Credit/Debit Notes

This article will explain how to use Credit/Debit Notes. You can now apply Credit/ Debit notes to all suppliers and customers.

What are Credit/ Debit Notes?

A Credit Note is issued if there are any kind of changes made with reference to a decrease in the invoice charges. Similarly, a Debit Note is issued if there are changes made with reference to an increase in the invoice charges.

You can use Credit/ Debit Notes to record any changes made to customers' or suppliers' invoices.

This article will show you three ways to use Credit/Debit Notes:

1- How to create a credit/debit note
2- How to create credit/debit note for taxable amount
3- How to create credit/debit note for non-taxable amount

1- How to create a credit/debit note:

To access Credit/Debit Notes, go to Operations - Credit/ Debit Notes.



This section will display all the credits and the debits associated with all the customers and suppliers.



To create a Credit/Debit note, click on Add New Credit/Debit Note





You can select what type of note you would like to create.

Here you can select your customer or customer groups

This section lets you select your supplier or supplier group



You can enter the amount that would either be Credited or Debited.

You can enter your comments related to this Note in this section.

How to apply Credit/ Debit Notes to invoices

In case you want to make changes to the customer invoice, you would have to Operations > Billing > Select the customer invoice.



Here you have two options to either click on Apply Credit/Note or you can click on Edit and scroll down and click on Credit/ Debit Note.



You can apply Credit/Debit notes in a similar manner for your suppliers.

In case if you have an invoice which contains both taxable and non-taxable values, to avoid manual effort of tax adjustment you can create a credit/debit note for taxable that shows the correct tax amount automatically.



2- How to create a credit/debit note for a taxable amount:

Go to operations - credit/debit notes - click on ‘Add new credit/debit note’ - select whether credit or debit - select customer - select the invoice under invoices - enter the amount for taxable in the Amount column - Save



3- How to create credit/debit note for non-taxable amount

Go to operations - credit/debit notes - click on ‘Add new credit/debit note’ - select whether credit or debit - select customer - select ‘is credit/debit note non-taxable?’ - select the invoice under invoices - enter the amount for non-taxable in the Amount column - Save



Done!

Updated on: 14/06/2024