Sales Documents
Credit & debit notes
Raise a credit or debit note against an issued tax invoice; how they affect sales.
When to use each
- A credit note reduces what a customer owes (returns, overbilling, discounts). It reduces net sales.
- A debit note increases what a customer owes (undercharge, extra charges). It increases sales.
Prerequisite
You need a source tax invoice that is issued, partially paid, or paid. Notes can only be raised against tax invoices in those states.
Create a note
Open CN / DN → New, or use Create credit note / Create debit note on an eligible invoice.
- Choose Credit note or Debit note.
- Select the source tax invoice — search by number; only eligible invoices appear.
- Review the copied customer and line items shown from the source.
- Click Create credit note draft / Create debit note draft.
The note opens as a draft with the customer and lines pre-filled. Review, adjust, then Issue it like any document.
Register & reporting
Issued notes appear in the Credit & debit note register in Reports, with totals for credit notes, debit notes, and the net adjustment (debit notes − credit notes). See Sales & notes.