Credit Note is a document given by the seller to their customer to denote the amount of money they owe to that particular customer.
A credit note is issued in the customer’s name in order to keep track of the debt until it’s paid off. The debt remains until it’s refunded or subtracted from the next invoice, which you send to your customer.
Example: Ron owns a stationery store. One of his customers has returned two of the purchased products due to defects in them. Now, Ron owes his customer the money for the products he returned. He will either directly return the money to his customer or deduct it in his future invoices. So he raises a credit note to track this down.
Create Credit Note
To learn about how to create a Credit Note click here.
Apply Credits | Closing Credit Note
There are three ways through which you can close a Credit Note:
There are Different Statuses for Credit Note. Following are the different statuses:
| Status | Description (Status) |
|---|---|
 |
Indicates Credit note is applied to invoice/invoices or refunded fully. i.e Credits remaining : 0 |
 |
Indicates Credit Note (amount) is not applied to any invoice/invoices or no credits (amount) are refunded. i.e Credits Used : 0 |
 |
Indicates either some (partial) credits (amount) of Credit Note are applied to invoice/invoices or refunded. |
 |
Indicates Credit Note is over-refunded than Credits Remaining amount (Over Draft – Negative Credits Remaining Amount). |