How to show both a bill and bill credit note as settled in FreeAgent.
If you receive a bill credit note from one of your suppliers, so that you don’t have to pay all or part of an bill you’ve already received from them, you’ll want to show both the bill and the bill credit note as settled in FreeAgent.
But there’s no “netting off” mechanism as such.
Instead, you need to enter a dummy payment against the bill and a dummy receipt against the bill credit note.
Here’s how to do that.
On the list of bills here, you can see a bill for £200 including VAT, and a bill credit note for the same amount. The bill credit note cancels out the bill.
Click on the bill to go to it...
...and click the Pay Bill button.
Enter a manual bill payment, settling the bill in full, as at the bill credit note’s date, because this is likely to be the date on which you want the net off to show.
Click Create and Add Another, to add another transaction.
Enter a Bill Refund (which you’ll find on the Type list under Money In) against the credit note, dated the same day as the manual bill payment.
Make sure you pick the correct bill credit note from the drop-down list.
Create this entry.
Once you’ve done this, both the bill and the bill credit note will show as settled, the bill as paid and the bill credit note as refunded, on the Bills screen.
And if you then go to the Banking screen and click on your primary account, you’ll see a receipt and a payment for the same amount, cancelling each other out.
That’s it. Job done.
If the bill credit note only settles part of the bill, then follow the same steps, but when you enter the bill payment, only enter the amount that’s covered by the bill credit note. This is so that the payment and refund in the bank account are the same. The bill will show as due but it will have a lock beside its name to show that a payment has been entered against it.
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