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Credit Notes

A Credit Note (CN) is a financial adjustment that reduces the amount a customer owes you. Unlike a Sales Invoice Return, a credit note does not bring goods back into stock — it only adjusts money.

Issue a credit note when:

  • You overcharged the customer on an invoice.
  • You've agreed a post-sale discount or price correction.
  • You're settling the monetary side of a return that was handled separately.

Credit Note vs. Sales Invoice Return. If physical goods come back, use a Sales Invoice Return (it also updates inventory). If only the money changes, use a Credit Note.

Create a Credit Note​

  1. Go to Sales → Credit Notes and click Create.
  2. Select the customer and the invoice the credit applies to.
  3. Enter the credit note date.
  4. Add the lines or amount being credited, with the appropriate tax group.
  5. Add a note explaining the reason (recommended for audit).
  6. Review the total and Save.
📷 Image placeholder — Create Credit Note

The credit note form: customer and source-invoice selectors, the credit date, the line/amount grid with tax, the totals panel, and a reason note field. Highlight the Save button.

Field reference​

FieldDescription
CustomerThe customer being credited
Source invoiceThe Sales Invoice the credit relates to
Credit note dateThe date the credit is recognized
Lines / AmountWhat is being credited, with tax
NoteReason for the credit

What a credit note does​

  • Accounts: it reduces the customer's outstanding balance (their accounts receivable). The credit can be applied against the original invoice or left as an available credit on the customer's account.
  • No inventory movement: stock is unaffected — use a Sales Invoice Return if goods are physically returned.
  • History: each credit note keeps a transaction history so you can see how and when it was applied.
📷 Image placeholder — Credit Note detail & transaction history

The credit note detail screen showing the header (customer, date, amount, status) and the Transaction History panel listing where the credit has been applied. Include the Print action.

Print​

Open the credit note and choose Print to generate the credit note document for the customer.