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Create a credit note (sales return)

Record goods returned by a customer, or a price reduction after the sale, with a credit note that reduces the sale and the customer's balance.

A credit note reduces an invoice you have already raised. Use it when a customer returns goods, or when you give a discount or price correction after billing.

Before you start

The customer must already have a sales invoice in Arthlekha. A customer credit note must be linked to that invoice. See Create a sales invoice.
Set up a credit note numbering series if you want your own prefix. See Invoice series. If you have none, Arthlekha creates one the first time you save.
For an Accounting / Service credit note, you need an income ledger. You can also create one from the line. See Chart of accounts.

Steps

Open Transactions > Credit Notes. You can also press Alt+F8 from anywhere.
Next to Issue To:, keep Customer selected.
In Customer \*, type a few letters and pick the customer. To add a new one, click the person icon at the end of the box.
Check CN No. and CN Date. The number fills in by itself.
In Invoice Mode, choose Item Invoice for returned goods, or Accounting / Service for a value-only credit.
In Orig. Sales Invoice, pick the invoice this credit note is against.
In Reason, type why you are issuing it, for example "Goods returned" or "Pricing error". The reason prints on the credit note.
Add the lines (see the next two sections).
Add any Charges, Notes or Round Off if needed.
Check the figures in Live Totals on the right.
Click Save Credit Note (or press Ctrl+S).

A green message shows "Credit Note ... saved!" with a Print button. The form clears for the next credit note.

Add item lines (Item Invoice)

Under Items, pick the product in the item box. Choose + Create Item to add a new product.
Enter the Quantity returned and check the Rate.
Enter a Discount amount if any, and check GST %.
Click Add for another line.

If the Barcodes module is on, you can scan the returned goods in Scan barcode (or type & press Enter). Each scan adds a line.

Saving an item credit note brings the returned quantity back into stock.

Add ledger lines (Accounting / Service)

Under Ledger Lines, pick the income ledger. Choose Create Ledger to add a new one.
Type a Description and the Amount.
Check GST %.
Click Add Line for another line.

An accounting credit note does not change stock.

Edit a credit note

Open Registers > CN Register and choose to edit the credit note. See Credit and debit note registers.
The page opens as EDIT CREDIT NOTE. The number cannot be changed.
Make your changes. All lines are replaced by what you see on screen when you save.
Click Update Credit Note. To leave without saving, click Cancel Edit.

While editing, you can click Print credit note to print it without saving again.

Duplicate a credit note

In CN Register, choose to duplicate a credit note.
The form opens with the same party and lines, today's date and a new number. The original invoice link is cleared, so pick it again.
Review and click Save Credit Note.

Print, e-invoice and e-way bill

Click Print on the saved message, or print later from the CN Register.
When GST registration is on, a GST DOCUMENTS card appears after saving. See e-invoice and e-way bill.

Fields

Field	What to enter
Issue To:	Customer for a sales return. Supplier is for a credit note you record against a supplier; it reduces purchase cost and the supplier's balance.
CN No.	Filled automatically from your series. Click the small icon at the end (Manual entry) to type your own number. Click it again (Switch to auto) to go back.
Series	Shown only when you have more than one active credit note series.
POS	Place of supply as a 2-digit state code. Same state gives CGST + SGST; another state gives IGST. Shown only when GST is on.
Tax Incl.	Tick if the rates you enter already include GST.
Export	Tick for an export credit note.
Orig. Sales Invoice	The invoice being reduced. Required for a customer credit note, even though the box says optional.
Dispatch-From & Ship-To	Only for the e-way bill, when goods move from or to an address other than the billing addresses. Leave blank otherwise.
Charges	Click Add Charge for freight or other charges. Choose GST charge or Other (no GST).
Round Off	A small plus or minus amount to round the total.

Common problems

Select a customer / Select a supplier — pick the party before saving.
Add at least one item / Add at least one ledger line — no line has a product or ledger chosen.
A credit note must reference the original tax invoice — choose the invoice in Orig. Sales Invoice.
Credit note total ... exceeds the remaining value of invoice ... — a credit note cannot be more than the invoice value minus earlier credit notes on it. Reduce the quantity or amount, or check the earlier credit notes.
Original invoice not found. — the chosen invoice was cancelled or deleted. Pick another.
Financial year ... is closed. — re-open that year first. See Financial years.
The invoice I need is missing from the list — click Refresh to reload customers, products, ledgers and invoices.

More in Sales

Create a sales invoiceMake a sales invoice for goods: pick the customer and items, add discount, GST and charges, then save, edit or duplicate it.Bill a service (Accounting / Service invoice)Bill fees, labour, rent or other services against an income ledger, with the right SAC and GST, without touching stock.View, print and share an invoiceOpen a saved sales invoice to check it, print 1 to 3 copies, save it as a PDF, send it on WhatsApp, edit it or duplicate it.Sales RegisterFind, filter and export your sales invoices, and view, edit, duplicate, print or cancel any of them.Make a counter sale (POS)Bill a walk-in customer in a few seconds with the keyboard, take cash, see the change and print a small receipt.Proforma invoice (quotation)Make a proforma invoice or quotation for a customer, print it, and later convert it into a real sales invoice.Make a delivery challanSend goods without an invoice under Rule 55, move stock between your own godowns, print the challan, and convert it to a sales invoice later.