Microsoft Office Accounting Professional 2008

Creating a credit note

A credit note is a reverse invoice used either when a customer returns products or when a customer is given a credit on their balance, possibly if they are dissatisfied with their purchase (or to make them pay the remaining balance).

Sample Customer Credit Note

You should note the following:

• The postings of a credit note are reverse of an invoice. That also means that stock products will be taken back and added to stock if they appear on the customer credit note.
• A credit note can also be created directly from an invoice (by clicking Create credit note on the Actions menu of the invoice).
• If you want to credit the customer, but not take products back in stock, you should use a non-stock product or a nominal account.
• Credit notes are listed on the invoice list
• A credit note can be settled with (paid to) the customer in three ways:

• 1. By creating it from an invoice, thus reversing the invoice.
• 2. By issuing a refund (a payment to the customer).
• 3. By applying it to one or more existing invoices on the customer payment form.