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Procedure of Issuing Credit Note to Customers


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Hello all,


I would like to ask if anyone is facing this problem as me or could someone point out to me if I'm doing the wrong procedure.


I recently sold some items to a customer, got their payment and banked in their cheque, applied payment on the invoice.


2 days later, customer called up and wanted to return few items and requested for a refund.


I tried to credit a credit note with reference to the applied invoice, removed items that are not returned. Committed the credit note.


All seems fine, under Net Asset, it showed the correct amount deducted. For example, before the credit note was raised, I have in the net asset shown as $2000.00 and Checking account shown as $2300.00. The credit note amount is $20, it's shown as $1980.00 after creating the credit note.


However, the Checking Account is remained unchanged.


Shouldn't this $20 be deducted from Checking Account too?


Am I missing some important procedure?

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  • 3 months later...

Seems like no one is willing to share their experience.


Is there anyone that can enlighten me how to do a refund / credit for payment that has been paid/applied?



  1. Issued an invoice of $100
  2. Customer made payment
  3. Payment applied in EA
  4. Customer request for full refund


In Express Account, you cannot apply credit note to paid invoices.


Is there a proper procedure to do follow?


Thank you to anyone in advanced for helps

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  • 4 weeks later...



I have had similar problems. What you are actually wanting to do is refund the customer rather than just give them a credit note. The issue is that Express Accounts doesn't have a use credit note for refund feature which it really needs. One way around this problem would be to delete the customer's payment and then use the credit note to pay the invoice. A note could also be made on the credit note of when the original payment was made so that there was still a record.


I hope this is helpful.

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  • 1 year later...

hi guys - if you are still with the forum.

i also have a problem with credit notes...

i have a few invoices that i have credited (with credit notes) the customers have paid the full original amount against the original invoices and then taken the credit notes against later invoices.

i have taken the amounts left of the payments from those later invoices, leaving them part paid.

i now need to somehow apply the credit notes to the art paid invoices, which i cannot find a way to do.

is there a way to do it, or is journal(s) the only way? 

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Credit notes will change the customer account balance, if the invoice was already paid, the account used to allocate the invoice won't be changed. As a workaround you could enter a negative value on the invoice, using as Item: Credit, Description: the reason for the credit and date, and Unit Price: the amount that was paid by the user, so it goes back to $0.00

If there is a payment for the invoice, you should delete the payment from the payments list window. 

Best regards, 



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thanks Telephony

i've tried that and it works. i also put a minus credit note through for each one, to bring the credit note list back to zero too. 

this seems to have worked so far, in that the Unpaid Accounts Report, only shows invoices i know are outstanding.

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