Credit Note
Credit notes give you the option of issuing money from your agency ledger back to a tenancy, owner or contractor ledger. This action debits your agent ledger and credits the corresponding ledger.
Examples of where you may add a credit note are where you have overcharged a management fee to a landlord or overcharged commission to a contractor.
It's important to highlight that in some situations a credit not may not be necessary. If for example an error has been made in Street but there are no errors with physical payments, you may be able to instead undo the errors by voiding the relevant entries. For more information, see our voiding entries help article.
Adding a credit note
To get started, head to the relevant ledger and click add > credit note.
As mentioned, adding a credit note will credit the relevant ledger and debit the agent ledger. This means the money you are crediting to the tenancy/owner/contractor will come out of your agent ledger.
Note - Your agent ledger must have a positive balance in order to add a credit note. If you see an error 'nnot add a credit note for more than the agent ledger unallocated balance of £xx.xx' then you will need to wait until some funds have moved to the agency ledger, such as management fee funds from a different tenancy or a manual transfer from your business account to your client account.
When a credit note has been applied, the money will show in the ledger balance and can be user to either allocate to a charge or make payment to the person on that ledger.
Allocating a credit note
The process for allocating and paying a credit note is slightly different for owner compared to a tenant or contractor.
Owner credit note
Once the owner credit note has been added, head to Allocate Funds where you will see that credit note as 'money received' on that owner line. If there are no other outstanding charges, you can simply click 'allocate' to allocate the money to pay the owner.
If there are other outstanding charges on the owner ledger, you'll need to decide how to handle these. If you just want to pay the owner the full credit note regardless of the charges, you can untick each charge and allocate. From here, move on to the 'making payment' step below, using the payments to make section.
Contractor / tenancy credit notes
Contractor and tenancy ledger credit notes can be allocated to charges from the ledger itself, by selecting an outstanding charge and clicking 'allocate to charge'.
For contractors ledgers, credit notes that are not used to allocate to a charge will appear directly in Payments to Make so you can skip ahead to the 'making payment' step below.
For tenants, if you wish to refund them using the credit note money on their ledger, you should first issue a refund and then head to payments to make.
Making payment
To pay a client using funds from a credit note, head to Payments to Make and follow the usual accounting process.
Street is constantly being updated. This can mean that some of these articles become slightly out of date. If you spot something that looks a little bit different to your Street account, please let us know on the live chat so we can get it updated!