Credit Notes

Credit Notes are used to issue or receive credit against sales invoices or purchase invoices, either for the full amount or for part of the value of the goods or services listed on the invoice.

A credit note must be created before a refund can be sent or received.

Overview

Credit Notes can be created from either a sales invoice or a purchase invoice. After a credit note is created, you can edit it, allocate it against an invoice, refund it where needed, and print, email, clone, or delete it.

Create a Credit Note

You can create a credit note from the Sales Invoice or Purchase Invoice screen.

1. Open the Sales Invoice or Purchase Invoice from the sales or purchase ledger, Event screen, or customer or supplier Account screen.
2. In the actions section, click Create Credit Note.
3. The credit note is created. If the credit note is not for the full invoice value, follow the steps in Edit a Credit Note before completing the remaining steps below.
4. Return to the Account financial tab by clicking the Account name. If you need to make a refund, complete that process before continuing.
5. Allocate the remaining value of the credit note after any refunds have been completed by clicking Allocate Credit Note.
6. Select the Credit Note, the corresponding invoice, and the amount from the credit note that you want to allocate against that invoice.
7. Click Save Changes to complete the allocation.

Edit a Credit Note

You can edit a credit note to change the credited value of each item, as well as credit note details such as the tax point and comments.

1. Open the Credit Note from the sales or purchase ledger, or from the customer or supplier Account screen.
2. Edit the credit note details, such as the tax point or comments, by selecting the field you want to change.
3. Click Save Changes.
4. If you are only crediting part of the invoice, edit each item on the credit note by clicking the pencil icon and changing the amount to the value you want to credit before tax.
5. Click Save.

Delete a Credit Note

1. Open the Credit Note from the customer or supplier Account, or from the sales or purchase ledger.
2. Click Delete.

Clone a Credit Note

If you regularly create similar credit notes for the same customer or supplier, you can use the clone function. This creates a new credit note using the details and items from an existing credit note.

1. In the actions section, click Clone Credit Note.
2. Enter the new tax point and click Save Changes.

Print a Credit Note

To print a credit note relating to a sales invoice for posting to a customer or for your own records:

1. Open the credit note from the customer Account or sales ledger by selecting the credit note number.
2. In the top right, under View As, select the format you want to use. PDF Invoice is recommended.
3. Click Load.
4. The credit note opens in your PDF reader. Use the print function there, or press CTRL+P.

Email a Credit Note

When you email a credit note, it is attached as a PDF to a predefined email template. To configure this template, see the User Emails area in System Emails.

Before sending a credit note by email, ensure the Account includes at least one Contact with a valid email address.

1. In the actions section, click Email Invoice.
2. Select the email template you want to use.
3. Select the Contact you want to send the credit note to.
4. If needed, edit the template before sending or upload additional attachments.
5. Select Email Credit Note.

A record of the sent email is shown in the Sales Statement on the recipient’s Account screen.