Credit Notes, An Intro

Giving your customers the credit they deserve.

Mark Epchteine avatar
Written by Mark Epchteine
Updated over a week ago

TL;DR - An Introduction to Credit Notes

  1. Creating a Standalone Credit Note

  2. Creating a Credit Note From An Order

  3. Xero Integration for Credit Notes

Video Rundown

Creating a Credit Note

There are currently two ways to create a create note. One tied to a customer, but not to an order, or the second which ties it to a customer's specific order.

Standalone Credit Note

To create a generic credit note for a customer, head over to the Orders page, followed by the Credit Notes tab, and click Add New Credit Note

If you are just creating a credit note, and are not returning any stock to a warehouse, select the non-stock credit toggle, enter the credit note amount, and click Go To Overview.

From the overview page, enter any note associated with the Credit Note, and click Approve Credit Note (or save Draft to save it in Draft Status).

Returning Stock/Inventory to a Warehouse

If you want to create a credit note, and return stock to a warehouse, select Add Stock Credit when opening up the Credit Notes module.

Select which products are being returned, enter any Batch ID/expiry dates, and the pricing being credited for the product. Click Go To Overview when complete.

From the Overview screen, ensure everything looks correct, click the "Return Inventory to the Warehouse" toggle, and select which warehouse the inventory will be returned to. Click Approve Credit Note when you are finished.

Creating a Credit Note From an Order

To create a credit note from an order, open up the applicable order and click Manage Order --> Add New Credit Note.

From here, you can choose to apply a non stock credit as above, or click into Add Stock Credit to pull up the stock from the order to apply to the credit note, and return to the warehouse.

Pro Tip: When creating a credit note directly from an order, you can only credit a maximum amount equal to the order amount.

If crediting a non-stock credit greater than the amount, you will see a warning dialogue. Clicking on create a standalone credit note will unlink this credit note from the order, and allow you to enter an amount greater than the order value.

The same as a standalone credit note, at the confirmation page you are able to toggle on the Return inventory to the warehouse setting if you'd like to return the stock, select the warehouse, enter any applicable notes, and click Approve Credit Note ,and you're done!

Xero Integration for Credit Notes

Currently our integration with Xero works in two ways:

1) For Non-Stock Credit Notes, we will credit the account select below.

2) For Stock-Selected Credit Notes, we will credit to the sales account selected in the integration, or one assigned to a specific customer/product.

โ—We will be building on this integration to include proper debits/credits to the inventory and COGS accounts, but for the time being this will need to be done manually. โ—

If you are integrated with Xero, you will need to select the proper Xero account for non-stock credit. This can be done within the Xero integration tab in your Supplier Settings.

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