Introduction

In the daily management of a business, paying invoices on time is a necessity. But behind each regulation lies a more complex reality, especially when it is necessary to take into account holdings, sheds or credit notes. These corrective documents, which are often misunderstood or overlooked, can generate real administrative headaches if they are not handled well.

However, poor asset management can lead to wrong payments, of cash imbalances, or even accounting non-conformities. This is why it is essential to understand their usefulness, how they work, and to put in place effective, even automated, management practices.

In this article, we explain everything you need to know to manage your assets effectively and avoid mistakes that can penalize the financial health of your business.

Assets, credit notes: what exactly are we talking about?

One have, also called credit note, is a document issued by a supplier for correct a previous bill. In a sense, it is an “administrative refund” granted to a customer following:

• A billing error (too high amount, products not delivered, etc.),
• A return of goods,
• A commercial discount not applied,
• The partial or total cancellation of a service.

It is important to note that a credit note is not a voucher for a future order, but a Accounting correction deducting an invoiced amount. It must be linked to an existing invoice and contain the same legal information as a traditional invoice.

Example:

A company receives an invoice of €1,200 excluding VAT. The supplier then realizes that a service invoiced at €300 has not been provided. It emits a 300€ credit note, which reduces the amount due to €900 excluding VAT.

The risks of poor asset management

Many businesses, especially SMEs, continue to manage their invoices and credit notes manually (paper, Excel files, e-mails, etc.). This mode of operation has numerous limitations:

• Duplicate payment an uncorrected invoice,
• Forgetting a credit note during the final settlement,
• Confusion between several documents associated with the same transaction,
• Delay in accounting closings because of last-minute corrections,
• Non-compliance with tax obligations, with assets having to be recorded in the same way as invoices.

All of these can affect the financial health of the company, but also its supplier relationship, especially in the event of complaints or disputes.

Best practices for optimal management

Here are the essential steps to successfully manage assets in your business.

1. Centralize all documents

Use a document management system or accounting tool that allows you to store invoices and credit notes in the same place. This ensures a clear vision and prevents oversights.

2. Link each credit note to its original bill

It is crucial to Make the explicit link between a credit note and the invoice concerned. This can be done manually via a tracking table, or automatically via accounting software. The objective: to avoid treating the asset as an independent piece.

3. Adjust the amounts to be paid

Before any payment, check the net amount to be paid after applying the credit note. This seems obvious, but it is one of the most common mistakes, especially when invoices are numerous or paid in bulk.

4. Update timelines

Assets can change the Expected payment dates (for example if a credit note cancels an overdue invoice). It is therefore necessary to adapt your internal schedules to avoid paying too early or too late.

5. Integrate accounting assets

A credit note is a legal document that should appear in accounting as a separate entry. You have to make sure that he is well recorded in the correct journal, with a cross-reference to the original invoice.

Why automate asset management?

Automating the management of invoices and credit notes makes it possible to:

• Reduce manual errors,
• Save time, by eliminating repetitive entries and verifications,
• Strengthen compliance, by maintaining clear and traceable supporting documents,
• Streamlining cash flow, thanks to better monitoring of balances and payments.

Numerous financial management tools such as Bill Up allow today to automatically scan documents, extract key data, and classify them by supplier, date, or project. This simplifies the work of administrative teams while securing operations.

Assets, cash flow and financial management

Managing assets well is not only a question of compliance: it is also a lever for financial management.

• A company that controls its assets has a greater vision reliable real cash flow.
• It can anticipate its financing needs more precisely.
• It limits tensions with its partners, by ensuring a clear and transparent tracking payments.

This becomes all the more strategic in a tense economic context, where every euro counts, and where financial departments must rely on reliable data to make quick decisions.

FAQ: what to remember

→ Is a credit note mandatory?
Yes, as soon as there is an error or a return, a credit note must be issued to correct the initial invoice.

→ Can we reimburse a customer with a credit note?
Yes. The credit note can either be used to deduct an amount on a future bill, or can be refunded directly.

→ How long should assets be kept?
Like invoices, credit notes must be kept at least 10 years for accounting and tax purposes.

In summary

Credit notes and credit notes should never be considered as mere ancillary documents. They are at the heart of a healthy billing ecosystem, guaranteeing fair payments, compliant accounting, and optimized cash flow.

The key lies in a rigorous, structured and increasingly automated management, making it possible to make financial data reliable and to gain in responsiveness.

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