Situation

You have a credit note (CN) and an outstanding invoice (INV) for the same client, but the credit note amount is greater than the invoice amount. You have already refunded the difference to the client via bank transfer.

Example:

  • Credit note: €67.90
  • Invoice: €30.20
  • Refund to client via bank transfer: €37.70 (= €67.90 − €30.20)

In this case, the reconciliation is done in 4 steps.

Procedure

Step 1 — Reconcile the invoice using the payment method "Credit Note"

  1. Go to the outstanding invoice (INV) in the list of unpaid invoices/receipts.
  2. Click the 1-icon (the button preceding the invoice) to register a payment.
  3. Set the payment method to Credit Note.
  4. Leave the amount set to the invoice amount (in this example: €30.20).
  5. Click Save.

Step 2 — Adjust the payment to the CN amount

  1. After saving, you will see the blue underlined payment amount (€30.20) in the invoice row. Click on it to edit the payment.
  2. Change the amount to the full credit note amount (in this example: €67.90).
  3. Click Save.
  4. The invoice now shows the status "Overpaid" — this is normal and expected.

Step 3 — Register the refund via bank transfer

  1. Because a payment difference exists on the invoice, the 1-icon becomes active again.
  2. Click on it to add a second payment.
  3. Set the payment method to Bank Transfer.
  4. The amount has already been automatically calculated by Fuga (in this example: −€37.70).
  5. Click Save. The invoice is now fully reconciled.

Step 4 — Reconcile the credit note using the payment method "Invoice"

  1. Go to the credit note (CN).
  2. Click the 1-icon preceding the credit note.
  3. Set the payment method to Invoice.
  4. Make sure the "Partial payment" checkbox is unchecked, so that the full credit note is reconciled.
  5. Click Save. The credit note is now fully reconciled.

Result

After these 4 steps, both the invoice and the credit note are fully reconciled. The cash register balance is €0 (the cash portion has been neutralised), and the bank transfer of €37.70 is correctly recorded in the accounting as a refund to the client.

Reverse situation: invoice greater than credit note (INV > CN)

When the invoice is greater than the credit note, the reconciliation process is different and simpler:

  • Reconcile the credit note (CN) as "Cash" (for the CN amount).
  • Reconcile the invoice (INV): register the CN amount as "Cash" (compensation) and the remaining outstanding amount using the payment method with which the client actually paid.

This scenario is simpler in Fuga because the invoice can always receive multiple payments.