First of all, user will need to set credit note number by providing suffix, number and prefix. Click "Save". Another Popup Will Appear, Asking If You're Sure You Want to Save: Note that once saved, the Credit Note number, prefix and suffix cannot be changed.
Click "Yes" to Confirm, you will receive an alert message indicating that the setup is complete.
To create a new credit note, access sidebar menu, select sales>credit note>Create New credit note.
Select the customer from drop down. Once selected, the customer details will appear on the credit note.
All the invoices which are outstanding for this customer, will be available for selection in dropdown.
Select the relevant invoice number against which credit note is to be raised.
After selecting the invoice number, all the details of this invoice will be automated in credit note like: Items, Quantity, Price, Discount, Tax (tax rates along with name will be displayed in the summary), Amount and Currency.
Select credit Note date. It can not be a date earlier than the invoice date. If you select a date earlier than invoice date, you will get an alert message, ‘Credit Note date can not be earlier than invoice date’ and you will not be able to proceed further.
Then make necessary changes if required, click "Save". A success message will appear, ‘Credit Note created’.
Credit note will be saved in ‘Open’ status, with buttons ‘Edit, Apply to invoice, and Send’.
While creating a credit note, you will be directed to fill the Billed to dropdown first, then Invoice number, Credit note date, Item, Terms and conditions. After filling all the details, click 'Save'. Credit note will be saved in Open status.