Xero Integration - Raise Credit Note, Shortfall Invoice

Article author
Greg Pietras
  • Updated

What is the context?

Xero’s online accounting software connects small business owners with their numbers, their bank, and advisors anytime.

What is the purpose of the article?

This article will walk you through the actions you can take on an invoice in Meddbase and how Meddbase communicates with Xero. The following topics will be covered:

Click Xero Interface - What can you do with Xero? for a full list of the actions you can take on an invoice in Meddbase.

Click here for an article on generating invoice, marking as 'sent', making payment.

Click here for an article on refunding payment.

Raise Credit Note on Invoice in Meddbase

If you have marked an invoice as sent and made a payment, but later realised that the incorrect amount has been invoiced, or the entire invoice has been incorrectly invoiced, you will need to raise a Credit Note.

To raise a Credit Note:

  1. Open the invoice. 
  2. Click Actions.
  3. Click Raise Credit Note.
  4. Type in the Amount* (select Vat Exempt, Gross or Net accordingly).
  5. Select the relevant Type from the dropdown menu.
  6. Add Comments (optional).
  7. Under Billing Item To Credit N/A is selected by default which will credit the entire invoice. You must select a particular line to credit if the amount you are crediting is lower that the outstanding balance.
  8. Click Save.

Upon saving a credit note will see a pop-up warning informing you that once a credit note is saved it can not be deleted or modified later.

9. Click Save again.

In this example, the outstanding balance on the invoice is £40 and we are reducing it by £20 with a credit note.

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This Credit Note will now be visible in Xero on the relevant invoice.

Click the Credit Note link to view the details.

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Shortfall Invoice in Meddbase

You can Shortfall an outstanding balance on an invoice marked as sent. A shortfall is a type of a Credit Note.

To do this:

  1. Open the invoice. 
  2. Click Actions.
  3. Click Shortfall.
  4. Select the relevant option:
      • To Patient - if the debtor on the invoice is a company, you can shortfall the outstanding balance to the attending patient.
      • To Account - you can shortfall the outstanding balance to the selected account by searching the account and clicking the search result.

5. Confirm the shortfall.

Meddbase will raise a new invoice for the selected account (patient or company).

The invoice's status will be Not Sent and it will show the outstanding balance accordingly. You can mark the new invoice as sent to push it to Xero and take payment, as per usual.

The previous/original invoice balance will be 0.

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The shortfall credit note will now be visible in Xero on the original invoice and it will be split across all the billing items on the invoice.

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Review date

This article was last updated on 4th of July 2023 in the context of Meddbase version