# Credit Notes

### **Module Guide: Credit Notes**

#### **Module Location**

#### Accounts Receivable > Credit Notes > Credit Notes

#### **Module Objective**

#### The **Credit Notes** module within Accounts Receivable is the opposite of Debit Notes. This module is used to create and manage Credit Note documents which function to **reduce the amount of a receivable or a bill** to a customer. The most common reason for issuing a Credit Note is for a **sales return**, but it can also be used to provide an additional discount or to correct an invoice that was **over-billed**.

### **1. Main View (Credit Note List)**

#### The main page of this module displays a list of all Credit Notes that have been issued.

![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/wypimage.png)

#### **View Explanation & Filters**

#### This page is the center for managing all existing Credit Notes.

- #### **Filters**: You can search for a specific Credit Note by its document number (**No.**) or a date range (**Date From / Date To**).
- #### **Credit Note List**: The table below will display all documents that match the filters, with columns such as **Document Number**, **Account Name** (Customer Name), **Total Amount**, **Status**, and **Approval**.

#### **Button Functions**

- #### **New**: The primary button to create a new Credit Note.
- #### **Print**: To print a selected Credit Note.
- #### **Void**: To cancel a Credit Note that has already been issued.

### **2. Steps to Create a Credit Note**

#### The following is the complete workflow for creating a new Credit Note.

#### **Step 1: Create a New Credit Note**

#### From the Main View, click the **New** button to open the **New Credit Notes** form. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/3UFimage.png)

#### **Step 2: Fill in Header Information**

#### Fill in all the general information at the top of the form:

- #### **Customer**: Select the customer who will be given the Credit Note from the dropdown.  
    ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/KQbimage.png)
- #### **Date**: Enter the document date; it will default to today's date (August 2, 2025). ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/vOEimage.png)
- #### **Document Type**: Select the appropriate document type, for example, **"Sales Return"** for a goods return. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/yGCimage.png)
- #### **Memo**: Provide a clear explanation for the reason the Credit Note is being issued.   
    ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/Wtwimage.png)

#### **Step 3: Detail the Credited Items**

#### In the detail table at the bottom, list the products or services whose value will be credited:

1. #### Click the **\[+\] Multiple Item \[-\]** button to add or remove rows. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/pX1image.png)
2. #### Enter the **Item Code**, **Qty** (Quantity), and **Item Price**. The system will calculate the subtotal in the **Amount** column.

#### **Step 4: Calculate Total and Save**

1. #### After all items have been entered, click the **Calculate** button to update the **Grand Total** value in the bottom-right section. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/3joimage.png)
2. #### Use the buttons in the bottom-left section to finish:
    
    
    - #### **Save**: To save the Credit Note as a draft. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/A6Himage.png)
    - #### **Confirm**: To finalize the Credit Note. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/m3Himage.png)
    - #### **Cancel**: To cancel the entry. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/sdrimage.png)

### **Tips & Important Notes**

- #### Credit Notes are used to **decrease** a customer's receivable amount, the opposite of Debit Notes.
- #### Ensure you select the correct **Document Type**, for example, "Sales Return", for accurate transaction classification.
- #### A confirmed Credit Note will reduce the customer's receivable balance and can be used to be **deducted from a subsequent invoice payment** or be **refunded**.