Sales Credit Notes

Sales Credit Notes document credits issued to customers for returns, adjustments, or corrections to previously issued invoices.

Overview

Sales Credit Notes enable you to:

• Issue customer credits
• Process returns and refunds
• Correct billing errors
• Apply credits to invoices
• Track credit history
• Manage credit balances

Accessing Credit Notes

Navigate to Sales → Credit Notes from the main menu.

Credit Note List

Viewing Credit Notes

Sales Credit Notes

Filter: [All Credit Notes ▼] [Status ▼] [Date Range ▼]

┌────────────────────────────────────────────────────────────────┐
│ Credit Note  │ Customer      │ Date      │ Amount    │ Status  │
├────────────────────────────────────────────────────────────────┤
│ CN-2026-023 │ Acme Corp     │ Jan 22    │ $456.78   │ Open    │
│ CN-2026-019 │ TechStart Inc │ Jan 20    │ $1,234.56 │ Applied │
│ CN-2026-015 │ Global Supply │ Jan 18    │ $789.00   │ Applied │
│ CN-2026-012 │ DataFlow Ltd  │ Jan 15    │ $234.56   │ Refunded│
│ CN-2026-008 │ Enterprise Co │ Jan 10    │ $3,456.78 │ Applied │
└────────────────────────────────────────────────────────────────┘

Open Credits: $456.78
This Month: $6,171.68

[+ New Credit Note]

Creating Credit Notes

New Credit Note

1. Click New Credit Note
2. Select customer
3. Reference original invoice (optional)
4. Add credit items
5. Save credit note

Credit Note Form

New Credit Note

Customer: [Select Customer ▼]
Credit Note Date: [01/22/2026]

Reference Invoice (optional):
[Select Invoice ▼]

Customer Selected: Acme Corporation

Credit Reason:
[Select Reason ▼]
├─ Product Return
├─ Pricing Adjustment
├─ Billing Error
├─ Damaged Goods
├─ Service Credit
├─ Promotional Credit
└─ Other

Credit Items:
┌────────────────────────────────────────────────────────────────┐
│ Description          │ Qty │ Price    │ Tax     │ Total       │
├────────────────────────────────────────────────────────────────┤
│ Widget Pro (Return)  │ 5   │ $79.99   │ $33.99  │ $433.94     │
│ Restocking Fee       │ -   │ -$10.00  │ -       │ -$10.00     │
│ [+ Add Line]                                                   │
├────────────────────────────────────────────────────────────────┤
│ Subtotal:                               │         │ $389.95    │
│ Tax Credit:                             │         │ $33.13     │
│ Adjustment:                             │         │ -$10.00    │
│ Total Credit:                           │         │ $456.78    │
└────────────────────────────────────────────────────────────────┘

Notes:
[Return authorized per RMA-2026-045                   ]

[Cancel] [Save as Draft] [Issue Credit Note]

Credit Note Types

Credit Reasons

Reason	Description	Auto-Link
Product Return	Goods returned	RMA required
Pricing Adjustment	Price correction	Invoice ref
Billing Error	Incorrect charge	Invoice ref
Damaged Goods	Defective items	RMA required
Service Credit	Service adjustment	No
Promotional	Goodwill credit	No
Warranty	Warranty claim	Claim ref

From Invoice

Create Credit Note from Invoice

Invoice: INV-2026-0001
Customer: Acme Corporation
Invoice Total: $4,950.00

Select Items to Credit:
┌────────────────────────────────────────────────────────────────┐
│ [x] │ Widget Pro       │ 25  │ $79.99  │ $1,999.75           │
│ [ ] │ Gadget Plus      │ 10  │ $129.99 │ $1,299.90           │
│ [ ] │ Cable Kit        │ 50  │ $24.99  │ $1,249.50           │
└────────────────────────────────────────────────────────────────┘

Credit Quantity:
├─ Widget Pro: [5] of 25 (original)
│  Credit Amount: $399.95

Reason: [Product Return ▼]

Include:
[x] Proportional tax credit
[ ] Include shipping credit

[Calculate Credit] [Continue]

From Return (RMA)

Create Credit Note from Return

RMA: RMA-2026-045
Customer: Acme Corporation
Return Status: Received

Return Items:
┌────────────────────────────────────────────────────────────────┐
│ Product          │ Qty Returned │ Original Price │ Credit     │
├────────────────────────────────────────────────────────────────┤
│ Widget Pro       │ 5            │ $79.99         │ $399.95    │
│ Gadget Plus      │ 1            │ $129.99        │ $129.99    │
├────────────────────────────────────────────────────────────────┤
│ Items Subtotal:                                  │ $529.94    │
│ Tax Credit (8.5%):                               │ $45.04     │
│ Less: Restocking Fee (5%):                       │ -$26.50    │
│ Less: Return Shipping:                           │ -$15.00    │
├────────────────────────────────────────────────────────────────┤
│ Total Credit:                                    │ $533.48    │
└────────────────────────────────────────────────────────────────┘

[Create Credit Note]

Credit Note Details

Viewing Credit Note

Credit Note: CN-2026-023

Credit Note Information:
├─ Credit Note Number: CN-2026-023
├─ Date: January 22, 2026
├─ Customer: Acme Corporation
├─ Status: Open (Unapplied)
├─ Original Invoice: INV-2026-0001
└─ Related RMA: RMA-2026-045

Credit Details:
┌────────────────────────────────────────────────────────────────┐
│ Description          │ Qty │ Price    │ Tax     │ Total       │
├────────────────────────────────────────────────────────────────┤
│ Widget Pro (Return)  │ 5   │ $79.99   │ $33.99  │ $433.94     │
│ Restocking Fee       │ 1   │ -$10.00  │ -       │ -$10.00     │
│ Return Processing    │ 1   │ $32.84   │ -       │ $32.84      │
├────────────────────────────────────────────────────────────────┤
│ Total Credit:                                    │ $456.78    │
└────────────────────────────────────────────────────────────────┘

Reason: Product Return
Notes: Return authorized per RMA-2026-045

[Apply to Invoice] [Issue Refund] [Print] [Email]

Applying Credits

Apply to Invoice

Apply Credit Note

Credit Note: CN-2026-023
Available Credit: $456.78

Outstanding Invoices:
┌────────────────────────────────────────────────────────────────┐
│ Invoice       │ Date      │ Outstanding │ Apply               │
├────────────────────────────────────────────────────────────────┤
│ INV-2026-0002│ Jan 7     │ $4,950.00   │ $[456.78]           │
│ INV-2026-0003│ Jan 7     │ $3,406.70   │ $[     ]            │
│ INV-2025-0013│ Dec 15    │ $6,429.98   │ $[     ]            │
└────────────────────────────────────────────────────────────────┘

Total to Apply: $456.78
Remaining Credit: $0.00

[Cancel] [Apply Credit]

Application Confirmation

Credit Application Confirmed

Credit Note: CN-2026-023
Applied Amount: $456.78

Applied To:
├─ Invoice: INV-2026-0002
├─ Previous Balance: $4,950.00
├─ Credit Applied: -$456.78
└─ New Balance: $4,493.22

Credit Note Status: Fully Applied

[View Invoice] [Print Confirmation]

Issuing Refunds

Refund Options

Issue Refund

Credit Note: CN-2026-012
Credit Amount: $234.56

Refund Method:
○ Original payment method
○ Check
○ ACH Transfer
○ Wire Transfer

Original Payment: Credit Card ****1234

Refund Details:
├─ Refund Amount: $[234.56]
├─ Reference: [____________]
└─ Notes: [____________]

Processing:
○ Process now
○ Schedule for [__/__/____]

[Cancel] [Process Refund]

Refund Confirmation

Refund Processed

Credit Note: CN-2026-012
Refund Amount: $234.56

Refund Details:
├─ Method: Credit Card
├─ Card: Visa ****1234
├─ Reference: REF-2026-012
├─ Date: January 15, 2026
└─ Expected in 3-5 business days

Credit Note Status: Refunded

[View Details] [Print Confirmation]

Credit Note Document

Credit Note PDF

CREDIT NOTE

Company Name
123 Company Street
City, State ZIP
Phone: (555) 123-4567

═══════════════════════════════════════════════════

Credit Note Number: CN-2026-023
Credit Note Date: January 22, 2026
Original Invoice: INV-2026-0001

═══════════════════════════════════════════════════

CREDIT ISSUED TO

Acme Corporation
123 Business Park Drive
Chicago, IL 60601
Account #: CUST-001234

═══════════════════════════════════════════════════

CREDIT DETAILS

Description                  Qty    Price      Total
───────────────────────────────────────────────────
Widget Pro (Return)          5      $79.99     $399.95
Tax Credit                   -      -          $33.99
Restocking Fee              1      -$10.00    -$10.00
───────────────────────────────────────────────────
TOTAL CREDIT                                  $456.78

═══════════════════════════════════════════════════

Reason: Product Return
Reference: RMA-2026-045

This credit may be applied to outstanding invoices
or refunded upon request.

Credit Note Reports

Credit Summary Report

Credit Note Report

Date Range: January 1 - January 22, 2026

Summary by Reason:
┌────────────────────────────────────────────────────────────────┐
│ Reason             │ Count │ Amount      │ % of Total         │
├────────────────────────────────────────────────────────────────┤
│ Product Return     │ 12    │ $3,456.78   │ 56%                │
│ Pricing Adjustment │ 8     │ $1,234.56   │ 20%                │
│ Billing Error      │ 5     │ $789.00     │ 13%                │
│ Damaged Goods      │ 3     │ $456.78     │ 7%                 │
│ Service Credit     │ 2     │ $234.56     │ 4%                 │
├────────────────────────────────────────────────────────────────┤
│ Total              │ 30    │ $6,171.68   │ 100%               │
└────────────────────────────────────────────────────────────────┘

Status Breakdown:
├─ Applied: $5,714.90 (25 notes)
├─ Open: $456.78 (3 notes)
└─ Refunded: $234.56 (2 notes)

[Export Report]

Customer Credit Analysis

Customer Credit Analysis

Period: Last 12 Months

Top Credit Recipients:
┌────────────────────────────────────────────────────────────────┐
│ Customer           │ Credits │ Total Amount │ % of Sales      │
├────────────────────────────────────────────────────────────────┤
│ Acme Corporation   │ 12      │ $4,567.89    │ 2.3%            │
│ TechStart Inc      │ 8       │ $3,456.78    │ 3.1%            │
│ Global Supply      │ 6       │ $2,345.67    │ 1.8%            │
│ DataFlow Ltd       │ 5       │ $1,234.56    │ 2.5%            │
└────────────────────────────────────────────────────────────────┘

Credit Trends:
├─ Average Credit: $234.56
├─ Largest Credit: $1,234.56
├─ Credit Rate: 1.8% of sales
└─ Trend: Decreasing ↓

Best Practices

Creating Credits

• Document reason clearly
• Link to original invoice
• Include RMA reference
• Calculate accurately

Processing

• Apply credits promptly
• Communicate with customer
• Track open credits
• Review aging credits

Reconciliation

• Match to returns
• Verify calculations
• Review with finance
• Archive properly

Troubleshooting

Common Issues

Cannot create credit

• Verify customer account
• Check invoice status
• Review permissions
• Contact administrator

Credit won't apply

• Check credit status
• Verify invoice open
• Review amount vs balance
• Check for holds

Calculation incorrect

• Review line items
• Check tax settings
• Verify restocking fees
• Recalculate manually

Refund not processing

• Verify payment method
• Check processor status
• Review refund limits
• Contact support

Related Documentation

Learn about Returns for processing product returns.