Credit Notes - Functions

Once you create a credit note, you can either apply the amount as credits to the customer’s invoices or refund them.

Apply Credit Notes To Invoices

Let’s say you’ve created a credit note for a customer. Now, whenever you create a new invoice for the customer, or you already have outstanding invoices for them, you can apply the credits to those invoices. This way, the invoice’s amount will be reduced, and the customer would have to pay only the remaining amount.

To apply credits to an invoice:

• Go to Sales on the left sidebar.
• Click the Invoices dropdown on the module bar, and select Credit Notes.
• Select the credit note you want to apply it to invoices.
• In the details page, click Apply to Invoices.
• In the Apply Credits to Invoices pop-up, apply the credits to the respective invoices.
• Click Save.

The credits will be applied to the customer’s invoices. To view the credits:

• In the credit note’s Details page, click Credit Applied Notes.

The list of associated invoices will be displayed.

Record Refunds

If you don’t want to apply to the customer’s invoices, or if the customer themselves requests the excess amount back, you can issue a refund to them. To do this:

• Go to Sales on the left sidebar.
• Click the Invoices dropdown on the module bar, and select Credit Notes.
• Select the credit note you want to issue as a refund.
• In the credit note’s Details page, click Refund.
• In the Refund page, fill in the required details:
• Amount: The excess amount will be auto-populated. If you wish to refund a different amount, you can update it. Ensure that it doesn’t exceed the balance.
• Refunded on: Choose the date on which you want to record the refund.
• Payment Mode: Choose how the payment was made.
• Reference#: Enter a unique reference number for internal use.
• From Account: Choose the account from which the amount was made.
• Description: Enter a short note on why you’re recording the refund.
• Click Save.

The refund will be recorded. To view it:

• In the credit note’s Details page, click Refund History.

The list of refunds will be displayed.