Credit Notes

Credit Notes

When to Issue

• Invoice amount correction
• Returned goods
• Service cancellation
• Discount applied after invoicing

Creating a Credit Note

1. Go to Invoices > Credit Notes
2. Click "New Credit Note"
3. Select original invoice
4. Add credit items
5. Specify reason
6. Save and send

GST Impact

Credit notes:

• Reduce output GST liability
• Must reference original invoice
• Appear in GSTR-1

Applying Credits

Credits can be:

• Adjusted against future invoices
• Refunded to client
• Carried forward