Issuing a Credit Note / Refund

Issuing a Credit Note / Refund

When a customer returns an item or needs a refund after an invoice has been created and paid, you issue a credit note. A credit note reverses all or part of an invoice.

When to Use a Credit Note

• Customer returns a defective product
• Customer was overcharged
• Item was damaged in shipping
• Customer cancels after payment

Step by Step

1. Open the original invoice (not the sales order).
2. Click Add Credit Note (or Reverse).
3. In the dialog:

• Reason — Enter a short description (e.g., "Defective scope returned")
• Reversal Date — The date of the return/refund
• Journal — Leave as default

4. Click Reverse.
5. A new credit note is created in draft. Review it, then click Confirm.

What Happens

• The credit note offsets the original invoice.
• If the customer already paid, you will need to issue a refund payment separately.
• Both the original invoice and credit note stay in the system for your records.

Partial Refunds

If only part of the order needs to be refunded (e.g., one item out of three), you can edit the credit note to include only the items being returned before confirming it.