Lesson 8 of 9 · 3 min

Credit notes: goods back, or a price put right

An issued invoice stays as it went out. What's taken back off it is a credit note: its own document, with the invoice's number on it.

  1. Green Valley Mart sends back 2 tins of oil from NT-0042. Don't change the invoice: it went out, and it's in your books as it was. Write a credit note against it: Sales → Credit notes → New credit note, pick NT-0042, and its lines fill in for you to take back from.
  2. Issuing it posts the invoice the other way: the sale and its tax come back off, and Green Valley Mart owes Rs 6,372.00 less. The two tins come back onto the shelf at exactly what they left at on NT-0042, so their cost comes back out of cost of goods sold.
  3. Each stock line has a tick, Back on the shelf. Untick it for goods that came back unfit to sell, or when you're only putting a price right: no stock moves, and their cost stays where it went when they were sold.
  4. Its value comes off the invoice it credits first. Keep it as credit instead and Use on invoices later, or Refund it when they want their money back. Once it's used or refunded, it isn't voided until those come off, and the invoice it credits isn't voided while it's there.

Try it

Opens Ledger. You'll be asked to sign in first; new businesses get a free week, no card needed.

Open your credit notes

Quick check

One quick question. Pick an answer and Ledgy will tell you how you did.

1. A customer returns two tins from an invoice you've issued. What do you do?

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