What is a credit note and how do I record one in Zoho ERP?

In Zoho ERP, a credit note is an accounting transaction recorded against a vendor to document a reduction in the amount payable when a bill has already been created or approved. A credit note is used in situations such as returned goods, overbilling, post-bill discounts, or billing corrections, and it ensures the original bill remains unchanged for audit and compliance purposes. When a credit note is recorded, it creates a credit value that can be applied to existing bills or retained for future bills from the same vendor, thereby accurately reflecting the adjusted liability in accounts payable while maintaining a clear audit trail.

To record a credit note in Zoho ERP:

• Go to Purchases on the left sidebar.
• Hover over Bills in the Modules bar and select Bills from the dropdown.
• Click the dropdown next to + New in the top right corner and select Create Credit Note.
• Fill in the required details and click Save.