Credit Notes

Issue credit notes to adjust previous sales transactions. Credit notes reduce your output VAT and must be properly recorded for compliance.

Accessing Credit Notes

Navigate to Credit Notes from the main navigation, or go to /credit-notes.

Dashboard Overview

Summary cards display:

• Total — All credit notes in the system
• Draft — Credit notes not yet issued
• Issued — Active credit notes
• Applied — Credit notes applied to VAT returns

Creating a Credit Note

1. Click Create Credit Note
2. Select the original sales transaction to credit
3. Enter the credit amount (up to the original transaction amount)
4. Select a reason:
   • Goods Returned
   • Pricing Error
   • Discount
   • Duplicate Invoice
   • Cancelled
   • Quantity Error
   • VAT Rate Error
   • Damaged Goods
   • Other
5. Click Create

The credit note is created in Draft status.

Credit Note Lifecycle

Status	Meaning	Actions Available
Draft	Created but not finalized	Issue, Void
Issued	Finalized and active	Apply to Return, Void, Download PDF
Applied	Applied to a VAT return	Download PDF
Voided	Cancelled	None

Applying to a VAT Return

Once a credit note is issued, it can be applied to a VAT return:

1. Find the issued credit note in the list
2. Click Apply to VAT Return
3. Select the target return period
4. The credit amount reduces your output VAT for that period

Filtering and Searching

• Status filter — Draft, Issued, Applied, Voided
• Search — Find by credit note number or customer name

Downloading PDFs

Click the Download PDF button on any issued or applied credit note to generate a PDF document for your records.

Next Steps

• Enter transactions manually
• Generate a VAT return
• Transaction overview