How do I create a credit note?

Q: My client already paid: how do I give the money back?

Create the credit note with the Refund settlement, or Credit on a next invoice if they prefer a credit.

Q: Can I cancel an invoice instead of issuing a credit note?

Yes, if it has not received any payment yet. Cancel invoice issues the credit note for you: on a numbered invoice Krak Stack issues a credit note for the amount still due (reason "Invoice cancellation") then makes the invoice Canceled. Issue a credit note by hand when you only want to credit part of it.

A credit note cancels all or part of a sale invoice already issued. It is the right way to correct a sent invoice: an issued sale cannot be deleted.

How do I create a credit note?: Krak Stack screen (demo data) — Figure 1. Invoices with their totals and statuses; creating an invoice on a phone. Demo company, fictitious data.

How do I create a credit note?: Krak Stack screen (demo data) (phone) — Figure 1. Invoices with their totals and statuses; creating an invoice on a phone. Demo company, fictitious data.

Steps

Open Finance, click the sale invoice, then Create a credit note.
Section 1. What is credited: choose Invoice lines (tick the Lines to credit and adjust the quantity if needed) or Free amount (amount excl. VAT and description).
Section 2. Reason: pick the Reason (printed on the credit note) and add a note if needed.
Section 3. Settlement: on an unpaid invoice, the credit note is Deducted from the balance due. On a paid invoice, choose Refund or Credit on a next invoice.
Check the Preview (excl. VAT, VAT, incl. VAT and balance due after the credit note), then click Create the credit note as draft.
In the invoice's Credit notes section, issue the credit note with Download PDF or Send by email.

Good to know

A credit note can only be issued on a sale invoice that is Sent, Overdue or Paid, never on a proforma or a purchase invoice.
Available reasons: Container cancellation, Price or quantity error, Commercial gesture, Accepted damage dispute.
The credit note uses the VAT rate of the original invoice.
Credit notes cannot exceed the invoice amount in total. A deducted credit note cannot exceed the balance due.
A draft can be edited (Edit) or deleted (Delete). Once sent, it can no longer be edited.
The credit note receives its number (CN prefix) when it is sent. View PDF does not send it.
A deducted credit note is settled as soon as it is sent. If it clears the balance due, the invoice becomes Paid with the origin "Settled by credit note".
A refund or credit note stays Awaiting settlement until the refund or credit is carried out.
The invoice shows a credit note badge in the Finance list once a credit note is issued.

Frequently asked questions

Why is the Create a credit note button missing?

The invoice is a draft, canceled, a purchase or a proforma, or your role does not allow managing credit notes.

Can I credit part of a line?

Yes: for a line with several units, enter the quantity to credit. You can also enter a free amount.

My client already paid: how do I give the money back?

Create the credit note with the Refund settlement, or Credit on a next invoice if they prefer a credit.

Can I cancel an invoice instead of issuing a credit note?

Yes, if it has not received any payment yet. Cancel invoice issues the credit note for you: on a numbered invoice Krak Stack issues a credit note for the amount still due (reason "Invoice cancellation") then makes the invoice Canceled. Issue a credit note by hand when you only want to credit part of it.

What happens to a credit if I later cancel the invoice payment?

A credit becomes a deduction of that invoice. A credit note already refunded prevents canceling the payment.

Is the credit note sent to the client automatically?

No. It stays a draft until you download it or email it.