How To: Create A Credit Note For Rejected Or Incorrect HSP Claims And Managing Associated Payments

760Overview

This article explains how to create a credit note for rejected HSP claims or invoices created in error, and how to correctly manage associated payments.

There is no separate “Apply credit to invoice” function or system setting in Manage. Instead, credits and refunds are handled using the standard invoice and credit note workflow described below.

This process ensures correct financial reversal, payment tracking, and audit trail maintenance between invoices.

760When to Use This Process

Use this workflow when:

• An HSP claim has been rejected
• An invoice has been created in error
• A payment has already been recorded against the invoice
• A refund or payment transfer is required 760Step 1: Access the Original Invoice and Review Payments

1. Navigate to Invoices
2. Locate and open the relevant invoice
3. Select the Payment icon
4. Review all payments received from:

• Customer
• Third party payer

This confirms what needs to be reversed or refunded.

760Step 2: Create a Credit Note

If the invoice must be reversed:

1. On the original invoice, select Credit Note
2. Return items as appropriate using the correct option:

• N/A – No stock action required

  Used for services or non-stock items * Return to Supplier

  Items sent back to supplier * Return to Stock

  Items returned to inventory for reuse 3. Complete and save the credit note

This step reverses the invoice value appropriately.

760Step 3: Process Refund or Payment Adjustment

After the credit note is created:

1. Return to the original invoice
2. Select the Payment icon
3. Enter the refund details based on the credit note
4. Add a comment such as: “Payment transfer to new invoice” or as required.

This ensures the payment is properly reversed or reallocated.

760Step 4: Apply Payment to New Invoice

If a replacement invoice has been created:

1. Open the new invoice
2. Navigate to Invoices → Payments
3. Add the payment manually
4. In the comments field, reference the original invoice number for traceability

Example comment:

Payment transferred from Invoice #XXXX due to credit note reversal

760Important Notes

• There is no automated credit-to-invoice allocation function
• All adjustments are handled manually through invoice payments and credit notes
• This process is required to maintain a full audit trail
• Always ensure invoice references are included in comments for traceability

• This workflow applies to both:

• HSP claims

• Standard invoicing errors 760Summary

The correct handling of rejected or incorrect HSP claims involves:

1. Creating a credit note from the original invoice
2. Processing a refund or payment adjustment manually
3. Reapplying payment to a new invoice if required
4. Maintaining clear invoice references in comments

This ensures accurate financial records and a complete audit trail across all transactions.