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How to Create Customer Credit Notes and Process Refund Adjustments

Learn how to issue credit notes, correct invoices, and manage customer refunds professionally.

Step-by-Step Process​

Step 1: Navigate to Invoices​

Click on Quick Links then select invoices.

Step 1 - navigate to invoices

Step 2: Select Invoice​

Step 2 - navigate to invoices

Step 3: Select Add a Credit Note​

Step 3 - navigate to invoices

Step 4: Add Details​

Add the refund reason, and date, specify the journal then press create.

Step 4- navigate to invoices

Step 5: Confirm the Credit Note​

Step 5 - navigate to invoices

Step 6: Select Register Payment​

Step 6 - navigate to invoices

Step 7: Register the Payment​

Step 7 - navigate to invoices

Step 8: Confirm Credit Note Completion​

Step 8 - navigate to invoices

Notes & Tips​

  • Always double-check before creating a credit note: Verify invoice reference, amounts/quantities, tax codes, posting date, and whether it should be full or partial to avoid accounting errors and unnecessary reversals.

FAQ​

Q: What is a credit note? A credit note is a document issued by a seller to reduce or cancel a previously issued invoice — recording a refund, return, or price adjustment and updating the buyer’s outstanding balance and the seller’s sales records.

Q: Does a credit note affect the customer balance immediately? No only after the credit note is Approved/Posted; drafts do not change balances.