Understanding Credit/Debit Notes

What are Credit/ Debit Notes?

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

You can use Credit/ Debit Notes to record any changes made to Customers’ or Suppliers' invoices

1- How to create a credit/debit note:

Go to Operations - Credit/Debit notes - click on Add New Credit/Debit Note

You will see the following options to create a credit/debit note:

1- Credit/Debit:

Select whether this is a credit or debit entry.

2- Customer Group:

If you are creating an entry for a specific customer group only, by selecting this you will only see those customer names below.

3- Customer:

Select the customer you are trying to create the entry for.

4- Supplier Group:

If you are creating an entry for a specific supplier group, by selecting this you will only see those supplier names below.

5- Supplier:

Select the supplier you are trying to create the entry for.

6- Is credit/debit note non-taxable:

If you are creating a credit/debit note entry for items that are marked as non-taxable on your invoice, tick this checkbox.

7- Enter Amount:

This is automatically filled once you select an invoice. However if you are creating a credit/debit note entry without selecting an invoice you can enter the amount here directly.

8- Add Tax:

This is automatically set as per the information provided in your masters for the customer/supplier. If you have not set default taxes you can click on this and manually enter the tax values.

9- Attachments:

You can upload a file attachment here for your reference. This can be shared with the customer/supplier via email.