Credit Note

A credit note is a document sent by a seller to the customer, notifying that a credit has been made to their account against the goods returned by the buyer.

A credit note is issued for the value of goods returned by the customer, it may be less than or equal to total amount of the order.

1. How to make a credit note

The user can make a credit note against the sales invoice or they can directly make credit note from the sales invoice without reference.

  1. Go to: Accounts > Sales Invoice > New > tick the Is Return checkbox
  2. Save and Submit.
  3. Make Payment.
  4. The other steps are similar to a Sales Invoice.

Sales Invoice Note: For credit note set the negative quantity while adding the item

2. Example

Customer Mr. Sagar Malhotra has purchased Nokia Lumia worth Rs 42,400 and at the time of delivery customer found that the piece was damaged. Now Sagar has returned the product and he got his money back. Credit note with payment entry in ERPNext for above example is as below

Sales Invoice

  1. Payment Entry
  2. Payments
  3. Debit Note