Sales & Invoicing 3 min read
How to Issue Credit Notes & Process Returns
Manage sales returns, price adjustments, and customer refunds legally without breaking journal continuity.
Before You Start (Prerequisites)
- An existing posted invoice
Step-by-Step Instructions
1
Navigate to Credit Notes
In your sidebar, click "Sales" > "Credit Notes".
2
Create Credit Note
Click "+ New Credit Note", select the customer, and link the original invoice reference.
3
Specify Credited Items
Select which items and tax amounts are being credited or returned.
4
Post Adjustment
Posting the credit note reduces Accounts Receivable and reverses the corresponding revenue and sales tax liability.