Credit notes, applied to the right bill.
A supplier credit is not a bill. ExpenseFlow recognises it when it arrives, finds the invoice it corrects, and lets you apply it, keep it on account or record the refund. Once approved, it posts to Xero or QuickBooks Online as a real credit, with the allocation made and the PDF attached.
The credit, the bill it corrects and the decision, side by side.
From the inbox to the ledger in four steps.
- 01 / Capture
Recognised as credit
Upload, email forward or Google Drive. A credit note is classified as a credit at intake and never counted as spend.
- 02 / Match
Linked to the invoice
The bill it corrects is suggested from the reference on the document, with the outstanding amount beside it.
- 03 / Decide
Apply, keep or refund
Split it across open bills from the same supplier, keep it on account, or, on Xero, record the cash the supplier sent back.
- 04 / Post
Synced after approval
Approval stays a separate step. Then the credit posts with its allocation and the source PDF attached.
Posted the way each ledger expects a supplier credit.
| What happens | Xero | QuickBooks Online |
|---|---|---|
| Posted as | Supplier credit note, authorised | Vendor credit |
| Applied to the bill | Credit note allocation | Zero-amount bill payment linking both |
| Source PDF | Attached, with the audit trail | Attached, with the audit trail |
| Sync noted | In History and Notes | In the attached audit trail |
| Cash refund | Payment on the credit note | Not synced yet: record the deposit in QuickBooks |
Questions
Does a credit note ever post as a bill?
No. Every sync path checks the document type, so a credit note can only post as a Xero credit note or a QuickBooks vendor credit.
What if the credit is bigger than the bill?
Each allocation is capped at what the bill still owes. The rest stays on account for the next invoice, or you record a refund.
Can I change the allocation after syncing?
Yes. Edit the amount and save: the allocation in your ledger is replaced, and the figures come back to ExpenseFlow.
Can I record a refund the supplier paid back?
On Xero, yes: the refund is recorded as a payment on the credit note. On QuickBooks Online, refunds are not synced yet, so record the deposit against the vendor credit in QuickBooks.
Does my client need to reconnect Xero or QuickBooks?
No. Credit notes use the permissions your connection already has.
Stop posting credit notes as negative bills.
Forward your next supplier credit and see where it lands.