How do I create a credit note?

03 May 2021 KB00005




If a customer returns goods, or you have overcharged your customer on the invoice, you need to issue a credit note to the customer.

If you have also received a payment from the customer and want to return that back to the customer, you need to also issue a refund.


  1. New Credit Note
  2. Fill out your credit note:
    1. Credit Note Details
    2. Item Details
  3. Refund payment (optional)
  4. Notes, Terms & Conditions
  5. Credit note completed


1. New Credit Note

  1. On the top navigation bar, click on the + button.
  2. Select New Credit Note.



Each section of the credit note screen is explained below:

Create a new credit note screen


2. Fill out your credit note


a. Credit Note Details

Credit Note Details

  • To - Select the customer you want to issue the credit note to. 
  • Credit Note # - This is an incremental number that is auto generated by the system. If you need to change the numbering sequence or prefix, click on the credit note number.
  • Order # - If the original invoice was to fulfill a purchase order, enter the same purchase order number here.
  • Date - The date of issue of the credit note.


b. Item Details

Credit Note Items

  • Description - Select the item to return.
  • Qty - Enter the quantity of the item being returned. If this is a service and you bill per hour, enter the number of hours here.
  • Unit Price - This is the individual item price. If you provide a service, this is the rate you charge.
  • Disc % - Optional. Enter the same discount percentage here as it was on your original invoice.
  • Disc Amt - Optional. Enter the same discount percentage here as it was on your original invoice 
  • Total - This is the line total.
  • Comments - Optional. Any details to describe the item. e.g. The specifications for a computer.
  • Add a Line - Click to add a new line to the credit note.


3. Refund payment (optional)

If you have received a payment from the customer, there are 2 ways to handle it:

1. Do not refund the money.

In this case, do not enter any amount in this section.

i.e. The customer receives only a credit note.

In the future, the customer will be able to purchase your goods or services, and pay using his credits instead of money.

ie. When you create a new invoice for the customer, the system will let you know that this customer has credits and you can use that for payment.


2. Return the money back to the customer.

In this case you will enter the amount refunded in this section.

i.e. The customer receives both a credit note and a refund.

Fill out the refund details here:

Payment Refunded

      • Date Refunded - The date that the payment was refunded.
      • Reference # - Any number that refers to the refund e.g. a bank transfer number.
      • Payment Method - The method that was used for the refund. e.g. cash, bank transfer.
      • Amount Refunded - The amount you are returning to your customer. This can be a partial or the full payment amount.


4. Notes, Terms & Conditions

Notes, Terms & Conditions

  • Notes - Any note you want to give your customer. e.g. Thank you.
  • Terms & Conditions - Any terms or conditions you need to let your customer know.


5. Credit note completed

Credit Note Completed