ERPNext Accounting
What is Credit Note?
- Credit Note
- A Credit Note in ERPNext is a return document issued to a customer when goods are returned or an overcharge needs to be corrected, reducing the customer's outstanding balance.
Issuing a Credit Note
Go to Accounting → Sales Invoice → New and check "Is Return". Link the original Sales Invoice. ERPNext reverses the item lines and tax amounts. On submission, it credits the Debtor account and debits revenue, restoring stock if required.
Reconciling Credit Notes
Credit Notes appear as negative outstanding in the Accounts Receivable. Use Payment Entry (Payment Type: Receive) to set off the credit note against a future invoice, keeping the customer ledger clean.
Need help with Credit Note?
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
Related Terms
Sales Invoice
A Sales Invoice in ERPNext is the document sent to customers requesting payment,…
Sales Return
A Sales Return in ERPNext records goods returned by a customer, reverses the rev…
Accounts Receivable
Accounts Receivable in ERPNext tracks money owed to your business by customers, …
Payment Entry
A Payment Entry in ERPNext records money received from customers or paid to supp…
Implement ERPNext for Your Business
Expert ERPNext implementation, customisation, and support for Indian businesses.