Create and manage sales credit notes

If you provide a customer with a credit note because they have returned faulty goods, you can create this from the original invoice. You can also create a stand-alone credit note and link it to any outstanding invoice at a later date. You can choose to print or email the credit note to the customer.

Before you can create the credit note you need to create your customer records. You can also create products and services in order to save time entering credit notes.

You can customize the appearance of your credit notes, add your company logo, and include your terms and conditions.

Sales credit notes for stock items

  • Every time you but or sell a stock item, a stock movement, in or out, is recorded.

  • Each stock movement has a type which records whether stock was added (in) or removed (out).

  • When you save a sales credit note that includes a stock item, we create negative goods out movement.

    The stock movement appears shows as quantity out, but as it is a negative your stock level is increased to show that the item has been returned.

  • If the item has not been returned by the customer has receive a credit, manually adjust your stock level after saving the credit note.

Create a credit note from a sales invoice

Use this when you are creating a credit for a single invoice either partially or in full. This credit note will be a direct copy of the sales invoice.

  1. From Sales, select Sales Invoices.
  2. Open the invoice you want to credit.
  3. On the right, select Add Credit Note. The credit note displays with the details of the original invoice. The credit note total cannot be more than the amount outstanding.
  4. If necessary, change the details.
  5. If necessary, enter any notes and Save.

If the credit note was for the full invoice amount, the invoice shows as Paid.

If the credit nore was for the partial invoice amount, the status shows a Part Paid.

Record a stand-alone sales credit note

Use this when you want to credit a customer for an amount that may cover multiple invoices. Once saved, match or allocate the credit note to the invoices you want to pay.

  1. From Sales, select Sales Credit Notes, and New Credit Note.
  2. Choose the relevant customer and the date, reference and address.

    If the customer does not have a main address on their record, enter it here.

    To send to a different address, edit the delivery address. Choose Custom to add a new address.

  3. Enter the details of the items being credited. Each item must have a description, ledger account, quantity and amount.
  4. If necessary, enter any notes or comments.
  5. To credit any shipping charges, select a shipping rate and then enter the amount in the Shipping field. The net amount and tax total display at the bottom of the credit note.

Send the credit note

Choose Save & email to email to the customer straight away.

Alternatively choose Save or Save & print or email the credit note later.

Track sales credit notes

If you emailed the credit note to you customer, use the document timeline to see when the credit note was saved, sent and viewed

  1. Open the relevant sales credit notes.
  2. On the right-hand side of the page, hover over a status on the document timeline to see
    • the date and time you created the credit note.
    • if the credit note has been printed - will show as manually submitted
    • when the email was sent (green) or failed to send (red).
    • when the email was opened