Managing (sales) credit notes is essentially the same process as managing invoices, 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
Suppose you have issued an invoice and your customer returns part of the order back prior to payment. You need to issue a credit note for the returned items and also reduce the customer's balance in the system.
Add a credit note
From the main menu select "(...) More-> Credit notes -> Add".
As you can see, most of fields to fill-in are similar to the invoice adding process.
Note: 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 so it appears on the printable version of your credit note.
Important notes: Any products that will be selected from the list of items are thought to have been returned by the customer and will affect stock. In case you need to add products with no effect on your stock (discount or other price adjustment purposes), you could simply type.
Finish the process by selecting your desired template or include additional information in your note fields. Continue to "save".
Credit note payment
The moment the credit note is in "Issued" state, you will be able to associate with an invoice of the samwe client. Click "+Add payment-> Use credit note" as shown below.
Please note that the payment of a credit document always refers to the refund of the customer for an already paid off invoice. In order for the customer's balance to be right after a refund you have to reconcile the credit note's value with the value of the invoice.
Creating a credit note via an invoice
In order to save time, you can add a credit note through the sales document page to which the credit is referred.
Just click on (...) and then select Create credit note.
This will take you to the credit note's add page. The invoice is automatically set as a related document, and the amounts are pre-filled to save you time. If you wish to edit any of the fields, you can do it at this stage.
By saving as issued, the credit note will be issued and found in the list of credit notes, as long as in sales reports. At the same time, the credit note will be associated with the invoice.
For a previously unpaid invoice, this action will be enough to mark both documents as "paid"
For invoices that have been paid, the associated credit note will also need to be paid off to signify amounts refunded.