Credit note invoices you create on a listing sync to Xero from the same screen as your other invoices, so you don't need to re-create them in Xero by hand. Once the credit note is paid in Xero, you can bring the payment back into Rex to mark it as paid.
This article covers how to sync a credit note to Xero, how it appears in Xero, and how to mark it as paid in Rex.
What Do I Need Before I Start?
- Xero invoicing set up for your account. For more on this, see - Xero Invoicing: Two-Way Invoice Sync.
- A credit note invoice created on the listing. For the steps, see - Credit Notes & Refunds.
How Do I Sync a Credit Note to Xero?
- Go to Applications > Xero > Sync Invoices.
- In the export list, find the credit note. Its type shows as Credit Note.
- Tick the credit note. You can tick it along with any other invoices you want to sync at the same time.
- Click Sync with Xero in the top right.
- Check the confirmation. Credit notes are shown on their own line, separate from your other invoices, with the amount that will be processed into Xero.
- Confirm to sync.
❗ Please Note: This button used to be called Sync to Xero. It's now Sync with Xero because it sends invoices to Xero and brings payments back.
Why Does My Credit Note Arrive in Xero as a Bill?
A credit note is money your agency pays out to the vendor, so Rex sends it to the purchases side of Xero as a bill, the same as a referral bill. You then pay it as part of your normal payment run.
The amounts are negative in Rex and positive on the bill in Xero. The description on the bill shows that it's a credit note.
❗ Please Note: Every invoice and bill Rex sends to Xero arrives as Awaiting Approval. Approve it in Xero before paying it.
❗ Please Note: Xero replaces the reference on a bill with the invoice number, so any reference you entered in Rex won't appear. You can edit the reference in Xero if you need to.
How Do I Mark a Credit Note as Paid in Rex?
Once you've paid the bill in Xero, bring the payment back into Rex:
- Go to Applications > Xero > Sync Invoices.
- Find the payment in the Import Payments from Xero table below the export list.
- Tick the payment.
- Click Sync with Xero.
The credit note is marked as PAID in Rex and is removed from both lists.
What Happens to an Invoice With Charges and Credits Combined?
If you invoiced a credit note together with ordinary charges, Rex creates an ordinary invoice for the net amount. It syncs to Xero as a normal sales invoice, with the credit shown as a negative line, and payments work the same way as any other invoice.
If the credit corrects an earlier invoice, the original invoice number is included in the line description in both Rex and Xero.
❓ FAQs
Why isn't my credit note a credit note in Xero?
Xero's own credit notes are settled by receiving a refund, which is the opposite direction to a credit your agency pays out. Sending it as a bill means you can approve and pay it in your normal payment run.
Is the credit note applied against the original invoice in Xero?
No. The bill is a separate document and the original invoice isn't changed, even if it's already been paid.
I can't see my credit note in the export list. Why?
Check that the credit note has been invoiced on the listing. A credit note added to the VPA schedule but not yet invoiced won't appear in the list.
Why is my credit note sitting as Awaiting Approval in Xero?
Everything Rex sends to Xero arrives as Awaiting Approval, not just credit notes. Approve it in Xero, then pay it.
The reference I typed in Rex isn't on the bill. Where did it go?
Xero replaces the reference on a bill with the invoice number. Edit the reference in Xero if you need it.