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Chapter 5 | Credit Notes

In this section, Lets learn about credit notes and its usage.

Learning Objectives:

  1. What a credit note is and when it is issued?

  2. How to prepare a credit note using Moiboo Software?

How to prepare a credit note in Moiboo Software?

When you return your goods to a nearby store, the shopkeeper sometimes would give you a receipt which you can use to exchange or set-off against future purchases. This receipt is known as a credit note.

In business, Credit notes are issued for the following reasons:

  1. For Sales Returns

  2. To provide a Sales Discount which was not known at the time of making the Invoice

  3. To account for shortages in delivery

Credit notes can be adjusted against current outstanding Invoices or might be allowed to be set-off against future Invoices. Sometimes, it might be followed with a cash refund too.

What is a Credit Note?

  1. Explain the following scenarios

  2. Adjusting the credit note against an existing Invoice

  3. Adjusting an Invoice against a credit note

  4. Making a refund payment against a credit note

1. Adjusting the credit note against an existing Invoice

  1. Go to credit note under income tab.

  2. click on add credit note.

  3. Choose the customer to whom you are raising an credit note. Moiboo will automatically populate the customer’s details.

  4. Select date.

  5. Select products details.

  6. Enable the checkbox.

  7. Moiboo automatically open and display all the invoices for that customer. Make sure you adjust each of the invoice which needs to adjusted.

  8. Click save.

2. Adjusting an Invoice against a credit note

  1. Click invoice under income tab.

  2. Click view invoice and scroll down.

  3. Click credit note.

  4. Add credit note.

  5. Now credit note page appears. Moiboo will automatically populate the customer’s details.

  6. Select products details

  7. Go to save.

3. Making a refund payment against a credit note

  1. Go to credit note under income tab.

  2. click on add credit note.

  3. Choose the customer to whom you are raising an credit note. Moiboo will automatically populate the customer’s details

  4. Select date.

  5. Select products details

  6. Enable the checkbox

  7. Moiboo automatically open and display all the invoices for that customer. Make sure you adjust each of the invoice which needs to adjusted.

  8. Click save.

  9. Go to action button and click add payment.

  10. Now payment page appears. Add payment details.

  11. Click save.

Know credit note Status will change paid