Create and apply a credit note against a customer invoice

Steps

  1. Navigate to "Sales > Invoices > Credit Notes"
  2. Create credit note
  3. Navigate to "Sales > Invoices > Unpaid"
  4. Apply credit note against appropriate invoice

Guide Information

  • Difficulty: Beginner
  • Estimated Completion Time: 5 minutes

Step 1.

To create a credit note navigate to “Sales > Invoices > Credit Notes” and click ” New Credit Note”.

Step 2.

Fill out the credit note form in the same way you would complete a new invoice i.e. indicate which customer the credit note is for, the amounts and account codes.

Click “Confirm Credit Note”.

The credit note is now created but still needs to be applied to the appropriate invoice.

Step 3.

View the original invoice that needs to be credited by clicking on its invoice number in the sales invoice list reached via “Sales > Invoices > Unpaid”. If an unused credit note exists for the particular customer then an option to allocate a portion, or all of it, against the selected invoice will be enabled. This is found at the bottom of the screen.

Click “Apply” to allocate the credit note against the invoice.

Step 4.

If a credit note is applied successfully it will appear in “Payment history” for that invoice.

Credit Notes and the Bank Import Tool

When using the bank import tool as your primary means of bookkeeping you will need to follow the process above to apply a credit note against an invoice in the system. Then when you explain money against an invoice using the bank import tool the invoice will show the balance net of the credit note.