Credit notes and debit notes

Record sales returns and price reductions with a credit note, and returns to your suppliers with a debit note.

Credit note (sales return)

Use a credit note when a customer returns goods or you reduce what they owe, for example for a price correction.

1. Open the invoice and click Credit Note. You can also go to Sales › Credit Notes and click + New Credit Note.
2. Check the customer, the items and the quantities coming back or being credited.
3. Click Save.

The credit note reduces what the customer owes. Returned goods go back into stock. Settle the credit against another invoice, or record a refund.

Debit note (purchase return)

Use a debit note when you return goods to a supplier, or a supplier reduces their bill.

1. Go to Purchases › Debit Notes and click + New Debit Note.
2. Choose the supplier and the items going back.
3. Click Save.

The debit note reduces what you owe the supplier and takes the goods out of stock.