When to Use a Credit Note
Use a Credit Note when:
A customer returns items from an Invoice
An invoice was issued with incorrect quantities or prices
A refund needs to be issued
An adjustment must be made to the invoice total
Review all vendor purchase document types:
Document Type | Use Case | Add New Items | Pull Items from Existing Docs |
Purchase Order (PO) | Initiate purchase | ✅ | ❌ |
Purchase Receipt (PR) | Confirm receipt of goods | ✅ | From POs, Memos |
Memo | Receive memo stock from vendor | ✅ | ❌ |
Memo Return | Return memoed items | ❌ | From PMs |
Credit Note (CN) | Return purchased items | ❌ | From PRs |
Process payments for Credit Notes
Credit notes can be used to process financial adjustments, such as:
Applying the credit to another invoice
Issuing a refund
Adjusting the customer balance
The system updates the related financial records automatically.
Creating a Credit Note from an invoice
Open the Invoice you want to adjust.
Select Credit Note.
Enter the Date.
Add a Description, if needed.
Select Create Credit Note.
Review the credit note and adjust the items or quantities as needed.
ℹ️ Note: The credit note starts with the same line items as the original invoice. Review the items before submitting.
Edit a Credit Note
Open the Credit Note.
Update the required fields or line items.
Select Submit when the credit note is ready.
Void a Credit Note
If a Credit Note was created by mistake, it can be voided.
Open the Credit Note.
Select Void.
Confirm the action.
After the credit note is voided, it becomes inactive and the financial or inventory effects are reversed.
⚠️ Important: Only void a credit note when you are sure it should no longer be used. Voiding may affect financial records, inventory, and reporting.