Managing sales credit notes is essentially the same process as managing sales documents, with only slight alterations. You may issue sales credit notes in case:
- you wish to cancel an already issued sales document
- your clients return a sale or you want to apply a discount on invoiced goods
- you wish to give your client a refund
From the main menu select "Invoicing -> Manage credit notes (Sales) -> Add".
Unlike debit documents, here you can link related invoices/receipts, and they will appear on the official document. Through the "Related documents" field, select the document to which the credit applies.
The other difference is that the payment of a credit document always refers to the refund of the customer for an already paid off sales document. So when you add payments to credit invoices/receipts you create an expense instead of a revenue.
Caution: In order for the client's balance to be correct after a refund, you need to create the following cashflow records:
1) Αdd a cash receipt with the returned items' value from the related sales document display page
2) Add a cash payment to the credit note at hand from its display page.
Thus, even if the credit is applied for reversal or discount purposes, we assume that the customer paid you for the items on the sales document and by making a payment on the credit note, you gave them a refund.
- We would like to clarify that a sale or purchase document "on credit" does not have the same meaning as credit sales/purchase documents. The documents on credit are documents indicating that the payment will be made in the future and not upon delivery.
- Purchase credit notes are created in the same way as sales credit notes.