How to Use Credit Notes and Debit Notes in FalconPro Real Estate Software

How to Use Credit Notes and Debit Notes in FalconPro Real Estate Software

Introduction

In FalconPro Real Estate Software, credit notes and debit notes are essential tools for correcting financial transactions. A credit note is issued to a customer when a refund or adjustment is required, while a debit note is used for supplier adjustments or expense corrections.

Credit notes are commonly used when refunding a tenant due to lease contract termination or overpayment. Debit notes, on the other hand, are used when a supplier refunds an amount or when an expense needs correction.

This guide provides a step-by-step explanation of how to issue and manage credit notes and debit notes in FalconPro.

1. When to Use a Credit Note

A credit note is issued when the company needs to adjust or reduce an amount due from a customer. It is typically used in the following situations:

  • A tenant’s lease contract is terminated, and a refund must be issued.
  • A billing mistake was made, and the customer was overcharged.
  • A refund is given to a client for a service not provided or for any reason related to an incorrect transaction.

Once a credit note is issued, the customer’s balance is adjusted, reducing their payable amount.

2. Issuing a Credit Note for a Lease Contract Termination

If a lease contract is terminated and the tenant is entitled to a refund, a credit note must be generated from the leasing contract module.

Steps to Issue a Credit Note from a Lease Contract

  1. Open FalconPro and go to the Leasing Module.
  2. Select “Contracts” and search for the terminated contract.
  3. Navigate to the “Final Settlement” tab.
  4. Click “Generate Credit Note”.
  5. FalconPro will automatically calculate the refundable amount.
  6. Verify the details, including VAT adjustments.
  7. Click “Save”.

After saving, the system will automatically apply the credit note to the tenant’s account. Since the refund is directly linked to the lease contract, no manual General Voucher (GV) is needed.

3. Issuing a Credit Note for Overpayments or Adjustments

If a customer was overcharged or a mistake was made in billing, a manual credit note must be issued.

Steps to Issue a Manual Credit Note in the Accounting Module

  1. Go to “Accounting” and select “Credit Notes”.
  2. Click “New Credit Note”.
  3. Select the customer from the list.
  4. Choose the account that needs adjustment (e.g., revenue or VAT).
  5. Enter the credit amount and reason for issuing the credit note.
  6. FalconPro will automatically generate a General Voucher (GV) with the correct debit and credit entries.
  7. Click “Save”.

This credit note will now be reflected in the customer’s account, reducing their balance.

4. When to Use a Debit Note

A debit note is issued when the company needs to adjust an amount due to a supplier or correct an expense.

A debit note is typically used when:

  • A supplier refunds an overpayment made by the company.
  • A correction is needed for an expense recorded in the system.
  • An adjustment is required for VAT calculations on a supplier invoice.

Once a debit note is issued, the supplier’s balance is adjusted, increasing the payable amount.

5. Issuing a Debit Note for a Supplier Refund

When a supplier returns an amount due to an overpayment or incorrect billing, a debit note must be created to adjust the payable balance.

Steps to Issue a Debit Note in FalconPro

  1. Go to “Accounting” and select “Debit Notes”.
  2. Click “New Debit Note”.
  3. Select the supplier from the list.
  4. Enter the refund amount and description.
  5. Choose the expense or VAT account that needs adjustment.
  6. FalconPro will generate a General Voucher (GV) with the correct debit and credit adjustments.
  7. Click “Save”.

Now, the supplier’s balance is updated to reflect the adjustment.

6. Key Differences Between Credit Notes and Debit Notes

  • A credit note is issued to customers, reducing their payable amount.
  • A debit note is issued for suppliers, adjusting expenses or increasing the payable amount.
  • Lease contract-related credit notes should always be issued from the leasing module.
  • Manual credit notes and debit notes are issued from the accounting module when needed for other adjustments.

7. Best Practices for Managing Credit and Debit Notes in FalconPro

  • Always issue lease-related credit notes from the leasing contract module to avoid errors.
  • Use the accounting module for service refunds or adjustments unrelated to lease contracts.
  • Verify VAT calculations before issuing credit or debit notes.
  • Ensure that the correct accounts are selected when creating a debit note for supplier adjustments.
  • Review all generated General Vouchers (GVs) to confirm that adjustments have been correctly applied.

Conclusion

FalconPro Real Estate Software provides an efficient way to manage credit notes and debit notes, ensuring that lease terminations, customer refunds, and supplier adjustments are properly recorded. By following these steps, businesses can ensure accurate financial records and smooth transaction adjustments.

FAQs

1. What is the difference between a credit note and a debit note?

A credit note is issued to customers (to refund amounts), while a debit note is issued for suppliers (to adjust expenses or refunds).

2. When should I issue a credit note from the leasing contract?

A credit note should be issued from the leasing contract module whenever a tenant is eligible for a refund due to contract termination. FalconPro will automatically adjust the amount.

3. What happens if a supplier refunds an amount to my company?

A debit note should be issued to adjust the supplier’s balance, ensuring the refund is recorded correctly.

4. Can I issue a credit note for VAT adjustments?

Yes, FalconPro allows issuing credit notes specifically for VAT corrections when necessary.

5. How do I check if a credit or debit note has been applied?

Go to “Accounting → Credit Notes” or “Debit Notes”, and check the status of the transaction.

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