When goods come back, you raise a note instead of a bill:
- A credit note is for a sales return — a customer returns something you sold.
- A debit note is for a purchase return — you send something back to a supplier.
Both work like the invoice editor, so the steps below will feel familiar. See Create an invoice for how the item lines and totals work.
Raise a credit note (sales return)
- Open Invoices from the sidebar.
- Click Credit note. The editor opens with the title Credit Note.
- Pick the customer.
- In Against invoice, type the number of the original bill the goods came back against. This is optional — you can leave it blank for a return with no bill on record.
- Add the returned items, quantities and rates, just like an invoice.
- Click Save (Ctrl+S).
A credit note carries no amount “due” — it reduces what the customer owes. In the invoices list it is marked with a Credit note badge and appears only under the All filter.
Raise a debit note (purchase return)
- Open the Debit Note editor.
- Pick the supplier (vendor).
- In Against purchase, type the reference of the original purchase, if you have it.
- Add the items you are returning.
- Click Save (Ctrl+S).
Notes
- The GST split (CGST + SGST, or IGST for another state) is worked out the same way as on an invoice, from the party’s state.
- Discounts are per line, prices can include or exclude GST, and totals are rounded to the nearest rupee — exactly as on a normal bill.