How to create a credit note

There are two ways to create or enter a credit note:

1. From the sales orders page, enter a sales order like normally would. For credit notes, use a negative quantity.
   For example, the customer returns one item and then admin can issue a replacement item on the same order. Once a credit note order is created, and when ready, click "Ship out & invoice" to finalise it.
   
   
    
   • Step by step:
     • Go to Sales menu > Sales orders
     • Click "New order"
     • Choose the customer's name
     • Enter a reference, for example: Replacement product
     • Enter the product that has been returned (see below for an example)
     • Enter a qty of negative 1, that is -1, this is to return the product into stock
     • Save the item
     • Add the replacement item with a qty of 1, this is to reduce the stock quantity
     • When ready, click "Ship out & invoice" like normal to finalise it.
     • Any differences in the order value, for example:
       • If the total order value is a negative number, this means you can either leave this as a credit in the customer's account, or need to refund to the customer
       • If the total order value is a positive number, then the customer needs to pay the difference
       • If the total order value is zero, then it evens out, nothing to refund or to pay.
         
         
          
2. From the invoices & credits page, find and click to view an invoice. To credit:
   • Tick the line items to be credited
   • Click Actions
   • Choose Create sales return
   • Once it is created, and when ready, click "Ship out & invoice" to finalise it

When inventory/stock is not involved, use and enter non-diminishing product SKUs into the credit note.

For example: use a non-diminishing SKU like MISC, WARRANTY, RETURN, CREDIT or create a different SKU to reflect the type of credit.

After the credit note order is created, use the same "Ship out & invoice" process to finalise it and a credit note will be created.