Partial Credits

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Issuing partial credits is an option to handle invoice corrections or customer complaints.

You can issue a partial credit if you want to withdraw one or more individual invoice line items from an invoice. This way, you reduce the original invoice amount, cutting your customer's debt.

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Withdrawing an invoice line item, issuing a partial credit

In Germany, this is referred to as a credit under commercial law ("handelsrechtliche Gutschrift").

Implementation Details

Users create partial credits from issued invoices that are to be corrected.

Technically, a partial credit is a credit (an invoice of the class Credit with a negative amount) that is built from an existing invoice. Using a lookup relation (set in Related With), it is directly linked to the original invoice.

Bookkeeping Data

Since a partial credit corrects an issued invoice, it corrects your revenue and the receivables from a customer – your debtor. This is why the produced booking data relates to the same booking accounts:

revenue and tax accounts
debtor account

Remember that for invoices, the amount is booked from the debtor account to the revenue/tax account. Consequently, the partial credit amount is booked "back" from the revenue/tax account to the debtor account.

Assume the following example:

(1) Invoice

Title	Net Total
Product 1	100,00
Product 2	100,00

		Total (net)	200,00
		VAT 19%	28,00
		Grand Total	228,00

(2) Expected invoice postings ( SKR 04)

Posting	Debit	Credit	Posting Record	Amount
1	10000	4400	Debtor → Revenue 19% VAT	200,00
2	10000	3806	Debtor → VAT 19%	28,00

(3) Produced booking details

#	Amount	Debit/Credit Flag	Booking Account	Contra Booking Account	Type
1	200,00	`H`	4400	10000	Revenue
2	28,00	`H`	3806	10000	Tax

(4) Partial credit

Title	Net Total
Product 2	-100,00

		Total (net)	-100,00
		VAT 19%	-19,00
		Grand Total	-119,00

(5) Partial credit postings ( SKR 04)

Posting	Debit	Credit	Posting Record	Amount
3	4400	10000	Revenue 19% VAT → Debtor	100,00
4	3806	10000	VAT 19% → Debtor	19,00

(6) Produced booking details

#	Amount	Debit/Credit Flag	Booking Account	Contra Booking Account	Type
3	100,00	`S`	4400	10000	Revenue
4	19,00	`S`	3806	10000	Tax

Partial Credit Use Cases

The following examples illustrate JustOn's behavior when handling partial credits in different use cases.

Credit complete invoice amount, with no payment received

Credit the complete invoice amount of an open invoice. No payment has been made yet.

	Invoice	Partial Credit
Grand Total	100,00	-100,00
Balance before credit finalization	100,00	-100,00
Status before credit finalization	Open	Draft
Final Balance	0,00	0,00
Final Status	Paid	Settled

	Invoice Balances	Credit Balances

	100,00€ (Invoice)	-100,00€ (Credit)
	-100,00€ (Clearing)	100,00€ (Clearing)

Exported Balance	-	-

Credit complete invoice amount, with a 40% partial payment received

Credit the complete invoice amount of an open invoice. A partial payment of 40,00€ has been made.

	Invoice	Partial Credit
Grand Total	100,00	-100,00
Balance before credit finalization	60,00	-100,00
Status before credit finalization	Open	Draft
Final Balance	0,00	-40,00
Final Status	Paid	Open

	Invoice Balances	Credit Balances

	100,00€ (Invoice)	-100,00€ (Credit)
	-60,00€ (Clearing)	60,00€ (Clearing)
	-40,00 (Payment)

Exported Balance	-	-40,00€

Credit complete invoice amount, with a complete payment received

Credit the complete invoice amount of paid invoice. A complete payment of 100,00€ has been made.

	Invoice	Partial Credit
Grand Total	100,00	-100,00
Balance before credit finalization	0,00	-100,00
Status before credit finalization	Paid	Draft
Final Balance	0,00	-100,00
Final Status	Paid	Open

	Invoice Balances	Credit Balances

	100,00€ (Invoice)	-100,00€ (Credit)
	-100,00€ (Payment)

Exported Balance	-	-100,00€

Credit 40% of the invoice amount, with a 40% partial payment received

Credit 40,00€ of an open invoice (100,00€). A payment of 40,00€ has been made.

	Invoice	Partial Credit
Grand Total	100,00	-40,00
Balance before credit finalization	60,00	-40,00
Status before credit finalization	Open	Draft
Final Balance	20,00	0,00
Final Status	Open	Settled

	Invoice Balances	Credit Balances

	100,00€ (Invoice)	-40,00€ (Credit)
	-40,00€ (Clearing)	40,00€ (Clearing)
	-40,00€ (Payment)

Exported Balance	20,00€	-

Credit 60% of the invoice amount, with a 60% partial payment received

Credit 60,00€ of an open invoice (100,00€). A payment of 60,00€ has been made.

	Invoice	Partial Credit
Grand Total	100,00	-60,00
Balance before credit finalization	40,00	-60,00
Status before credit finalization	Open	Draft
Final Balance	0,00	-20,00
Final Status	Paid	Open

	Invoice Balances	Credit Balances

	100,00€ (Invoice)	-60,00€ (Credit)
	-40,00€ (Clearing)	40,00€ (Clearing)
	-60,00€ (Payment)

Exported Balance	-	-20,00€

Credit and Refund Workflows

The following sections illustrate likely business use cases that combine partial credit creation with payment refunds. The examples outline the involved steps and show their key results.

Refunding a payment without creating a credit

(1) Finalize invoice

(2) Register payment

(3) Refund payment

refund_uc1
Refunding a registered payment

For additional examples of complete or partial refunds, see Refund Handling Examples.

Refunding a payment with a credit issued before payment receipt

(1) Finalize invoice

(2) Create (partial) credit

(3) Register payment

(4) Refund payment

refund_uc1a
Refunding a registered payment for a partially cleared (reduced) invoice amount

Refunding a payment with a credit issued after payment receipt

(1) Finalize invoice

(2) Register payment

(3) Create (partial) credit

(4) Refund credited amount

(5) Finalize credit

refund_uc2
Refunding a registered payment after creating a (partial) credit

Refunding a payment with a credit issued after refund

(1) Finalize invoice

(2) Register payment

(3) (Partially) refund payment

(4) Create (partial) credit

(5) Finalize credit

refund_uc3
Refunding a registered payment before creating a (partial) credit