Option 1. Sales Credit Note only

Where an invoice has been raised incorrectly or it has been agreed with a customer to either return goods or allow a credit against an original sales invoice, then you will need to raise a (sales) credit note (note: the application does not allow you to simply delete an invoice as this would invalidate the audit trail, and where applicable, invalidate the stock records).

Click on Sales > Credits & Refunds > New Credit Note and this will take you to a list of sales invoices from which you can select the invoice against which the credit is to be raised.

Click the radio button next to the invoice you require and then click Select Invoice and this will bring up the original invoice details:

If you simply want to credit the invoice in full (effectively cancel the invoice) then you could simply click Save, or Save and Send to print and/ or send a copy of the credit note to the customer, but be aware that:

• you will need to enter a quantity in the Returns Quantity box to put the items back into stock, and
• if the Create Backorder? box remains ticked then a back order will be created for the credit quantity (not returns quantity) on the original Sales Order(note: applies only where the invoice was created from an order).

You can however create a partial credit by editing the credit quantities for each item, or excluding items from the credit note by ticking the Do not include? box at the end of each item line.

Option 2. Sales Credit Note and Customer Refund

Where a customer has previously paid an invoice, or where the invoice related to a cash sale, you may wish to both raise a credit note and process a repayment to the customer, and this can be done by:

Click on Sales > Credits & Refunds > New Refund and this will take you to a list of sales invoices from which you can select the invoice against which the credit is to be raised.

Click the radio button next to the invoice you require and then click Select Invoice and this will bring up the original invoice details where you should proceed as for a credit note above, but additionally specify the bank account from which the repayment is to be made.

Option 3. Customer Refund only

Where you simply wish to process a customer refund, perhaps to clear a previous credit note or possibly where a customer receipt has been received or processed twice in error, you should simply:

Click on Purchases > Payments > New Customer Refund

and complete:

• To – customer to which refund is being made
• From – bank account
• Amount of refund
• Reference – payment reference such as cheque number or ‘bacs’
• Accounting Date – date of refund
• Narrative – details explaining why the refund has been made
• Click Create.