Advances and credit notes are the loose ends of AP - cash out before goods, credits earned but never applied. Finnoto tracks both at source and adjusts them automatically at invoice time, so open balances trend to zero instead of to write-off.
Illustrative product behaviour - values shown are examples.
An advance nobody nets, a credit note nobody applies - the default outcome of loose ends is your money staying on their side of the table.
Paid against a PO that later changed, a contract that lapsed, a project that pivoted - unanchored advances become archaeology at audit time.
Issued in a portal, mailed once, booked never. Every unapplied credit note is a discount you negotiated and then donated back.
The moment to adjust is when the invoice arrives - miss it and you pay gross, then chase the balance for quarters.
Rules you set - e.g., proportional to PO delivery, or full-first - applied automatically when a matching invoice arrives; the deduction shows on the payment advice so vendors reconcile without calls.
Rate corrections, returns/RTV, shortage claims and negotiated settlements - Finnoto links each credit note to its originating event so audit sees why, not just how much.
They age on a visible ledger with escalation to procurement at your thresholds - refund requested, delivery pushed, or written off with an approval trail.
Advances and credits adjusted before payment - every time.
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