A Credit Note is a document provided by a vendor to a customer when products are returned post-purchase. This usually occurs due to issues like damaged or unsatisfactory goods. The credit note reflects the value of the returned items.
Create Credit Note
You can generate a credit note directly through the Credit Notes module by following these steps:
Navigate to Sales& Payment and select Credit Notes.
Click on the + Create Credit Note located at the top right of the page .
Fill in the customer and item information for which the credit note is being issued.
Choose to either Save as Draft or Save as Open.
Convert to Open
If your credit note is currently saved as a Draft, you can change its status to Open to ensure it becomes active and appears in your sales reports.
To mark a credit note as Open:
1. Navigate to Sales & Purchases and choose Credit Notes.
2. Find and select the credit note that is in Draft status and you wish to convert to Open.
3. Click the Approve button located at the top right of the page.
From Invoice
You can easily create a credit note directly from an invoice. Follow these steps:
1. Navigate to Sales & Purchases and select Invoices.
2. Choose the invoice you want to convert into a credit note.
3. Click on the three dots and then select Create Credit Note.
4. The New Invoice page will be automatically filled with the relevant details. You can save the invoice information from this page.
Apply Credits to Invoice
Suppose you have issued a credit note to a customer. This means you owe the customer the value indicated in the credit note. When you create a new invoice for the same customer, you can apply these credits directly to the invoice, thereby lowering its total value. If there are multiple invoices for the customer, you can distribute the credit note value across some or all of them.
Apply Credits
To apply a credit note to an invoice, follow these steps:
1. Navigate to Sales & Purchases and choose Credit Notes.
2. Select the credit note you wish to apply to an invoice.
3. Click on Apply to Invoice located at the top right of the page.
4. Enter the amount to credit for the invoice(s) of the customer.
5. Click Save.
Direct Application of Credits
You can directly apply the credits to an invoice. If a credit note and an invoice have been created for a customer, you can view the available credits in the invoice details page.
To apply the credits:
1. Navigate to the invoice details page.
2. Click on Apply Now to use the available credits directly on the invoice.
Delete Credit Note
You can delete a credit note that you have created for a customer by following these steps:
1. Navigate to Sales & Purchases and choose Credit Notes.
2. Find the credit note that you want to delete and click the three dots.
3. Click on Delete
