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Credit Note

Q1. How do I open the Credit Note module?​

Steps:

  1. From the main menu, go to Finance.
  2. Click Credit Note.
  3. The Credit Note list/table opens, showing columns like Client, Client Company, Credit Note No., Invoice No(s), Settled Invoices, Amount, and Status.

Q2. What is a Credit Note used for?​

A Credit Note is an official document issued to reduce the amount receivable from a client. It’s used to:

  • Adjust overbilling
  • Process refunds or cancellations
  • Correct billing errors

It can be linked to one or more invoices to reduce the receivable amount.

Q3. How do I create a new credit note?​

Steps:

  1. Navigate to Finance → Credit Note.
  2. Click the “+” Add button at the top-right.
  3. In the Add Credit Note form:
    • Select the Date (calendar icon)
    • Choose the Company (your issuing company)
    • Enter Credit Note No. (use your numbering rule)
    • Select Currency (e.g., INR)
    • Select Client (payer/customer)
    • Add the Charge Type (e.g., Base Fare, Distance Fare)
    • Review totals: Subtotal, Total Deduction, Taxable Amount, Tax, and Total
  4. Click Save.

Q4. Which fields are mandatory?​

The mandatory fields for creating a credit note are:

  • Date
  • Company
  • Credit Note No.
  • Currency
  • Client
  • Charge Type
  • Unit Cost
  • No. of Units (at least one line item is required)

Without a valid line item, the note cannot be saved.

Q5. How do I add a line item (charge being credited)?​

Steps:

  1. In Charge Type, select or type the item (e.g., Distance Fare).
  2. Enter Unit Cost (price per unit).
  3. Enter No. of Units.
  4. The Amount auto-calculates (Unit Cost × Units).
  5. To add more lines, click the “+” icon in the Action column and repeat the process.

Q6. How do I use Group to organize line items?​

Steps:

  1. Click + Group (top-right of the item area).
  2. A new group block appears. Add lines inside this group (useful for separating services/taxes per section).
  3. Groups roll up their own subtotals and contribute to overall totals.

Q7. How can a discount be applied in a Credit Note?​

Steps:

  1. Click the + Discount button (right panel).
  2. Choose the type (flat or percent) and enter the value.
  3. The discount gets included in Total Deduction and reduces Taxable Amount accordingly.

Q8. How do I add Tax?​

Steps:

  1. In the Tax row (right panel), open the rate dropdown (e.g., 0%, 5%, 18%).
  2. If needed, click the search icon to select from preset tax rates.
  3. The system calculates Total Taxes on the Taxable Amount and updates the Total.

Q9. How are the totals calculated?​

Formulas:

  • Subtotal = Sum of all line item amounts
  • Total Deduction = Discounts + Other deductions
  • Taxable Amount = Subtotal - Total Deduction
  • Total Taxes = Taxable Amount × selected tax rate(s)
  • Total = Taxable Amount + Total Taxes

Q10. How do I save and return to the list?​

Steps:

  1. Click Save (bottom-right).
  2. You will return to Finance → Credit Note list.
  3. The new credit note will show with the Status = Unsettled until applied to invoices.

Q11. How do I edit an existing credit note?​

Steps:

  1. Open Finance → Credit Note.
  2. Find the row (use the search bar if needed).
  3. Click the Edit (✏️) icon in the Action column.
  4. Change the header fields, line items, tax/discount as needed.
  5. Click Save.

Q12. How do I link/apply the credit note to invoice(s)?​

Steps:

  1. Edit the credit note.
  2. Scroll to the Applied Invoices section (bottom).
  3. Click “+” to add an invoice.
  4. Select the invoice(s) to apply against (and amount if partial application is allowed).
  5. Click Save.

Q13. What does Status = Unsettled mean?​

“Unsettled” means the credit note value is not fully applied to invoices.
Once the amount is matched and balanced, the status changes to Settled, or the Due Amount becomes 0.

Q14. Can I print the credit note?​

Steps:

  1. Edit the credit note.
  2. Click Print (bottom action bar).
  3. A printable view/PDF opens based on your template.

Q15. How do I generate an E-Invoice for a credit note (IRN/Ack No.)?​

Steps:

  1. Edit the saved credit note.
  2. Click Create E-Invoice (bottom action bar).
  3. Wait for a success response from the e-invoicing gateway.
  4. On success, the IRN No. and Acknowledgement No. populate in the list.

Q16. Where do I see IRN No. & Acknowledgement No. later?​

Steps:

  1. Go to Finance → Credit Note list.
  2. Review the columns IRN No. and Acknowledgement No. for each row.
  3. Use the search bar to filter by Credit Note No. or Client if needed.

Q17. How do I cancel a credit note, and how is it different from delete?​

Steps:

  1. Edit the credit note.
  2. Click Cancel (bottom action bar) to mark it as canceled (remains for audit).
  3. Delete removes the record entirely (if allowed), use cautiously.

Q18. How do I delete a credit note?​

Steps:

  1. Open Finance → Credit Note.
  2. Click the Delete (🗑️) icon in the Action column for the row.
  3. Confirm deletion.

Q19. How do I download/export the list?​

Steps:

  1. On the Credit Note list, click the 3-dot menu (⋮) (top-right).
  2. Choose Download.
  3. Select format (Excel/PDF).
  4. File downloads to your device.

Q20. How do I search or filter credit notes?​

Steps:

  1. Use the Search bar (top-right) to type Client name, Credit Note No., or Invoice No.
  2. To filter by Date, set the date range.
  3. The table will show matching rows.

Q21. How do I customize columns on the list?​

Steps:

  1. On the bottom-right near pagination, click the gear (⚙️) icon.
  2. In Visible Fields / Hidden Fields, move columns as required.
  3. Click Save — the table refreshes with your layout.

Q22. How do I add a partial application of the credit note to an invoice (if allowed)?​

Steps:

  1. Edit the credit note → Applied Invoices → “+”.
  2. Select the invoice.
  3. Enter the Amount to Apply (≤ remaining credit).
  4. Click Save.

Q23. Can I group lines and still apply a single tax rate?​

Yes. You can create one or more Groups for organization and apply a single Tax rate to the overall Taxable Amount. Totals will include all groups.

Q24. How do I see who created or edited a credit note?​

Steps:

  1. Edit the credit note.
  2. Click Audit Log (bottom bar).
  3. Review timestamps, user names, and field changes.

Q25. How do I handle a multi-currency credit note?​

Steps:

  1. In Add/Edit Credit Note, set Currency to the client’s billing currency.
  2. Enter line items normally — taxes and totals calculate in that currency.
  3. For conversion reports, refer to Finance Reports.

Q26. What happens to the Due Amount?​

The Due Amount shows the remaining amount on the credit note after applying it to invoices.

  • If Due Amount = 0 → Fully settled.
  • If Due Amount > 0 → Partially settled or not used.

Q27. What is the primary use of this module?​

The Credit Note module helps you:

  • Record credit adjustments against clients
  • Track unsettled vs settled credit amounts
  • Link credit notes to invoices to reduce receivables
  • Generate compliant e-invoices (if enabled)

Q28. Can multiple credit notes be issued for the same client?​

Yes. You can create multiple credit notes for one client, each with its own Credit Note No., amount, and applied invoices.

Q29. What fields are shown for each credit note?​

The Credit Note list shows:

  • Client
  • Client Company
  • Credit Note No.
  • Invoice No(s)
  • Settled Invoices
  • Date
  • Amount
  • Status (Settled/Unsettled)
  • Due Amount
  • IRN No.
  • Acknowledgement No.

No. You can save a credit note without linking it, but it remains Unsettled until applied to one or more invoices.

Q31. What is the “IRN No.” field for?​

The IRN (Invoice Reference Number) is assigned when you generate an e-invoice. It ensures authenticity and GST compliance.

Q32. Can credit notes be partially settled?​

Yes. You can apply part of a credit note’s value to one invoice and keep the balance for another.

Q33. What is the 'Due Amount' field for?​

The Due Amount shows the balance remaining on a credit note after applying it to invoices.

  • If Due Amount = 0 → Fully settled.
  • If Due Amount > 0 → Partially settled or unused.

Q34. Can I export all credit notes in Excel?​

Steps:

  1. On the Credit Note list, click the 3-dot menu (⋮).
  2. Choose Download → Excel.
  3. File will download.

Q35. Is there an Audit Log of credit note changes?​

Steps:

  1. Edit the credit note.
  2. Click Audit Log (bottom bar).
  3. View who created/edited and when.

Q36. How can I filter credit notes as per status?​

Steps:

  1. On the list page, open Filters.
  2. Select a status (Created/Approved/Paid/Rejected/Unsettled).
  3. The table refreshes to show matching notes.

Q37. What is the customise feature in the table page under 3 dots?​

It allows you to show/hide columns in the Credit Note list — useful for personalizing your view (e.g., hide IRN No. if not needed).

Q38. What actions can I take from the gear (⚙️) icon or the three dots (⋮) menu?​

  • ⚙️ Gear icon → Rearrange or toggle columns visible in the table.
  • ⋮ Three dots → Download/export, Bulk actions (if enabled), or Customise Table.

Q39. How can I print the credit note?​

Steps:

  1. Edit the credit note.
  2. Click Print (bottom action bar).
  3. A print-friendly PDF opens.

Steps:

  1. Edit the credit note.
  2. Scroll to Applied Invoices.
  3. Click “+” to add an invoice.
  4. Select the invoice(s) to apply and click Save.