This article covers how to create a Customer Credit Note, which is issued to your customer informing them of a reduction in the amount that your customer owes you.
A credit note is usually issued because of an error in a previously issued invoice. A Customer Credit Note usually states the reason it’s being issued for and references the invoice that it offsets.
Before you begin
Check with your company’s sales management process if you should cancel the invoice instead of creating a Customer Credit Note.
Navigating to Customer Credit Note page
1. Click on Accounting at the left panel (Red Box)
2. Click on Accounts Receivable at the top bar (Blue Box)
3. Click on Customer Credit Note (Green Box)
Creating Customer Credit Note
4. Click Create
5. Fill up the following fields (Red Box)
- Amount – Enter the amount with out tax
- Credit Account – Please do note if you have altered your chart of account please change this accordingly
- Debit Account – Please do note if you have altered your chart of account please change this accordingly
6. Click Save (Blue Box)
7. Click Confirm once done (Green Box)
After creating a credit note you may now apply the credit note to an invoice.