How to Create a Credit Note

Credit notes are essential financial documents used to indicate a reduction in the amount owed by a buyer, often related to a previously issued invoice. They are typically issued to correct errors, accommodate returns, or address issues with goods/services under guarantee. This article will guide you through the circumstances under which a credit note should be issued and how to create one using BigChange.

When to Issue a Credit Note

Common Circumstances for Issuing Credit Notes

• Order Cancellation: If an order is cancelled after an invoice has been issued, a credit note should be created to adjust the buyer's account.
• Invoice Amendments: When an order needs modification post-invoice generation, a credit note is necessary to reflect these changes.
• Invoice Errors: Mistakes on the initial invoice, such as incorrect pricing or quantities, require a credit note for correction.
• Refund Requests: If a client requests a refund, a credit note is issued to document the transaction and adjust the account balance.

Creating a Credit Note in BigChange

Creating a Credit Note in BigChange is straightforward.

• Navigate to [Top menu] CRM
• [Side menu] Financial Documents
• New financial doument (icon).

1. Add item - You can add a manual description for the credit note financial line and a cost in the Selling price box. 
2. Contact - Select a contact to which you are creating a credit note for.
3. Document Type - Select Credit Note.
4. Users can input all the necessary details, including correspondence, notes, templates etc.

If you issue a credit note this will also show in a contacts Statement of Accounts document. Please refer to the seperate article on Statement of Accounts in BigChange.