Scope

How to create a credit note once I void an invoice?

As per our law, we should have a credit note for every voided invoice

Summary

As per law in the Nordic countries (and some EU regions like Germany and France), you must void an invoice and regenerate a new one when you generate an incorrect invoice. While voiding the invoice, the original invoice must be adjusted by a separate document equivalent to a negative invoice (a cancellation invoice), which acts as an indicator that the original invoice stands canceled. Once the Void Invoice with Credit Note setting is enabled from the backend, this feature will not be displayed on the UI; however, when an invoice is voided, a credit note is automatically created.

Contact support, to avail of the Void invoice with credit note setting on your Chargebee site

With the help of "The line items' billing period on the invoice" settings, the service period for the line items in the credit notes will be the same as their respective billing periods on the invoice.
Navigate to Settings > Configure Chargebee > Billing LogIQ > Billing & Invoices > Set default service period for credit note line items. Please refer to this link for more information.

Solution

By default, when you void an invoice in Chargebee, the original invoice gets voided but no Credit Note or Cancellation invoice is created or associated. If you are a business selling in Nordic countries, use the void invoice with credit note workflow. A credit note is created and applied to the voided invoice automatically.

Contact support, to avail of the Void invoice with credit note setting on your Chargebee site

Once the Void Invoice with Credit Note setting is enabled from the backend, this feature will not be displayed on the UI; however, when an invoice is voided, a credit note is automatically created.

When you void an invoice after the setting is enabled, a system-generated credit note gets associated with the voided invoice, and the reason code on the credit note is specified as Voided. Any existing voided invoices generated before enabling this setting will continue to remain in the system as Voided with no credit notes attached. Voiding an invoice through APIs will also follow the same configuration.

You can only use either the default void workflow (without this feature enabled) or the void with a credit note workflow (with this feature enabled). You can use either one of these options on your site.

Invoice PDF after enabling Void invoice with a credit note

Credit note PDF after enabling Void invoice with a credit note

Note:
You cannot remove or delete the system-generated credit note associated with the voided invoice. Similarly, you cannot delete the voided invoice from the system either.

When the dunning period ends and you’ve configured the Void invoice with credit note setting, the invoices are voided with a credit note. However, if the setting is not enabled, the invoices are voided without any credit note attached.