How to create a Credit against a Sales Invoice

Created by David Joyce

Overview

This guide explains how to credit a sales invoice, whether:

• The invoice was charged to the customer account, or

• Payment was already taken

It also explains partial credits, how the system tracks what has already been credited, and the different ways to create a credit.

Key Concepts

• Credits are created against the original sales invoice

• You can credit all or part of an invoice

• The system tracks credited quantities per line

• You can only credit the remaining uncredited quantity

Step 1 — Open the Sales Invoice

1. Go to Sales → Sales Invoices.

2. Locate the invoice you want to credit.

3. Click View on the invoice.

Step 2 — Create a Credit Note from the Invoice

From the invoice screen:

1. Click the red Credit button.

This opens the Credit Note screen.

Step 3 — Understand the Credit Screen

When the credit note opens:

• All invoice lines are automatically copied

• Quantities are shown as negative values

• Prices and VAT are preserved from the original invoice

This ensures accuracy and traceability.

Step 4 — Partial Credits (Most Common Scenario)

You are not required to credit the full invoice.

Example

• Original invoice line quantity: 12 units

• You only want to credit: 6 units

Steps:

1. Adjust the credit quantity to 6

2. Leave remaining items unchanged

3. Save the credit

The system will:

• Credit only the specified quantity

• Track that 6 units have been credited

Step 5 — Posting the Credit

When posting the credit, you can:

• Charge it back to the customer account, or

• Apply it against existing balances

The credit is then posted and linked to the original invoice.

Step 6 — Reviewing Credits Against an Invoice

1. Return to Sales → Sales Invoices.

2. View the original invoice.

You will now see:

• Credited quantities shown against invoice lines

• Clear linkage between the invoice and its credit(s)

Step 7 — Crediting an Invoice Multiple Times

If an invoice is only partially credited:

• You can credit it again later

• Only the remaining quantity will be available

Example

• Original quantity: 12

• First credit: 6

• Available for second credit: 6

The system prevents over-crediting.

Alternative Ways to Credit an Invoice

You can also create a credit by:

• Clicking View → Credit, or

• Clicking the three dots (⋮) beside the invoice and selecting Credit Invoice

Both methods behave the same way.

Important Distinction: Credit vs Standalone Credit Note

• Crediting an invoice: Directly linked, quantity-controlled, and tracked

• Standalone credit note: Created without referencing an invoice

Standalone credit notes are covered in a separate training guide.

Best Practices

• Always credit from the original invoice when possible

• Use partial credits to maintain clean audit trails

• Review credited quantities before issuing additional credits

• Avoid creating standalone credits unless necessary

Summary

To credit a sales invoice:

1. Go to Sales → Sales Invoices

2. View the invoice

3. Click Credit

4. Adjust quantities if partially crediting

5. Post the credit

The system ensures accurate tracking and prevents over-crediting.