Credit Note / Sales Return

Credit Notes are issued by the seller to the buyer to record the cancellation or return of products or services related to one or more invoices. Using a credit note, you can cancel an existing invoice either fully or partially. This adjusts the buyer’s outstanding balance and reduces their payment obligation accordingly.

To create or use credit notes, it is essential and advisable to create the following:

• Customer Name
• Product/Service

These records are required because the credit notes must be linked to a customer and must include the products or services being offered.                  

The credit notes List can be accessed by navigating to Sales → Credit notes. This page displays all credit notes created in the system and allows users to quickly manage and track them.

By default, the list displays the latest credit notes, including both Draft and Approved credit notes. These quotations can also be viewed separately through their respective Draft and Approved tabs.

Users can easily locate credit notes in the list by using the following options:

• Search – Find credit notes quickly by entering relevant details such as credit notes number or customer name.
• Filter – Apply filters to narrow down credit notes based on specific criteria.
• Sort – Sort the credit notes list based on columns such as date, customer name, or credit notes number.

The credit notes list can be exported by selecting Options → Export. This allows users to download the credit notes data for reporting or analysis purposes.

Users can view credit notes that have been voided by selecting Options → View Voided. This section displays all credit notes that are marked as void.

If your organization is using the E-Billing feature, you will have the option to view Unsynced Credit Note.

Unsynced Credit Note are Credit notes that have been created in the system but have not been successfully synced or submitted to the tax authority’s e-billing system. This may happen due to reasons such as internet issues, system errors, or temporary server unavailability.

The system provides a dedicated section to easily identify and track these unsynced Credit notes.

• By clicking on View Unsynced, the system displays a list of all credit note that have not been successfully synced with the e-billing system.
• Users can select individual credit notes and manually initiate the resync process. 

This feature ensures that no credit notes are missed and helps maintain compliance with e-billing requirements.

When one or more credit notes are selected in the list, Bulk Action options become available. Users can perform the following actions on the selected credit notes:

• Void Selected – Mark the selected credit notes as void.
• Export Selected – Export only the selected credit notes.

Go to Sales →Credit notes.

1. Click Add New.
2. Select the Location at the top of the form if the Billing Location feature is enabled. The selected location will determine the billing location for the credit notes.
3. Select the Customer Name from the dropdown list.
4. Enter Invoice Reference no or select an existing sales invoice by clicking the search icon. If converted from sales invoice, the items and prices will auto-fill and the reference will be tracked.
5. Enter the Credit note number 
1. The number can be automatically generated if numbering is set to Auto in configuration.
2. It can also be entered manually if numbering is set to Manual.
6. Enter the credit note date. 

 a.  Credit note date : The Credit note Date represents the date on which the credit note is created and issued to the customer.

1. Select the Currency and enter the Conversion Rate if the credit note needs to be prepared in a currency different from the organization’s base currency.
2. Add the Product or Service lines.
1. Select the item from the list.
2. Enter the Quantity, Rate, Discount, and Tax details for each item.
3. Product Description : The Product Description field is used to enter detailed information about the product or service for which the credit note is being issued.
4. Warehouse :If your organization uses multiple warehouses, click the Warehouse field that appears (below the items table) and select the appropriate warehouse.      This ensures that all items listed in the credit note are recorded against the selected warehouse. 
5. Sales return Account:The Sales Return Account in a credit note is automatically determined based on the product selected in the invoice. Each product in the system is mapped to a predefined sales account, which ensures that when a credit note is created for returned goods, the corresponding revenue account is correctly credited.
3. Enter Terms and Conditions if required.
1. These terms will appear on the credit note document and inform the customer about the conditions related to the return, adjustment, or original sale.
4. Add Reporting Tags if required.
1. Reporting tags can be used to categorize or label credit notes for better tracking and reporting.
5. Add Notes or Custom Fields if additional information needs to be included.
6. Click Save to record the invoice .
7.  The credit notes can be saved as:

• Draft – Can be reviewed or modified later.
• Approved – Indicates that the credit notes are finalized and ready to be shared with the customer.

When the Add Refund option is selected in the Credit Note, the user can directly record the refund at the time of creating the credit note. This helps in simplifying the process by allowing immediate settlement of the amount payable back to the customer without requiring a separate refund entry. The recorded refund will reduce the outstanding liability and update the credit note status accordingly.

The user needs to select the Refund Account, which represents the account from which the refund is made, such as bank or cash. The Refund Mode defines how the refund is processed, for example cash, bank transfer, or cheque, helping in proper tracking and reporting. The Refund Reference Number is used to record any transaction reference such as cheque number or transaction ID for future verification. The Refund Amount field captures the amount refunded to the customer, which can be full or partial depending on the transaction.

• Refund Account: The account (cash or bank) from which the refund is made.
• Refund Mode: The method of refund such as cash, bank transfer, or cheque.
• Refund Reference : The reference number for the refund transaction (e.g., cheque number or transaction ID).
• Refund Amount: The amount refunded to the customer at the time of recording.

Once a credit note is created, several actions are available through the Options menu.

Edit

Allows you to modify the credit notes details such as products, pricing, taxes, or customer information.

Note : If the case is for E billing the credit notes cannot be edited due to compliance reasons.

Make Duplicate

Creates a copy of the selected sales credit notes. This is useful when preparing similar credit notes for different customers.

Void Credit notes

Marks the credit notes as invalid. Once the credit note is voided, it cannot be reversed.

Preview / PDF / Print

You can preview, print, or export the credit notes as a PDF.

Tigg provides default printing templates, which can also be customized from:
Configuration → Printing Templates.
The system provides an option to print the General Ledger (GL) transaction for each credit note separately. This feature allows users to view and generate the detailed accounting entries associated with a specific credit note, showing its impact on relevant accounts such as receivables, revenue, and taxes. 

Email Credit notes

The Email option allows you to send the credit notes directly to the customer from Tigg. When this option is selected, an email is generated using the predefined email template, which helps maintain a consistent and professional communication format.

The credit note is automatically attached to the email as a PDF document, allowing the customer to easily review or download the credit notes. You can also review or modify the email content before sending it to ensure that the message includes any additional information if required.

Tasks
Tasks can be created and linked to a specific credit note to track follow-ups or required actions related to that credit note. Each task may include details such as the task title, description, assigned user, due date, and status. This helps teams coordinate activities and ensure that credit note–related actions are completed on time

Documents

The Documents section allows users to upload and attach supporting files related to the credit note. These documents remain linked to the credit note and can be accessed whenever the credit note is opened, making it easier to store and reference relevant files such as specifications, approvals, or supporting agreements

Activity
The Activity section maintains a record of all actions related to the credit note. It includes an audit log of user activities, user comments or notes, and email logs generated from the credit note. This provides a clear history of updates, communications, and changes made to the credit note.

👉 Next Step

After issuing an Invoice, record Customer Payments to complete the sales cycle and keep accounts up to date.

➡️ Learn more: Customer Payments