Add and Manage Credit Notes in Billabex

Credit Note Management

Credit notes represent amounts credited to your customers, reducing the total balance due. They are essential for reflecting a customer’s actual outstanding balance and for allowing the AI agent to adapt its follow-ups accordingly.

Billabex allows you to add credit notes manually or sync them automatically through a connected invoicing system.

Add a Credit Note Manually

1. Go to the Credit Notes module from the navigation bar
2. Click the Add button
3. Upload the document or complete the required fields
4. The platform automatically detects:
  1. The associated customer account
  2. The credited amount
  3. The credit note status
Once the credit note is validated:
  1. It appears in the global list or under the customer account
  2. The account’s outstanding balance is updated
  3. The credit note is linked to the relevant invoices and shown in their detail view
Info
You can also access credit notes from a Account > Credit Notes tab

Automatic Credit Note Sync

If your invoicing system is connected to Billabex (e.g., Pennylane, Zoho Books), credit notes are:
  1. Automatically synced
  2. Linked to the correct accounts and invoices
  3. Immediately included in the outstanding balance calculation
No manual action is needed.

Automatic Allocation of Credited Amounts

As soon as a credit note is recognized by the platform:
  1. The credited amount is automatically applied to the customer’s unpaid invoices
  2. If the credit covers all invoices, the note is marked as fully applied
  3. If only partially applied, it is allocated to one or more invoices and updated accordingly
Credit = Total Due
Credit < Total Due
Credit > Total Due
Credit = Total Due
All invoices are paid in full or in part. The credit note is marked as settled.
Credit < Total Due
The credit is partially applied. The oldest invoice is updated first.
Credit > Total Due
Excess credit is retained and applied to the next upcoming invoice.
 

Impact on Recovery

The AI agent fully considers credit notes when analyzing account balances and generating follow-up plans:
• It does not follow up on invoices covered by a credit note
• It adjusts reminders based on the actual remaining balance, after applying all applicable credits

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