Fiscalizing a Credit Note in ERPNext

A Credit Note is used to adjust or reverse an existing Sales Invoice when a customer returns goods. This process correctly updates the customer's outstanding amount and ensures the transaction is recorded as a return.

1. Initiating the Credit Note from the Original Invoice

The best and most accurate way to create a Credit Note is directly from the Original Invoice:

• Locate the Original Sales Invoice:
  • Navigate back to the Sales Invoice list Accounting  > Sales Invoice
  • Click on the submitted Sales Invoice that you need to credit

• Create the Return Document:
  • When you are inside the Submitted Sales Invoice, click the Create + button in the top right corner
  • From the drop-down menu, select Return / Credit Note. 

2.  Reviewing and Editing the Credit Note Details 

A new Sales Invoice form will open, pre-populated with data from the original invoice, but it will be a return:

• The new document will have a status of Not Saved
• Verify that the checkbox Is Return Credit Note is checked.

• The Return Against field should automatically show the ID of the original Sales Invoice you are crediting e.g INV-2025-0003

3. Saving and Submitting the Credit Note 

Once you are satisfied with the Credit Note

• Click the Save button in the top-right corner. The document status will change to Draft
• Click the Submit button to fiscalize the Credit Note
• You will receive a confirmation message that the Credit Note has been submitted successfully