Keep credit notes, refunds and stock returns separate

A credit note documents a reduction or correction. A refund moves money back to a customer. A stock return records goods received back. They are related events, but one does not automatically prove the others happened.

Prepare the correction

1. Open the original invoice and confirm the client, invoice number and amount being corrected.
2. Open Credit Notes and create a draft for the relevant client and invoice where applicable.
3. Describe the correction clearly. Check quantities, prices, tax treatment and the reason.
4. Save and review the draft. Confirm the credit is not already recorded elsewhere.
5. Use the available issue/send action only when the document is ready and you have the necessary permissions.

The screenshot shows an unissued draft goodwill credit. No refund, delivery or stock return was performed to create it.

Record the real-world outcome

If you refund money, follow the payment method's workflow and record the actual result. Creating a credit note does not itself transfer money. Check the invoice's payment history and remaining balance afterwards instead of assuming the document and bank movement are the same thing.

If a part is physically returned and should be available for sale again, record an explicit Inventory return with a quantity, reason and invoice reference. Do not return labour or other service quantities to stock.

Preserve a useful history

Avoid deleting the original invoice to hide a mistake. Keep enough description and references that the customer and your adviser can follow the correction. Deleting or crediting an issued invoice does not silently restock its products.

If a credit's effect on a balance looks wrong, stop before issuing another one. Review the original payment, existing credits, workspace and currency. For tax-sensitive corrections, confirm the appropriate treatment with your adviser.

See stock receipts, adjustments and returns and financial record review.