Credit notes and overpayments

There are two reasons a leaseholder might end up in credit: you issue a credit note to correct or reverse an earlier charge, or they overpay an invoice. PropLink handles both, and lets you apply either against future invoices or refund the leaseholder.

When to issue a credit note

Do not edit a sent invoice. Always issue a credit note instead so the audit trail keeps both records.

Create a credit note

1. Open the unit and click Financials → New credit note.
2. Enter the issue date.
3. Add line items mirroring the invoice you are crediting. The line items should code to the same ledger accounts as the original.
4. Optionally link to the original invoice for the audit trail.
5. Save as draft.

Like invoices, credit notes go through draft → pending approval → approved.

Approve and issue

1. Submit the credit note for approval.
2. An approver reviews and clicks Approve.
3. PropLink posts the credit to the ledger and adds it to the unit's available credit.

A credit note PDF is generated automatically. Send it to the leaseholder by clicking Send.

Apply credit to an invoice

A credit note sits as available credit on the unit until you apply it.

1. Open the open invoice you want to clear.
2. Click Apply credit.
3. PropLink lists every available credit note and overpayment for that unit.
4. Tick what you want to apply. PropLink shows the resulting balance.
5. Confirm.

If the credit covers the invoice in full, the invoice moves to Paid. If it only covers part, the invoice stays Approved with the remaining balance.

Refund a credit note

If the leaseholder wants their money back rather than offsetting it against future demands:

1. Open the credit note.
2. Click Refund.
3. Choose the bank account the refund will go from.
4. Confirm.

A refund posts a payment out of the bank account and clears the credit from the unit's account.

Overpayments

If a leaseholder pays more than their open invoices, the surplus is an overpayment. PropLink tracks overpayments separately to credit notes because they have a different origin (extra cash received vs an explicit credit issued by the agent).

Overpayments behave the same as credit notes for the purposes of applying or refunding. They appear in the same available credit list when you click Apply credit.

Available credit on a unit

The unit's summary page shows the total available credit alongside the outstanding balance. The credit is the sum of:

• Unapplied credit notes.
• Unallocated overpayments.

Available credit is automatically offered against any new debtor invoice raised on the unit, but never applied without confirmation.

Where credit notes appear in reports

• Unit statement. Shows credit notes as a credit line.
• Aged debtors. Subtracts available credit from the unit's gross balance to give a true net position.
• Service charge year-end pack. Lists any year-end credit notes issued as part of the reconciliation.
• General ledger. Each credit note posts a journal entry visible under the relevant ledger account.