Credit Notes
A credit note reduces the amount a customer owes you — for example after a return, a price correction, a discount after the sale, or a problem with a service. It is reported in GST as a credit note against the original invoice.
Where to find it: Sale Invoice ▾ → Credit Note, or + Create → Credit Note (keyboard Alt + N)
Create a credit note
- Click + Add New on the Credit Note page.
- Choose the customer in M/S. and check the place of supply.
- In Credit Note Detail choose:
- Doc. Type: Post Supply, Deficiency in Service, Correction in Invoice or Other.
- Credit Note Type: Regular, Bill of Supply, SEZ or Export (with or without IGST).
- Supply Type: Outward or Inward.
- Check the C.N. No. and C.N. Date, then enter the original Invoice No. (with its prefix and postfix, for example INV-0042) and its date.
- Add the items and amounts being credited.
- Save or Save & Print.
Manage credit notes
The list shows Credit Note #, Date, Customer, Against Inv., Subtotal, GST, Total and Status. Use Search to filter by company, product, dates, credit note number, type, doc. type and more, Summary for totals and Trash to restore deleted notes.
Stock is not changed by a credit note. It adjusts the money only. If goods were physically returned, update the product’s stock. Correct a stock count
Credit notes are reported in the CDNR (registered customers) and CDNUR (unregistered customers) sections of GSTR-1 — give your accountant the credit note list when you file. For money you owe a supplier, use a Debit Note.