Credit notes

Credit notes are similar to invoices, except that they are used to reduce the amount owed to you by a customer. A credit note relates to a particular customer and remains open until its balance is fully applied to raised invoices (reduced the amount payable) or refunded in cash.

Credit note usage scenarios

Here are some common scenarios in which a credit note can be used:

  • You issued an invoice and the customer noticed (before paying) a quantity was too high. Rather then delete and recreate the invoice, you can create a credit note for the over invoiced quantities or for the difference in the value of certain products. The entire value of the credit note should then be applied to the open invoice, reducing the balance payable.
  • You issued an invoice, the customer paid and then returned some or all of the goods. You should create a credit note for the returned goods. You can then either immediately create a refund for the value of the credit note (and transfer the cash) or leave the credit note open to apply to some future invoice for this customer.
  • A customer has overpaid for a certain invoice. When entering the payment for the invoice, Stitchex will prompt you to create a credit note for the value of the overpayment. You can then either create a refund for this credit note (refunding the customer immediately) or leave the credit note open to apply to a future invoice.

Creating a credit note

You can create a credit note related to a sale at any time after the sale is confirmed (and content fixed). When looking at the sale details, navigate to the "Create" drop-down on the right-hand side and select Credit Note from the menu:

Applying a credit note to an invoice

Find the invoice you would like to apply an open credit note to. Click the "Apply credit" link to open the Apply Credit Note dialog. Choose the open credit note from the drop-down and enter the value you would like to credit, up to the total remaining credit left on the credit note.

The amount due on the invoice will reduce appropriately:

If you navigate back to the credit note in question, you will notice that the remaining credit has reduced:


Applying an overpayment to an invoice will result in a "Overpayment" being created. Overpayments are listed at the right of the sale workflow beneath credit notes. Overpayments act like credit notes in that they can be applied as payment to future invoices.


If you need to provide a customer with a refund (you are issuing a credit note for a paid invoice and don't wish to carry a credit over to a future sale) you should create a credit note then record a refund to reduce the remaining credit and close the credit note.

Navigate to the credit note in question and click "Add refund" to open the Add Refund dialog:

You can enter an optional reference and an amount refunded. Refunding (or applying) the entire value of the credit note will close the credit note.

Viewing open credit notes

Navigate to a stockist details page. You will find a list of open credit notes (those not refunded or credited to invoices) towards the bottom of the page.

Next steps

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