Managing Credit Notes & Refunds in PRO Software

Handling refunds and credit notes efficiently is essential for maintaining accurate financial records and ensuring customer satisfaction. PRO Software Solutions provides multiple options for issuing refunds and credit notes, allowing businesses to correct invoices, manage overpayments, and process customer refunds seamlessly.

Understanding Credit Notes & Refunds

What is a Credit Note?

A credit note (credit memo) is issued when a customer has been overcharged, an invoice was created by mistake, or a refund is due. This creates a credit balance that can be applied to future invoices.

What is a Refund?

A refund is the return of funds to a customer after they have made a payment. Refunds are only applicable if the customer has already paid the invoice.

💡 Business Tip: Whether to issue a full refund or leave a credit on the customer's account depends on your company policy.

How to Issue a Credit Note or Refund in PRO Software

Step 1: Select the Customer Invoice

1. Click the Accounting icon from the main dashboard.
2. Select the customer for whom you need to issue a credit note or refund.
3. Click Invoices to locate the invoice that needs correction.

💡 Note: If you don’t see all invoices, toggle off any pre-set search filters (e.g., "Open Invoices").

Step 2: Choose a Refund Option

When issuing a credit note or refund, PRO Software provides three options:

Option 1: Cancel an Invoice

• Use this option if the invoice should not have been issued.
• A credit note will be created, validated, and reconciled with the invoice.
• The invoice amount will be removed from outstanding balances.

Option 2: Modify an Invoice & Issue a New One

• Use this if you need to cancel an invoice and create a new draft invoice.
• A credit note will be generated and linked to the original invoice.
• You can edit and validate the new invoice before finalizing it.

Option 3: Apply a Refund to a Paid Invoice

• This option is used when a customer has already paid the invoice and is owed a refund.
• PRO Software will process the refund according to the original payment method:
  • Credit Card Refund: Initiates a refund back to the original card (processing time depends on the bank).
  • Check or ACH Refund: Requires a manual payment registration in the customer’s account.

Finalizing the Refund Process

Step 3: Validate the Credit Note

Once a credit note is created:

1. Click Validate to apply it to the customer’s account.
2. The original invoice number will be referenced for tracking.

Step 4: Process the Refund (if applicable)

For credit card refunds:

• Click Refund and confirm the transaction.
• The refund will be processed automatically, though the bank may take a few days to release funds.

For check, cash, or ACH refunds:

• Click Register Payment and enter the refund details.
• Validate the payment to finalize the refund.

Tracking Refunds & Credit Notes

After issuing a credit note or refund, you can track the transaction:

• In the customer’s account: Credit notes will appear as a negative balance.
• In reports: Run a Refund Report to view processed refunds over a specific period.

💡 Pro Tip: If you're not issuing a direct refund, leaving the credit on the customer’s account ensures they can apply it to future purchases.

Conclusion

PRO Software Solutions makes managing credit notes and refunds simple, efficient, and accurate. Whether you’re canceling an invoice, modifying an order, or refunding a customer, the system provides the flexibility to handle transactions with ease.