Creating a Credit Note referencing an Invoice

This article will go through each step to creating a Credit Note referencing an invoice number.

To start crediting an invoice, identify the invoice to find what items will be credited.

We will be doing a Credit for Lionel Marks and the reference will be his invoice IN1004. Here you can see the invoice and the Items he was charged for.

To start the Credit Note click on the Options button and select Credit.

Otherwise, go to Accounts > Credit notes and select New Credit Note. You will be presented with a blank Credit Note.

As we created our credit from an invoice the contact details are automatically populated.
If you need to, you can edit the credit note Reference.
To edit the Items automatically added to the credit note, click the Edit icon next to the item.

Here you can edit the item Description, Account, Quantity, Value, and Tax Rate. To remove the item completely from the Credit Note, select Options > Delete. When you're done, click the green tick.
As this credit note relates to a Job Card, we'll be asked to confirm the change. Select the checkbox and click Edit to confirm.
Once you have entered/adjusted all of the items that need to be credited, click the Save button to confirm the draft as a Credit Note.

Once the page refreshes you will be presented to the Credit Note page showing UNPAID.

Scroll down to the bottom of the page to view the Payment section. In this case, we have the option of making a payment or Offsetting the credit against other invoices owed by this customer.

To make a payment, make sure you have selected the correct:

Type of Payment
Account
Reference (optional)
Value

When everything is correct, press ADD.

Once the page refreshes at the top of the Credit Note it will be set to PAID (If fully paid 1st time). If the Credit Note was partially paid, the Credit Note will be indicated as PART PAID.

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