What are the actions that can be performed on a refundable credit note?

Modified on: Thu, 30 Jun, 2022 at 8:29 AM

Scope

What is a refundable credit note?

When can I create a refundable credit note?

How is a refundable credit note created automatically?

What are the options available in a Refundable credit note?


Summary

Refundable Credit Note can be created if you would like to repay a certain amount to the customer. This can be retained as credits which are then automatically applied to upcoming invoices and you can also choose to apply them to existing unpaid invoices, (or) refund the amount.

Solution

In Chargebee, Refundable Credits are automatically created when:

  • Credit note from Invoice:

  1. If the invoice is in the Paid state, then you will be able to create a Credit Note to provide refundable credits.

  2. If the invoice is partially paid, you can choose to either adjust the due amount for the unpaid amount or provide credits against the paid amount.

 

  • Subscription Change:

  1. A subscription is changed with the proration enabled and the current term's invoice is in the Paid state. Here, the Refundable Credits will be automatically applied to the forthcoming invoices or you can choose to refund the credits to the original payment method.

Note: Refundable Credits appear as "Credits" in the invoice. Also, the Refundable credit will have the status as ‘Refund Due’ marked in ‘Red’.

     

  1. Refunding Credit Note:

    1. Navigate from Invoices & Credit Notes > Credit Notes > Choose a Refund due credit note > ellipsis(...) > Issue a refund.

    2. You can provide a partial refund or complete refund.            

 


  1. Credit Note allocation for the upcoming invoice:


You can check the credit note allocated on the Customer details page which will be applied to the upcoming invoice if not refunded.



2. Subscription Change:

If you change the subscription, and if there are any credits that need to be applied back to the customer, it will be applied as a Refundable credit back to his CB account. It can either be refunded or allocated for the upcoming invoices.

 

Related Articles:


How to create a credit note?

Why am I unable to refund the refundable credits present on a credit note?

Can one credit note be applied to two invoices?‌

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