Finance & Accounts

Overview

Main Concepts

Introduction to Flectra Accounting:

Transcript

Flectra is beautiful accounting software designed for the needs of the 21st century.

Flectra connects directly to your bank or paypal account. Transactions are synchronized every hour and reconciliation is blazing fast. It's like magic.

Instantly create invoices and send them with just a click. No need to print them.

Flectra can send them for you by email or regular mail.

Your customers pay online, meaning you get your money right away.

Flectra accounting is connected with all Flectra our apps such as sale, purchase, inventory and subscriptions.

This way, recording vendor bills is also super quick. Set a vendor, select the purchase order and Flectra fills in everything for you automatically.

Then, just use the SEPA protocol or print checks to pay vendors in batches.

It's that easy with Flectra.

Wait, there is more. You will love the Flectra reports. From legal statements to executive summaries, they are fast and dynamic. Use Flectra's business intelligence feature to navigate through all your companies data.

Of course, Flectra is mobile too. You can use it to check your accounts on the go.

The Accounting behind Flectra:

This page summarises the way Flectra deals with typical accounts and transactions.

Double-entry bookkeeping

Flectra automatically creates all the behind-the-scenes journal entries for each of your accounting transactions: customer invoices, point of sale order, expenses, inventory moves, etc.

Flectra uses the rules of double-entry bookkeeping system: all journal entries are automatically balanced (sum of debits = sum of credits).

Accrual and Cash Basis Methods

Flectra support both accrual and cash basis reporting. This allows you to report income / expense at the time transactions occur (i.e., accrual basis), or when payment is made or received (i.e., cash basis).

Multi-companies

Flectra allows to manage several companies within the same database. Each company has its own chart of accounts and rules. You can get consolidation reports following your consolidation rules.

Users can access several companies but always work in one company at a time.

Multi-currencies

Every transaction is recorded in the default currency of the company. For transactions occurring in another currency, Flectra stores both the value in the currency of the company and the value in the currency of the transaction. Flectra can generate currencies gains and losses after the reconciliation of the journal items.

Currency rates are updated once a day using a yahoo.com online web-service.

International Standards

Flectra accounting support more than 50 countries. The Flectra core accounting implement accounting standards that is common to all countries and specific modules exists per country for the specificities of the country like the chart of accounts, taxes, or bank interfaces.

In particular, Flectra's core accounting engine supports:

  • Anglo-Saxon Accounting (U.S., U.K.,, and other English-speaking countries including Ireland, Canada, Australia, and New Zealand) where cost of good sold are reported when products are sold/delivered.
  • European accounting where expenses are accounted at the supplier bill.
  • Storno accounting (Italy) where refund invoices have negative credit/debit instead of a reverting the original journal items.

Flectra also have modules to comply with IFRS rules.

Accounts Receivable & Payable

By default, Flectra uses a single account for all account receivable entries and one for all accounts payable entries. You can create separate accounts per customers/suppliers, but you don't need to.

As transactions are associated to customers or suppliers, you get reports to perform analysis per customer/supplier such as the customer statement, revenues per customers, aged receivable/payables, ...

Wide range of financial reports

In Flectra, you can generate financial reports in real time. Flectra's reports range from basic accounting reports to advanced management reports. Flectra's reports include:

  • Performance reports (such as Profit and Loss, Budget Variance)
  • Position reports (such as Balance Sheet, Aged Payables, Aged Receivables)
  • Cash reports (such as Bank Summary)
  • Detail reports (such as Trial Balance and General Ledger)
  • Management reports (such as Budgets, Executive Summary)

Flectra's report engine allows you to customize your own report based on your own formulae.

Import bank feeds automatically

Bank reconciliation is a process that matches your bank statement lines, as supplied by the bank, to your accounting transactions in the general ledger. Flectra makes bank reconciliation easy by frequently importing bank statement lines from your bank directly into your Flectra account. This means you can have a daily view of your cashflow without having to log into your online banking or wait for your paper bank statements.

Flectra speeds up bank reconciliation by matching most of your imported bank statement lines to your accounting transactions. Flectra also remembers how you've treated other bank statement lines and provides suggested general ledger transactions.

Calculates the tax you owe your tax authority

Flectra totals all your accounting transactions for your tax period and uses these totals to calculate your tax obligation. You can then check your sales tax by running Flectra's Tax Report.

Inventory Valuation

Flectra support both periodic (manual) and perpetual (automated) inventory valuations. The available methods are standard price, average price, LIFO (for countries allowing it) and FIFO.

Easy retained earnings

Retained earnings is the portion of income retained by your business. Flectra automatically calculates your current year earnings in real time so no year-end journal or rollover is required. This is calculated by reporting the profit and loss balance to your balance sheet report automatically.

Accounting Memento For Entrepreneurs (US GAAP):

The Profit and Loss (P&L) report shows the performance of the company over a specific period (usually the current year).

  • The Gross Profit equals the revenues from sales minus the cost of goods sold.

  • Operating Expenses (OPEX) include administration, sales and R&D salaries as well as rent and utilities, miscellaneous costs, insurances, … anything beyond the costs of products sold.

The Balance Sheet is a snapshot of the company's finances at a specific date (as opposed to the Profit and Loss which is an analysis over a period)

  • Assets represent the company's wealth, things it owns. Fixed assets includes building and offices, current assets include bank accounts and cash. A client owing money is an asset. An employee is not an asset.

  • Liabilities are obligations from past events that the company will have to pay in the future (utility bills, debts, unpaid suppliers).

  • Equity is the amount of the funds contributed by the owners (founders or shareholders) plus previously retained earnings (or losses).

    Each year, net profits (or losses) are reported to retained earnings.

Getting Started

How to setup Flectra Accounting?

The Flectra Accounting application has an implementation guide that you should follow to configure it. It's a step-by-step wizard with links to the different screens you will need.

Once you have installed the Accounting application, you should click on Settings --> Dashborard the Implementation part to get access to the implementation guide.

The implementation guide will help you through the following steps:

  1. Completing your company settings
  2. Entering in your bank accounts
  3. Selecting your chart of accounts
  4. Confirming your usual tax rates
  5. Setting up any foreign currencies
  6. Importing your customers
  7. Importing your suppliers
  8. Importing your products
  9. Importing your outstanding transactions
  10. Importing your starting balances
  11. Define the users for accountingOnce a step is done, you can click on the "Mark as Done" button, in the bottom of the screen. That way, you can track the progress of your overall configuration of Flectra.

Process overview

From Customer Invoice to Payments Collection:

Flectra supports multiple invoicing and payment workflows, so you can choose and use the ones that match your business needs. Whether you want to accept a single payment for a single invoice, or process a payment spanning multiple invoices and taking discounts for early payments, you can do so efficiently and accurately.

From Draft Invoice to Profit and Loss

If we pick up at the end of a typical 'order to cash' scenario, after the goods have been shipped, you will: issue an invoice; receive payment; deposit that payment at the bank; make sure the Customer Invoice is closed; follow up if Customers are late; and finally present your Income on the Profit and Loss report and show the decrease in Assets on the Balance Sheet report.

Invoicing in most countries occurs when a contractual obligation is met. If you ship a box to a customer, you have met the terms of the contract and can bill them. If your supplier sends you a shipment, they have met the terms of that contract and can bill you. Therefore, the terms of the contract is fulfilled when the box moves to or from the truck. At this point, Flectra supports the creation of what is called a Draft Invoice by Warehouse staff.

Invoice creation

Draft invoices can be manually generated from other documents such as Sales Orders, Purchase Orders,etc. Although you can create a draft invoice directly if you would like.

An invoice must be provided to the customer with the necessary information in order for them to pay for the goods and services ordered and delivered. It must also include other information needed to pay the invoice in a timely and precise manner.

Draft invoices

The system generates invoice which are initially set to the Draft state. While these invoices

remain unvalidated, they have no accounting impact within the system. There is nothing to stop users from creating their own draft invoices.

Let's create a customer invoice with following information:

  • Customer: Agrolait
  • Product: iMac
  • Quantity: 1
  • Unit Price: 100
  • Taxes: Tax 15%

 

The document is composed of three parts:

  • the top of the invoice, with customer information,
  • the main body of the invoice, with detailed invoice lines,
  • the bottom of the page, with detail about the taxes, and the totals.

Open or Pro-forma invoices

An invoice will usually include the quantity and price the of goods and/or services, the date, any parties involved, the unique invoice number, and any tax information.

"Validate" the invoice when you are ready to approve it. The invoice then moves from the Draft state to the Open state.

When you have validated an invoice, Flectra gives it a unique number from a defined, and modifiable, sequence.

Accounting entries corresponding to this invoice are automatically generated when you validate the invoice. You can see the details by clicking on the entry in the Journal Entry field in the "Other Info" tab.

A typical journal entry generated from a validated invoice will look like as follows:

Account Partner Due date Debit Credit
Accounts Receivable Agrolait 01/07/2015 115  
Taxes Agrolait     15
Sales       100

Payment

In Flectra, an invoice is considered to be paid when the associated accounting entry has been reconciled with the payment entries. If there has not been a reconciliation, the invoice will remain in the Open state until you have entered the payment.

A typical journal entry generated from a payment will look like as follows:

Account Partner Due date Debit Credit
Bank Agrolait   115  
Accounts Receivable Agrolait     115

Receive a partial payment through the bank statement

You can manually enter your bank statements in Flectra, or you can import them in from a csv file or from several other predefined formats according to your accounting localisation.

Create a bank statement from the accounting dashboard with the related journal and enter an amount of $100 .

After validating the customer invoice, you can directly send it to the customer via the 'Send by email' functionality.

You can now go through every transaction and reconcile them or you can mass reconcile with instructions at the bottom.

After reconciling the items in the sheet, the related invoice will now display "You have outstanding payments for this customer. You can reconcile them to pay this invoice. "

Payment Followup

There's a growing trend of customers paying bills later and later. Therefore, collectors must make every effort to collect money and collect it faster.

Flectra will help you define your follow-up strategy. To remind customers to pay their outstanding invoices, you can define different actions depending on how severely overdue the customer is. These actions are bundled into follow-up levels that are triggered when the due date of an invoice has passed a certain number of days. If there are other overdue invoices for the same customer, the actions of the most overdue invoice will be executed.

By going to the customer record and diving into the "Overdue Payments" you will see the follow-up message and all overdue invoices.

Customer aging report:

The customer aging report will be an additional key tool for the collector to understand the customer credit issues, and to prioritize their work.

Use the aging report to determine which customers are overdue and begin your collection efforts.

Profit and loss

The Profit and Loss statement displays your revenue and expense details. Ultimately, this gives you a clear image of your Net Profit and Loss. It is sometimes referred to as the "Income Statement" or "Statement of Revenues and Expenses."

Balance sheet

The balance sheet summarizes the your company's liabilities, assets and equity at a specific moment in time.

For example, if you manage your inventory using the perpetual accounting method, you should expect a decrease in account "Current Assets" once the material has been shipped to the customer.

From Vendor Bill to Payment:

Once vendor bills are registered in Flectra, you can easily pay vendors for the correct amount and at the right time (not too late, not too early; depending on your vendor policy). Flectra also offers reports to track your aged payable balances.

If you want to control vendor bills received from your vendors, you can use the Flectra Purchase application that allows you to control and pre-complete them automatically based on past purchase orders.

From Vendor Bill to Payment

Record a new vendor bill

When a vendor bill is received, you can record it from Purchases ? Vendor Bills in the Accounting application. As a shortcut, you can also use the New Bill feature on the accounting dashboard.

To register a new vendor bill, start by selecting a vendor and inputting their invoice as the Vendor Reference, then add and confirm the product lines, making sure to have the right product quantities, taxes and prices.

Save the invoice to update the pre tax and tax amounts at the bottom of the screen. You will most likely need to configure the prices of your products without taxes as Flectra will compute the tax for you.

Note

On the bottom left corner, Flectra shows a summary table of all taxes on the vendor bill. In several countries, different methods are accepted to round the totals (round per line, or round globally). The default rounding method in Flectra is to round the final prices per line (as you may have different taxes per product. E.g. Alcohol and cigarettes). However if your vendor has a different tax amount on their bill, you can change the amount in the bottom left table to adjust and match.

Validate The Vendor Bill

Once the vendor bill is validated, a journal entry will be generated based on the configuration on the invoice. This journal entry may differ depending on the the accounting package you choose to use.

For most European countries, the journal entry will use the following accounts:

  • Accounts Payable: defined on the vendor form
  • Taxes: defined on the products and per line
  • Expenses: defined on the line item product used

For Anglo-Saxon (US) accounting, the journal entry will use the following accounts:

  • Accounts Payable: defined on the vendor form
  • Taxes: defined on the products and per line
  • Goods Received: defined on the product form

You can check your Profit & Loss or the Balance Sheet reports after having validated a couple of vendor bills to see the impact on your general ledger.

Pay a bill

To create a payment for an open vendor bill directly, you can click on Register a Payment at the top of the form.

From there, you select the payment method (i.e. Checking account, credit card, check, etc…) and the amount you wish to pay. By default, Flectra will propose the entire remaining balance on the bill for payment. In the memo field, we recommend you set the vendor invoice number as a reference (Flectra will auto fill this field from the from the vendor bill if set it correctly).

Note

You can also register a payment to a vendor directly without applying it to a vendor bill. To do that, Purchases ? Payments. Then, from the vendor bill you will be able to reconcile this payment with directly.

Printing vendor Checks

If you choose to pay your vendor bills by check, Flectra offers a method to do so directly from your vendor payments within Flectra. Whether you do so on a daily basis or prefer to do so at the end of the week, you can print in checks in batches.

If you have checks to print, Flectra's accounting dashboard acts as a to do list and reminds you of how many checks you have left to be printed.

By selecting the amount of checks to be printed, you can dive right into a list of all payments that are ready to be processed.

Select all the checks you wish to print (use the first checkbox to select them all) and set the action to Print Checks. Flectra will ask you to set the next check number in the sequence and will then print all the checks at once.

 

Account Receivables


 

Customer Invoices

Overview of the invoicing process

Depending on your business and the application you use, there are different ways to automate the customer invoice creation in Flectra. Usually, draft invoices are created by the system (with information coming from other documents like sales order or contracts) and accountant just have to validate draft invoices and send the invoices in batch (by regular mail or email).

Depending on your business, you may opt for one of the following way to create draft invoices:

Sales

Sales Order ? Invoice

In most companies, salespeople create quotations that become sales order once they are validated. Then, draft invoices are created based on the sales order. You have different options like:

  • Invoice manually: use a button on the sale order to trigger the draft invoice
  • Invoice before delivery: invoice the full order before triggering the delivery order
  • Invoice based on delivery order: see next section

Invoice before delivery is usually used by the eCommerce application when the customer pays at the order and we deliver afterwards. (pre-paid)

For most other use cases, it's recommended to invoice manually. It allows the salesperson to trigger the invoice on demand with options: invoice the whole order, invoice a percentage (advance), invoice some lines, invoice a fixed advance.

This process is good for both services and physical products.

Sales Order ? Delivery Order ? Invoice

Retailers and eCommerce usually invoice based on delivery orders, instead of sales order. This approach is suitable for businesses where the quantities you deliver may differs from the ordered quantities: foods (invoice based on actual Kg).

This way, if you deliver a partial order, you only invoice for what you really delivered. If you do back orders (deliver partially and the rest later), the customer will receive two invoices, one for each delivery order.

eCommerce Order ? Invoice

An eCommerce order will also trigger the creation of the order when it is fully paid. If you allow paying orders by check or wire transfer, Flectra only creates an order and the invoice will be triggered once the payment is received.

Contracts

Regular Contracts ? Invoices

If you use contracts, you can trigger invoice based on time and material spent, expenses or fixed lines of services/products. Every month, the salesperson will trigger invoice based on activities on the contract.

Activities can be:

  • fixed products/services, coming from a sale order linked to this contract
  • materials purchased (that you will re-invoiced)
  • time and material based on timesheets or purchases (subcontracting)
  • expenses like travel and accommodation that you re-invoice to the customer

You can invoice at the end of the contract or trigger intermediate invoices. This approach is used by services companies that invoice mostly based on time and material. For services companies that invoice on fix price, they use a regular sales order.

Recurring Contracts ? Invoices

For subscriptions, an invoice is triggered periodically, automatically. The frequency of the invoicing and the services/products invoiced are defined on the contract.

Others

Creating an invoice manually

Users can also create invoices manually without using contracts or a sales order. It's a recommended approach if you do not need to manage the sales process (quotations), or the delivery of the products or services.

Even if you generate the invoice from a sales order, you may need to create invoices manually in exceptional use cases:

  • if you need to create a refund
  • If you need to give a discount
  • if you need to change an invoice created from a sales order
  • if you need to invoice something not related to your core business

Specific modules

Some specific modules are also able to generate draft invoices:

  • membership: invoice your members every year
  • repairs: invoice your after-sale services

 

How to setup cash discounts?


Cash discounts are an incentive (usually a small percentage) that you offer to customers in return for paying a bill owed before the scheduled due date. If used properly, cash discounts improve the Days Sales Outstanding aspect of a business's cash conversion cycle.

For example, a typical cash discount would be: you offer a 2% discount on an invoice due in 30 days if the customer were to pay within the first 5 days of receiving the invoice.

Configuration

Payment terms

In order to manage cash discounts, we will use the payment terms concept of Flectra (From the Accounting module, go to Configuration ? Management ? Payment terms ? Create).

Let's start with the above example: a 2% discount on an invoice due in 30 days if the customer were to pay within the first 5 days.

A typical payment term of 30 days would have only one installment: balance in 30 days. But, in order to configure the cash discount, you can configure the payment term with two installments:

  • 98% within 5 days
  • balance within 30 days

To make it clear that it's not a payment term but a cash discount, don't forget to set a clear description that will appear on the invoice: Invoice is due within 30 days, but you can benefit from a 2% cash discount if you pay within 5 days.

Bank reconciliation model

In order to speed up the bank reconciliation process, we can create a model of entry for all cash discounts. To do that, from the Accounting application dashboard, click on the "More" link on the bank and choose the option "Reconciliation Models".

Create a new model for cash discounts as follow:

  • Button Label: Cash Discount
  • Account: Cash Discount (according to your country)
  • Amount Type: Percentage
  • Amount: 100%
  • Taxes: depending on your country, you may put a tax on the cash

    discount if taxes have to be deduced

 

Tip

Even if it's a 2% cash discount, set a 100% amount on the reconciliation model as it means 100% of the remaining balance (the 2%). You can use the same reconciliation model for all your cash discount. No need to create a model per payment term.

Creating an invoice with a cash discount

When you create a customer invoice, set the right payment term "30 days, 2% cash discount" right after having selected the customer.

Once the invoice is validated, Flectra will automatically split the account receivable part of the journal entry with two installments having a different due date: 98% within 5 days, 2% within 30 days.

Payment

Paying the invoice with a cash discount

If the customer pays with a cash discount, when processing the bank statement, you will match the payment (98%) with the related line in the journal entry.

As you can see in the above screenshot, when selecting the customer, you also see the 2% remaining of 3$. If you want to accept the cash discount (if the customer paid within the 5 days), you can click on this line with 2%, click on "Open Balance", and select your "Cash Discount" reconciliation model. That way, the invoice is marked as fully paid.

Paying the invoice in full

If the customer pays the invoice fully, without benefiting from the cash discount, you will reconcile the payment (in full) with the two lines from the invoice (98% and 2%). Just click on the two lines to match them with the payment.


 

Set up cash roundings


In some currencies, the smallest coins do not exist. For example, in Switzerland, there is no coin for 0.01 CHF. For this reason, if invoices are paid in cash, you have to round their total amount to the smallest coin that exist in the currency. For the CHF, the smallest coin is 0.05 CHF.

There are two strategies for the rounding:

  1. Add a line on the invoice for the rounding
  2. Add the rounding in the tax amount

Both strategies are applicable in Flectra.

Configuration

First, you have to activate the feature. For this, go in Accounting ? Configuration ? Settings and activate the Cash Rounding.

There is a new menu to manage cash roundings in Accounting ? Configuration ? Management ? Cash roundings.

Now, you can create cash roundings. You can choose between two rounding strategies:

  1. Add a rounding line: if a rounding is necessary, Flectra will add a line on your customer invoice to take this rounding into account. You also have to define the account in which the rounding will go.
  2. Modify tax amount: Flectra will add the rounding to the amount of the highest tax.

Apply roundings

Once your roundings are created, you can apply them on customer invoices. On the customer invoices, there is a new field called Cash Rounding Method where you can simply choose one of the rounding methods created previously. If needed, a rounding will be applied to the invoice.


 

How to setup and use payment terms


Payment terms define the conditions to pay an invoice. They apply on both customer invoices and supplier bills.

Example, for a specific invoice:

  • Pay 50% within 10 days
  • Pay the remaining balance within 30 days

Note

Payment terms are different from invoicing in several areas. If, for a specific order, you invoice the customer in two parts, that's not a payment term but invoice conditions.

Configuration

Configure your usual payment terms from the Configuration menu of the Account application. The description of the payment term is the one that appear on the invoice or the sale order.

A payment term may have one line (ex: 21 days) or several lines (10% within 3 days and the balance within 21 days). If you create a payment term with several lines, be sure the latest one is the balance. (avoid doing 50% in 10 days and 50% in 21 days because, with the rounding, it may not do exactly 100%)

Using Payment Terms

Payment terms for customers

Payment terms can be set on:

  • a customer: to apply this payment term automatically on new sale orders or invoices for this customer. Set payment terms on customers if you grant this payment term for all future orders of this customer.
  • a quotation: to apply this payment term on all invoices created from this quotation or sale order, but not on other quotations
  • an invoice: to apply the payment term on this invoice only

If an invoice has a payment term, the journal entry related to the invoice is different. Without payment term or tax, an invoice of $100 will produce this journal entry:

Account Due date Debit Credit
Account Receivable   100  
Income     100

If you do an invoice the 1st of January with a payment term of 10% within 3 days and the balance within 30 days, you get the following journal entry:

Account Due date Debit Credit
Account Receivable Jan 03 10  
Account Receivable Jan 30 90  
Income     100

In the customer statement, you will see two lines with different due dates.

Payment terms for vendor bills

The easiest way to manage payment terms for vendor bills is to record a due date on the bill. You don't need to assign a payment term, just the due date is enough.

But if you need to manage vendor terms with several installments, you can still use payment terms, exactly like in customer invoices. If you set a payment term on the vendor bill, you don't need to set a due date. The exact due date for all installments will be automatically created.

See also

How to setup cash discounts?


 

How to define an installment plan on customer invoices?


In order to manage installment plans related to an invoice, you should use payment terms in Flectra. They apply on both customer invoices and supplier bills.

Example, for a specific invoice:

  • Pay 50% within 10 days
  • Pay the remaining balance within 30 days

Note

payment terms are not to be confused with a payment in several parts. If, for a specific order, you invoice the customer in two parts, that's not a payment term but an invoice policy.

Configuration

Configure your usual installment plans from the application Invoicing ? Configuration ? Management ? Payment Terms.

A payment term may have one line (eg: 21 days) or several lines (10% within 3 days and the balance within 21 days). If you create a payment term with several lines, make sure the latest one is the balance. (avoid doing 50% in 10 days and 50% in 21 days because, with the rounding, it may not compute exactly 100%)

Tip

The description of the payment term will appear on the invoice or the sale order.

Payment terms for customers

You can set payment terms on:

  • a customer: the payment term automatically applies on new sales orders or invoices for this customer. Set payment terms on customers if you grant this payment term for all future orders for this customer.
  • a quotation: the payment term will apply on all invoices created from this quotation or sale order, but not on other quotations
  • an invoice: the payment term will apply on this invoice only

If an invoice contains a payment term, the journal entry related to the invoice is different. Without payment term, an invoice of $100 will produce the following journal entry (for the clarity of the example, we did not set any tax on the invoice):

Account Due date Debit Credit
Account Receivable   100  
Income     100

If you do an invoice the 1st of January with a payment term of 10% within 3 days and the balance within 30 days, you get the following journal entry:

Account Due date Debit Credit
Account Receivable Jan 03 10  
Account Receivable Jan 30 90  
Income     100

On the customer statement, you will see two lines with different due dates. To get the customer statement, use the menu Sales > Customers Statement.

See also


 

How to edit or refund an invoice?


In Flectra, it's not possible to modify an invoice that has been validated and sent to the customer. If a mistake was made on a validated invoice, the legal way to handle that is to create a credit note of the invoice, reconcile it with the original invoice to close them and create a new invoice.

Modifying a validated invoice

If you need to modify an existing invoice, use the Add Credit Note button on the invoice. In the refund method field, select "Modify: create a credit note, reconcile, and create a new draft invoice".

Flectra will automatically:

  • Create a credit note for your invoice
  • Reconcile the refund invoice with the original invoice (marking both as Paid)
  • Create a new draft invoice you can modify

Then, you can modify the draft invoice and validate it once it's correct.

Cancelling an invoice

If you need to cancel an existing invoice, use the Add Credit Note button on the invoice. In the refund method field, select "Cancel: create a credit note and reconcile".

Flectra will automatically:

  • Create a credit note for your invoice
  • Reconcile the refund invoice with the original invoice (marking both as Paid)

Nothing else needs to be done. You can send the refund by regular mail or email to your customer, if you already sent the original invoice.

Refunding part of an invoice

If you need to refund an existing invoice partially, use the Add Credit Note button on the invoice. In the refund method field, select "Create a draft refund".

Flectra will automatically create a draft credit note. You may modify the credit note (example: remove the lines you do not want to refund) and validate it. Then, send the credit note by regular mail or email to your customer.

Tip

Refunding an invoice is different from refunding a payment. Usually, a credit note is sent before the customer has done a payment. If the customer has already paid, they should be reimbursed by doing a customer payment refund.


 

Customer Payments