A credit note is a document issued by a seller to a buyer to notify them that credit is being applied to their account. You might notice these are referred to as credit memos, too. As a seller, you may issue a credit note when there’s a need to cancel all or part of an invoice for a variety of reasons, including:
Changes to an order after an invoice is issued
Goods returned or services rejected
Goods were damaged during shipping
Pricing mistakes on the original invoice
Follow the below steps to record credit notes.
1. Navigate to Sales Module -> Credit Notes -> +New
2. A new Credit Note window appears as per below:
Customer | Select Customer. Choose to create a new customer or existing customer. |
Billing Party | Key in Billing Party information. *(Optional) Note: The billing party information will be auto-filled if you have set the default billing address / Shipping address in the Contacts module. |
Shipping Party | Key in Shipping Party information. *(Optional) Note: The shipping party information will be auto-filled if you have set the default billing address / Shipping address in the Contacts module. |
Title | Add in a Title. *(Optional) |
No. | Enter the Credit Notes No. or the system will autogenerate it. Notes: Turn on Custom Numbering in the Company Settings > Number Formats to override the auto-numbering. |
Reference No. | Key in References No. if any. *(Optional) |
Date | Select a Credit Note Date. Note: The default date is the Current Day. |
Currency | Select Currency. Note: The default currency is the Malaysian Ringgit (MYR). |
Tag | Add a Tag for your transaction if any. *(Optional) |
3. Scroll down and Click on +Item to record the Credit Note transaction.
4. Select the Product.
You can create a new product by clicking +Add Product.
5. Select an appropriate Account.
You can create a new account by clicking +Add Account.
6. Update the Quantity, UOM, and review the Unit Price. The Amount column will be auto-calculated by the system based on the Quantity and Unit Price.
7. Add in Discount if any. *(% or RM)
8. Select Tax if any. *(Optional)
9. The Sub Total, Discount Given, Tax, and the Total will be auto-calculated and displayed by the system.
10. Scroll down to the Credit to Invoices section.
If you already have an existing invoice for the contact, it will be displayed under this column. You can select the relevant invoice or proceed without selecting if it is an outstanding credit.
11. The Apply Amount will automatically be filled for you. You can update the amount if needed.
Note: Apply amount cannot be more than the Credit note amount.
12. Key in notes under Remarks for your customer, Refer to Styling Guide. *(Optional)
Note: Remarks will be auto-filled if you have set default remarks under the Company setting.
13. Write a Description. *(Optional)
Note: The transaction description will be appearing on the Reports.
14. Attach Files to the transaction, either select the existing files or upload a new file.
15. Once the file is uploaded, tick Shared if the file needs to be shared with the contact.
16. Tick Send Email to send the document immediately upon saving.
17. Click Save to save the transaction in the system. You can save this transaction as Draft or Ready.
18. After clicking Save, review the Email To.
Note: Email To will be auto-filled if you have set the email address in Contacts.
19. Review/Update the email Subject.
20. Type a Personal Message for the Email.
21. Select the Form Design.
22. Once done, click on Save & Send.