Katamaze Documentation

Credit notes, reverse invoices, invoices and proformas

Proforma vs Invoices

In WHMCS there's a clear distinction between proformas and invoices. We're going to explain the differences in case you don't know what is a proforma. An invoice, also known as commercial invoice, is a real invoice and an official document with a sequential number. A proforma, even if in WHMCS it looks like an invoice (they use the same style), it is not a real invoice. Nothing has been billed yet and your client has no fincancial obligation. WHMCS always generates proformas so that your clients can freely decide if they want to pay to keep their services with you. Only when a client decides to pay a proforma the system transforms it into a commercial invoice.

Example. A client visits your website and place an order to register a domain for 10 EUR. He then registers on your client area and places the order but when it's time to pay the proforma for some reasons he changes his mind and leave the order unpaid. That said, for your company this is not a problem and you have no billing obligations since here we're not talking about a commercial invoice. A proforma basically is waste paper. You can delete and forget about it. Only when a client pays a proforma WHMCS generates the real invoice that you must save and send to your accountant.

- See more at: http://docs.katamaze.com/article/general-settings-2.html#proformas
Proforma vs Invoices

In WHMCS there's a clear distinction between proformas and invoices. We're going to explain the differences in case you don't know what is a proforma. An invoice, also known as commercial invoice, is a real invoice and an official document with a sequential number. A proforma, even if in WHMCS it looks like an invoice (they use the same style), it is not a real invoice. Nothing has been billed yet and your client has no fincancial obligation. WHMCS always generates proformas so that your clients can freely decide if they want to pay to keep their services with you. Only when a client decides to pay a proforma the system transforms it into a commercial invoice.

Example. A client visits your website and place an order to register a domain for 10 EUR. He then registers on your client area and places the order but when it's time to pay the proforma for some reasons he changes his mind and leave the order unpaid. That said, for your company this is not a problem and you have no billing obligations since here we're not talking about a commercial invoice. A proforma basically is waste paper. You can delete and forget about it. Only when a client pays a proforma WHMCS generates the real invoice that you must save and send to your accountant.

- See more at: http://docs.katamaze.com/article/general-settings-2.html#proformas
Proforma vs Invoices

In WHMCS there's a clear distinction between proformas and invoices. We're going to explain the differences in case you don't know what is a proforma. An invoice, also known as commercial invoice, is a real invoice and an official document with a sequential number. A proforma, even if in WHMCS it looks like an invoice (they use the same style), it is not a real invoice. Nothing has been billed yet and your client has no fincancial obligation. WHMCS always generates proformas so that your clients can freely decide if they want to pay to keep their services with you. Only when a client decides to pay a proforma the system transforms it into a commercial invoice.

Example. A client visits your website and place an order to register a domain for 10 EUR. He then registers on your client area and places the order but when it's time to pay the proforma for some reasons he changes his mind and leave the order unpaid. That said, for your company this is not a problem and you have no billing obligations since here we're not talking about a commercial invoice. A proforma basically is waste paper. You can delete and forget about it. Only when a client pays a proforma WHMCS generates the real invoice that you must save and send to your accountant.

- See more at: http://docs.katamaze.com/article/general-settings-2.html#proformas
 
Proformas vs Invoices

In WHMCS there's a clear distinction between proformas and invoices. We're going to explain the differences in case you don't know what is a proforma. An invoice, also known as commercial invoice, is a real invoice and an official document with a sequential number. A proforma, even if in WHMCS it looks like an invoice (they use the same style), it is not a real invoice. Nothing has been billed yet and your client has no fincancial obligation. WHMCS always generates proformas so that your clients can freely decide if they want to pay to keep their services with you. Only when a client decides to pay a proforma the system transforms it into a commercial invoice.

Example. A client visits your website and place an order to register a domain for 10 EUR. He then registers on your client area and places the order but when it's time to pay the proforma for some reasons he changes his mind and leave the order unpaid. That said, for your company this is not a problem and you have no billing obligations since here we're not talking about a commercial invoice. A proforma basically is waste paper. You can delete and forget about it. Only when a client pays a proforma WHMCS generates the real invoice that you must save and send to your accountant.

In addition to proformas and invoices, the module allows you to create credit notes also known as reverse invoices. A credit note or a reverse invoice is the right document to use when for some reasons you need to send money to your client (e.g. refunds, commissions etc.). Specifically talking about refunds, sadly WHMCS does not handle refunds with the opportune care. In fact according to WHMCS you simply have to change the status of an invoice from Paid to Refunded but in reality in many countries, especially European one, you're not allowed to play with invoices in this way. Modifying the status of an existing invoice is even considered a tax crime. Luckily the module allows you to handle refunds in the right way.

When you need to refund a Paid invoice, simply open it from the back-end of your WHMCS. Right below the following buttons (Attempt Capture, Mark Cancelled, Mark Unpaid etc.) you can find a new button automatically added by the module. The button is named Refund. As soon as you click on it, the module automatically generate a credit note based on the invoice that you're seeing. Let's suppose that you need to refund the following invoice:

-- Invoice #15  
-- Description  
Register example.com 10 EUR
Register example2.com 10 EUR
-- Totals  
Sub Total 20 EUR
Tax @ 20% 4 EUR
Total Due 24 EUR

When you click Refund, the module creates the related credit note that looks as follows.

-- Credit Note #16  
-- Description  
Register example.com -10 EUR
Register example2.com -10 EUR
-- Totals  
Sub Total -20 EUR
Tax @ 20% -4 EUR
Total Due -24 EUR

Notice that, in line with EU regulations, the credit note keeps all the old descriptions, shows negative amounts and uses a sequential progressive number. In addition to this, the module, in order to ease the indentification of the original invoice and its related credit note, adds a new button on both of them that you can use to quikcly jump from the invoice to the credit note and viceversa.

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