Credit notes
A credit note reduces what a customer owes for an invoice, usually because goods came back or were invoiced by mistake. It reverses the sale and the VAT, and can put the goods back into stock.
A credit note is always issued against an invoice. Open the invoice in Sales›Invoices and click Actions›Create Credit. All credit notes are listed in Sales›Credit Notes.
Issue a credit note
- On the invoice, click Actions›Create Credit. The Invoice Ref. is filled in.
- Check the Date and enter the Reason.
- Choose the Return To Warehouse: where returned goods go back in.
- Click Select Items to Return and choose the items and quantities from the invoice. You can't credit more than was invoiced.
- For batch items, choose which of the sold batches are coming back. Fiscal asks for this before the credit note can be posted.
- Click Save Credit Note.
Items with Return to Stock on Sale Return turned off (for example perishables) give the customer credit but never go back into stock. The grid marks them Not restocked. See Items › Inventory.
Under ZATCA Phase 2
With ZATCA Phase 2 on (see E-invoicing (ZATCA)), the credit note is sent to ZATCA when you post it, like an invoice:
- It is always the same type as its invoice: B2B if the invoice was cleared by ZATCA, B2C if it was reported (and always B2C for a POS sale). The form shows the E-Invoice Type with Same as the invoice. It can't be changed.
- The customer can't be changed: a credit note is for the invoice's customer. You can still edit that customer's details with the pencil beside the customer box.
- The invoice must have been accepted by ZATCA first. The form warns you if it hasn't, so send it first (see The E-Invoice Queue). Invoices dated before your Phase 2 start date are the exception.
- A B2B credit note can be printed once ZATCA has cleared it. A B2C one prints straight away.
Using the credit
The credit note's amount becomes the customer's available credit. It shows in the center as Remaining until it is used:
- apply it to their other open invoices, with Apply to Invoices in the customer center, or with Apply Credit on a payment;
- or pay it back with a refund.
The status moves from Open to Partially Applied and Closed as the credit is used. Once any of the credit has been used, the credit note can no longer be cancelled.
Use a credit note, not cancelling the invoice, when the invoice was correct when issued and only part of it is being returned. For invoices reported to ZATCA's platform, a credit note is the only way to correct them.