Credit notes
Credit a party for books that came back or for a bill that was too high, against the invoice that billed them.
/accounts/credit-notesA credit note reduces what a party owes: for books they sent back, or for a bill that was wrong. It goes against the invoice it names first, then against the party's oldest bills. Whatever is left becomes credit on the party's account.
There are two ways a credit note is raised:
- By hand, here. For books a party returned straight to the desk, or a price correction.
- From a warehouse return. When the warehouse takes back books from a school or trade party, the return waits on Returns to credit, and the desk prices and raises its credit notes from there.
Raise a credit note against an invoice
This is the usual way. Each title is credited at exactly the price and discount it was billed at.
Start from the invoice
Open the invoice on Sale invoices and select Credit note. The form opens against that invoice, in its firm, for its party.
Cut the books down to what came back
The Books card starts as the whole invoice. Take off the titles that did not come back, and bring each title's copies down to what did. You can't add a title that is not on the invoice, or credit more copies than the invoice billed. The discount and GST rate come from the invoice and can't be changed.
Add any freight refunded
Enter Freight refunded (₹) only if you are giving back carriage the invoice charged.
Give the reason
Under Why, write the Reason, for example "Unsold copies returned at the end of term" or "Wrong edition sent". It prints on the note.
Say whether the books came back
Leave The books came back — put them on the warehouse shelf ticked if the copies are physically back. Untick it for a price correction, where nothing came back.
Issue it
Select Issue credit note. The note opens with its number.
Raise a credit note without an invoice
Select New credit note on the Credit notes list, or Credit note on a party's page (Parties). Choose In the books of (the firm), the Date and the Party, then add the titles.
- Only the chosen firm's titles can go on its credit note. A title the other firm publishes goes on that firm's own note.
- Each title starts at its catalogue price. Type a rate to credit something else.
- Set Discount % and GST % for the whole note, and Freight refunded (₹) if any.
If you started from an invoice but the note should not go against it, select Not against this invoice. Changing the firm or the party also leaves the invoice behind.
Fields
| Field | What to enter | Required |
|---|---|---|
| In the books of | The firm whose sale is being credited | Yes |
| Date | The note's date | Yes |
| Party | The school or trade party being credited | Yes |
| Books | The titles and copies credited | At least one title |
| Discount %, GST % | For a note without an invoice. Against an invoice they come from the invoice | No |
| Freight refunded (₹) | Carriage given back | No |
| Reason | Why the books came back or the bill was reduced | Yes, at least three characters |
| The books came back | Ticked puts the copies back on the warehouse shelf | Ticked by default |
Where the credit goes
- A note against an invoice pays that invoice first, then the party's other bills in that firm, oldest first.
- A note without an invoice pays the party's oldest bills first.
- Whatever is left is credit on the party's account. The list shows it as "on account", and the note's page as On the party's account. The next invoice raised for that party in that firm takes it up by itself.
Credit notes from returns
A note raised from Returns to credit never puts books on the shelf, because the warehouse already did that when it took the return in. A school's or trade party's return names no invoice, so its note pays the party's oldest bills in that firm first. An older return recorded against an order goes against that order's invoice first. The note's page says the books were "Taken back by the warehouse" and links to the return. The list shows "Return" with the return's number under the reason.
Print or share a credit note
At the top of every note: PDF (headed "Credit Note"), Print, Email (the accounts desk only) and WhatsApp, as on a receipt. If the firm is set to email documents (Accounts → Setup → Firms), the note is emailed to the party when it is issued, if the party has an email address.
Cancel a credit note
A credit note is never edited or deleted. Open it, select Cancel credit note, write a Reason of at least three characters, and select Cancel credit note again.
- The note keeps its number and shows CANCELLED.
- Its entry in the books is reversed, and the bills it paid are owed again.
- If it put books back on the shelf, they come off the shelf again.
- If it was raised from a warehouse return, the books stay on the shelf and the return goes back to AWAITING CREDIT on Returns to credit, because the party is owed that credit again.
The register
The list opens on this financial year's standing notes. The total at the top is what was Credited in the period.
- Change the period, or switch between Standing, Cancelled and All credit notes.
- Search by note number or party.
| Column | What it shows |
|---|---|
| Date | The note's date |
| Note no. | Its number, with a tag for its firm |
| Party | Who was credited |
| Against | The invoice it was raised against, or "No invoice" |
| Reason | The reason, the return it came from, or "Nothing came back" for a price correction |
| Amount | The note's total |
| Applied | How much has gone against bills, and how much is still on account |
| Status | ISSUED or CANCELLED |
Good to know
- You can't raise a note against a cancelled invoice, an invoice of the other firm, or an invoice billed to another party.
- An invoice raised before the books were kept in SalesYatra has nothing to credit, so a note can't go against it.
- Credit notes for exempt books come off the exempt sales in GST returns.
- You can't date a note on or before the day the firm's books are closed after a GST filing (see Setup).
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