Creating a Credit Note

About Credit Notes

A credit note or credit memo is a commercial document issued by a seller to a buyer. Credit notes act as a source document for the sales return journal. In other words, the credit note is evidence of the reduction in sales. A credit memo, a contraction of the term “credit memorandum”, is evidence of a reduction in the amount that a buyer owes a seller under the terms of an earlier invoice.
It can also be a document from a bank to a depositor to indicate the depositor’s balance is being in an event other than a deposit, such as the collection by the bank of the depositor’s note receivable.

Issuing a new credit note

Select “Sales” from the navigation menu.
Select “Credit Notes“.
Click the button “Create Credit Note“.
Select the credit note “Method” using the drop-down menu from
- Send via Email: to send the credit note to the client’s email.
- Print (Offline): to print out the credit note to the client.
  - Note: The “Save” button at the bottom of the page will switch to “Save & Print” or “Save & Send Email” depending on the chosen delivery Method.
Select the “Client” to whom the credit note is issued using the drop-down menu.
- Click the button “New” to add a new client on-screen.
  - For more information on adding clients to the CRM database, please refer to the tutorial “Adding a new Client“.
Click the “Currency” abbreviation next to the button “New” to edit the credit note currency using the drop-down menu.
- For detailed steps, please refer to the tutorial “Changing an Invoice Currency“.
Select the desired “Price List” using the drop-down menu; set as “Use Default Pricing” by default.
- For more information on customizing price lists and in case this field is not visible, please refer to the tutorial “Price Lists in Invoices/Credit Notes“.
Input the credit note details
- Credit Note No.: an automatic unique credit note serial number.
  - For more information on customizing the sequence, please refer to the tutorial “Numbering Sequence“.
- Credit Note Date: the invoice creation date; set by default as the current date.
- Salesperson: Input the salesperson issuing the credit note if any; set by default as “None”.
  - For more information on adding employees, please refer to the tutorial “Adding an employee“.
- Issue Date: Input the invoice issue date.
- + : Click the “+” sign to add an extra Custom Field to the credit note.
  - Input the custom field label.
  - Input the field’s value.
Input the credit note item details
- Item: Input the credit note item or search products or services using the drop-down.
  - For more information on adding products or services, please refer to the tutorial “Adding a product or service“.
- Description: Add a description to the item or find it filled automatically in case the item has been previously registered.
- Unit Price: Input the item price per unit or find it filled automatically in case the item has been previously registered.
- Quantity: Input the quantity of the item purchased.
- Discount: Set a discount on the item(s) price in percentage (%) or amount ($) as needed.
  - Note that item Discounts need to be activated in Sales Settings, for more information please refer to the tutorial ” General Invoice/Estimates Settings“.
- Tax: Select the tax using the drop-down menu.
  - Click “Tax Settings” in the drop-down menu list to add a new tax using a pop-up window.
    - For more information on adding taxes, please refer to the tutorial “Adding Taxes“.
Input the credit note additional details as needed
- Discounts: Input a discount to be set on the total credit note amount using the drop-down menu to select from “Percentage” or “Amount“.
- Shipping Details: Fill in the shipping details in case there was a shipment of products.
  - For more information, please follow the detailed tutorial “Shipping Options“.
- Attach Documents: Upload a new document by browsing your device or drag and drop the file to attach it, or attach a previously uploaded document using the drop-down menu.
Click the “Preview” button; click the drop-down to “Web Preview” or “PDF Preview” the credit note before saving or sending.
- On preview, click the button “Edit” in case you wish to go back to make edits to the credit note.
Save the credit note as needed.
- Save as Draft: Save the credit note as a drafted version to be finalized later.
- Save & Don’t Email: Save the credit note without emailing it to the client.
- Save & Email: Save the credit note and send it to the client.
- Send with Revised Email: Select to make edits to the email template before sending it to the client.

Creating a Credit Note from an already-issued Invoice

Select “Sales” from the navigation menu.
Select “Manage Invoices“.
Click the invoice you wish to issue a credit note for.
Click the button “More Options“.
Click “Create Credit Note” from the drop-down menu.
- A credit note is automatically created with the same invoice details.
Edit as needed and save the credit note.

About Credit Notes

Issuing a new credit note

Creating a Credit Note from an already-issued Invoice

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