How to Issue a Credit Note

What this does

A credit note reduces the amount a customer owes you. It posts a debit to revenue and a credit to accounts receivable.

When to use it

Use this when a customer returns goods, when you've overcharged them, or to issue a goodwill discount.

Step by step

1. Go to Credit Notes in the Sales menu
2. Click New Credit Note
3. Select the customer
4. Add line items matching what you're crediting
5. Click Save