How to create a credit note - foundational

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

1) From the invoices & credits page, find and click to view an invoice. To credit:

• Tick the line items to be returned or credited
• Click Actions
• Choose "Create sales return"
• If required, modify the sales return, delete the line items that are not needed
• When ready, click "Ship out & invoice" to finalise and create the credit note
  
   

2) Return and replacement on the same order

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.  Otherwise, if there is no replacement, then just have the returned item (with negative qty) in the order.


 

• 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
  • If a replacement item is required:
    • Add the replacement item with a qty of 1, this is to reduce the stock quantity
  • If required, add other items that relate to the order, for example:
    • Restocking fee
    • Labour
    • Or other products that the customer wants to purchase along with the replacement product
  • 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 make a bank 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

If inventory/stock is not involved in the return, use non-diminishing product SKUs in the return order.

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.