Issue a credit note and refund a customer

A credit note lowers what a customer owes on an invoice: for goods they returned, a price you agreed to cut, or a mistake. If they had already paid, you refund the difference.

Steps

1. Open the invoice and click Credit note.

   

2. Choose what to credit. Every line of the invoice is listed. Enter the quantity you are crediting on each line (all of it, or part).

   

3. Give a reason. For example "Damaged bag returned". It is printed on the credit note.

4. Check the totals and click Save and issue. The right side shows the credit and what is left due on the invoice. Save as draft lets you check it first.

   

5. See where the credit went. It comes off what is still due on the invoice first. If the customer had already paid more than what is left, the difference shows as Left to refund.

   

6. Refund the customer. Pay the money back, then fill in Refund the customer: the amount, the date, how you paid and a reference.

   

7. Click Record refund. The refund is listed under Refunds and goes into your books.

   

Good to know

• Issuing a credit note takes the amount out of your sales and tax, and puts returned products back in stock.
• The credit note has its own number (CN-…), PDF and print, and is listed on the invoice.
• Nothing paid and the whole invoice is wrong? Void it instead.