Issue customer credit notes

Credit notes are required when a customer returns a purchased item, but you don't offer refunds. The credit note can be used by the customer to apply against a future purchase.

Refer to Record cancelled orders if you need to raise a credit note for a cancelled order.

Issue credit note for a paid invoice

  1. Go to Sales invoices (take me there in the app), then select the required invoice.

  2. From the Payments section, select Refund.

  3. Select Create a credit note.

  4. Select No money has changed hands.

  5. Apply the credit note against any unpaid or future invoices.

Issue credit notes for a part paid invoice

Creating a credit note for part of a paid invoice enables you to write off the unpaid amount. This is typically required if you negotiate a reduced payment or if a customer or if the customer is unable to pay the remaining balance.

  1. Go to Sales Invoices and select Create.

  2. Select the required Customer.

  3. Select Add Line Item and enter a Description that clearly indicates the reason for the credit, such as Credit for damaged bag (invoice 000127).

  4. If you are VAT registered, select the VAT Rate that was applied to the part paid invoice.

  5. Enter the Total amount you are writing off as a negative value. The net Rate and VAT amount will be reverse calculated.

  6. Select Save.

  7. Apply the credit note against any unpaid or future invoices.