the Reference No. field, type in the bill number eg “BI0000499”. This field is important when you have selected Write-on Fees, Write-on Disbursement, Write-on Interest or Write-on GST in the Transaction Type field above, as with these selection you do not have the option to select Invoice No.
  6. Enter a relevant transaction description in the Narrative field. 
  7. Enter the adjustment (negative) Amount. Make sure that the adjustment to the GST is also correct. 
  8. Click Add Transaction.


     
  9. This will then add the write-on fees transaction to the grid at the bottom on the screen. You can then proceed, to Write-on/off disbursements if necessary and then select Add Transaction. 
  10. Note: With the GST, you will also need to enter another transaction line for the Write-on GST component to reduce this down.


     
  11. Once you have added all of the write-off/on transactions, select OK on the Debtor Journal Input screen to apply the journal to the invoice number entered/ apply the transactions to the database.


     
  12. You will be prompted if you wish to print the adjustment notice.


     
  13. If you select ‘Yes’ on the message prompt, a form will merged and generated that can be sent to the client advising of the adjustment. The Adjustment form (GB) generated can be amended to be called a “Credit Note”. If you do not have someone in-house with the skills to amend the form, please advise the Support Team and they will be able to action this under a support request. 

 

Issuing a Credit Note by Unpaid Items 

Another method to raise a Debtor Journal when invoice is outstanding is via Unpaid Items on Matter Menu > Debtors > Unpaid Items. 

Entering a Credit Note: 

  1. Go to the Matter. 
  2. Open Matter Menu > Debtors > Unpaid Items. 
  3. The grid displays the list of outstanding invoices. Right-click on the required invoice and select the Raise Debtor Journal option. 4.

  4. This will direct you to the Debtor Journal Input screen with the Matter no. and the Invoice no. prepopulated. You can then issue the credit note as described in steps 4-13 in the previous section. 

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