Credit Notes

Creating a Credit Note

Go to Transactions → Credit Notes, then click New.

Select the Customer. Only customers with existing Sales Invoices are relevant.
Select the Sales Invoice to reverse — the dropdown shows open invoices for that customer. Lines auto-fill from the invoice.
Adjust Return Qty for each line — enter only the quantity being returned. Leave 0 for lines not being returned.
Set the Date for the credit note.
Add a Narration explaining the reason for the credit (e.g., "Goods returned — damaged in transit").
Click Save. The credit reduces the customer's AR balance immediately.

Field	Status	Notes
Credit Note Number	Auto	Auto-generated from the CN voucher number series.
Date	Required	Date of the credit. Blocked if the period is locked.
Customer	Required	Must be selected first to reveal the invoice dropdown.
Sales Invoice	Required	The invoice being corrected. Lines auto-fill once selected.
Reference	Optional	Return authorization number or other reference.
Narration	Optional	Reason for the credit — appears on the printed CN.

Field	Status	Notes
Description	Read-only	Copied from the original invoice line.
Original Qty	Read-only	Quantity on the original invoice line.
Return Qty	Required	Quantity being returned. Must be ≤ original qty. Enter 0 to exclude the line.
Unit Price	Read-only	Locked to the original invoice price.
Tax	Read-only	Auto from original line. Tax reversal applies proportionally.

For inventory-tracked items, returned quantities are added back to stock automatically.