←

Sales Credit Notes

Overview

Issue credit notes against an existing invoice — partial or full. The credit reduces the customer balance and posts the reversing journal entry without touching the original sale or its tax records.

Step-by-Step Guide

1

Find the Invoice

Invoices → All Invoices. Open the invoice the credit applies to.

2

Create Credit Note

Click Issue Credit Note. Pre-fills with the invoice line items.

3

Adjust Lines

Untick lines that aren't being credited; change quantities for partial credits. The credit total updates live.

4

Reason Code

Pick a reason (Pricing dispute / Damaged goods / Customer relations / Accounting correction). Appears on the customer-facing PDF.

5

Issue

Click Issue Credit. The customer's outstanding balance drops by the credit amount. Apply it to a future invoice or refund cash separately.

Tips & Best Practices

Tip: Credit notes are immutable once issued — to "undo" one, issue an invoice for the same amount with a clear note.
Tip: For VAT-registered businesses, credit notes carry the original tax rate forward automatically so your VAT return reconciles.