Credit Notes

Overview

Credit notes reduce the amount owed to your company and may be issued because the customer returned all or part of a product on an invoice. Credit notes may also be issued when there a pricing dispute, a marketing allowance, or other reason in which the customer will not pay you the full amount of the original invoice.

Recording Credit Notes

To create a credit note:
  1. Go to Sales > Credit Notes.
  2. Click Create to create a new credit note.
  3. Select the invoice in the Tax Invoice field.
  4. The Date, Location, and Number are filled automatically. Change if necessary.
  5. Enter a Ref # (optional).
  6. Click the Shipping tab and change the Ship From: and Ship To: fields if necessary.
  7. Click the Accounting tab and change the A/R account if necessary.
  8. Click the Memo tab and enter a memo (optional).
  • External wil be printed on the credit note.
  • Internal is for internal use and will not be printed on customer documents.
9. Check the items/services being returned or discounted for and adjust the price or quantity if necessary.
10. If an item/service is not needed for the credit note, right-click it and click Delete to exclude from the credit note.
11. Click Save to save a draft or Post and Close to finish the credit note.
Alternatively, go to Sales > Tax invoice. Select the required tax invoice and click Generate > Credit Notes. In this case, many of the fields on the new credit note will be auto-filled from the tax invoice.