Credit notes and returns to stock
Credit a customer for returned or mis-billed goods, put returned stock back on the shelf, and apply the credit to their invoices.
Where it is
- Sales → Invoices — Open the invoice → More → Issue Credit Note. Filter the list by type Credit Note.
Settings for this
- Integrations → Xero — Credit notes go to Xero as credit notes when connected.
Issue a credit note
- Open the issued invoice → More → Issue Credit Note.
- Choose Whole amount (type an amount, inc or ex GST — it starts at the invoice total) or Selected lines (tick the lines to credit).
- Add a Reason (returned goods, billing correction…) and issue it.
The credit note opens as its own document (numbered like an invoice, type Credit Note), linked to the original under Linked. If Xero or QuickBooks is connected it's sent there as a credit note.
You can also start one from + New Invoice with type Credit / Refund Note. Draft credit notes need Approve before the credit can be used.
Put returned goods back in stock
On the credit note, press Return to Stock. Set the quantity for each product line (up to what's left), pick the Return to warehouse if you have more than one (default: the one with the largest balance), then Return to stock. You can only return what the original invoice shipped and hasn't already come back.
Use the credit
- The Credit panel on the credit note shows Available credit.
- Apply Credit (or Apply to invoices) lists the customer's open invoices: enter how much goes on each and confirm. The invoice's balance drops and it shows under Payments & Credits.
- To give money back instead, use More → Record Refund on the original invoice.
- On the list a credit note reads Unapplied, Part applied or Applied — never "paid".
Not a customer return?
- Goods going back to your supplier: use Supplier returns.
- A dealer's return request from the dealer portal: see Dealer returns.