What is a Credit Note?

A credit note is a formal commercial document issued by a Seller to a Buyer to amend a previously issued invoice or to provide reimbursement. The monetary value of a credit note is typically equal to or less than that of the original invoice and may be applied either as a direct repayment to the Buyer or as an offset against other outstanding obligations.

How to create a Credit Note?

Creating a Credit Note from a Sent Invoice

Follow these steps to create a credit note

• If the Document Manager app is not visible in the sidebar, open All Apps and search for 'Document Manager' to access it.

• Use the search bar to find the invoice you wish to credit.

• Click the three dots beside the invoice to open the side menu.

• Select ‘Create credit note’. The credit note form will auto-fill with invoice details.

• Ensure the Invoice Number field correctly references the original invoice.

• For partial credit, delete or amend any line items not relevant. Click ‘Send’ in the bottom right corner to submit the credit note.

Creating a Credit Note Separately

• To issue a credit note not directly tied to a specific invoice:

• Click on the ‘Create’ app from the sidebar.

• Select create ‘Credit Note’.

• Fill in the following details:
• Recipient (search by company name or email; add manually if not found).
• Credit Note Number
• Issue Date
• Currency
• Invoice Number (must reference the original invoice)
• (Optional) Add any additional fields if needed.

• Complete the credit note line items:
• Item ID
• Description
• Quantity
• Unit
• Price per unit
• Tax

• Click Discard to cancel the document.

• Click Save as draft to finish later.

• Click Preview to review before sending.

• Click Send to submit the credit note.