Credit Note Fields Reference
This page provides detailed information about all fields in the Credit Note module. Reference this guide when creating or reviewing credit notes.
Header Fields
Customer Name
Description: Customer receiving the credit
Type: Dropdown (searchable)
Required: Yes
How It Works:
- Select from existing customer master
- Type to search and filter
- Only active customers appear
- Cannot create credit note without customer
Example: APPLE INDIA PRIVATE LIMITED
Validation:
- Must select existing customer
- Cannot be blank
- Customer must have at least one invoice
Invoice#
Description: Original invoice being credited
Type: Dropdown
Required: Yes
How It Works:
- Shows unpaid or partially paid invoices only
- Filtered by selected customer
- Displays invoice number with date and amount
- System loads invoice details on selection
Example: INV-1001
Validation:
- Must select existing invoice
- Cannot select fully paid invoices
- Invoice must belong to selected customer
Notes:
- Multiple credit notes can reference same invoice
- Each credit reduces invoice outstanding balance
Credit Note Date
Description: Date credit note is issued
Type: Date picker
Required: Yes
Format: DD/MM/YYYY
Default Value: Today's date
How It Works:
- Auto-filled with current date
- Can be changed manually
- Determines accounting period posting
- Appears on credit note PDF
Example: 10/07/2025
Validation:
- Cannot be future date
- Should not be before invoice date
- Must fall within open accounting period
Credit Note#
Description: Unique identifier for credit note
Type: Text (auto-generated)
Required: Yes
Format: CN-XXX (customizable prefix)
How It Works:
- Auto-generated on creation
- Click edit icon to customize
- Must be unique across all credit notes
- Locked after submission
Example: CN-999, CN-1002
Validation:
- Cannot be duplicate
- Cannot be changed after submission
- Must follow configured numbering format
Configuration:
- Set prefix in Configuration → Finance → Auto Id in the Admin console
- Configure starting number and increment
Credit Note Type
Description: Specifies if crediting full invoice or partial items
Type: Dropdown
Required: Yes
Options:
- Full Credit - Credits entire invoice amount
- Partial Credit - Credits selected items only
How It Works:
- Full Credit auto-populates all invoice items
- Partial Credit allows manual item selection
- Determines whether items are editable
- Affects how items table is populated
When to Use:
- Full Credit: Complete returns, invoice cancellation
- Partial Credit: Selected items returned, quantity adjustments
Reason
Description: Why credit note is being issued
Type: Dropdown
Required: Yes
Options:
- Sales Return - Customer returned goods
- Defective Goods - Quality issues
- Price Adjustment - Pricing corrections
- Billing Error - Invoice mistakes
- Short Delivery - Partial delivery charged fully
How It Works:
- Select most appropriate reason
- Appears on credit note document
- Used for analytics and reporting
- Helps track credit patterns
Example: Defective Goods
Impact:
- Reason tracked for quality control analysis
- High defective goods reasons may trigger supplier review
- Price adjustment reasons may indicate pricing policy issues
Reference Number
Description: External reference or customer return number
Type: Text (free form)
Required: No
Maximum Length: 50 characters
How It Works:
- Optional field for cross-referencing
- Enter customer's RMA number or reference
- Helps match with customer records
- Appears on credit note document
Example: CUST-RET-2025-045, RMA-12345
Use Cases:
- Customer return authorization number
- Internal reference code
- Project or job number
- Customer PO reference
Notes
Description: Additional information about credit note
Type: Text area (multi-line)
Required: No
Maximum Length: 500 characters
How It Works:
- Free text field for detailed notes
- Visible on credit note PDF
- Internal reference for team
- Documents specific circumstances
Example: "Credit for 15 defective units returned on 05/10/2025. Goods inspected and confirmed defective by QC team."
Best Practices:
- Document specific quantities or items
- Note dates of returns or events
- Reference approvals or communications
- Include any special conditions
Item Line Fields
Item Details
Description: Product or service being credited
Type: Dropdown (searchable)
Required: Yes (for partial credit)
How It Works:
- For Full Credit: Auto-populated from invoice
- For Partial Credit: Select from invoice items
- Shows item code and description
- Cannot add items not on original invoice
Example: USB-C Power Adapter (ITM-003)
Validation:
- Must exist on original invoice
- Cannot add items not invoiced
- Item details inherited from invoice
Original Qty
Description: Quantity from original invoice
Type: Numeric (read-only)
How It Works:
- Displays quantity from invoice
- Cannot be edited
- Reference for credit quantity
- Used for validation
Example: 23 pieces
Credit Qty
Description: Quantity being credited
Type: Numeric (editable)
Required: Yes
How It Works:
- For Full Credit: Auto-filled with original quantity
- For Partial Credit: Enter quantity to credit
- Must not exceed original quantity
- Drives amount calculation
Example: 1 piece (when crediting 1 out of 23)
Validation:
- Cannot exceed Original Qty
- Must be greater than 0
- Must be whole number for countable items
- Decimal allowed for measurable items (kg, liters)
Unit Price
Description: Price per unit from invoice
Type: Currency (read-only)
How It Works:
- Inherited from original invoice
- Displayed for reference
- Cannot be changed
- Used in amount calculation
Example: ₹20,000.00
Notes:
- Price locked from invoice
- For price adjustments, use discount field
- GST exclusive amount
Discount (%)
Description: Discount percentage on line item
Type: Percentage
Required: No
How It Works:
- Inherited from original invoice
- Additional discount can be applied
- Calculated on: Credit Qty × Unit Price
- Reduces taxable amount
Example: 0%, 5%, 10%
Calculation: Discount Amount = (Credit Qty × Unit Price) × (Discount % ÷ 100)
GST Rate
Description: Goods and Services Tax rate
Type: Percentage (read-only)
How It Works:
- Auto-filled from original invoice
- Based on item's HSN/SAC code
- Shows CGST+SGST or IGST
- Cannot be changed
Example: 18% (shown as 3600 for CGST+SGST split)
Tax Type:
- Intra-state: CGST 9% + SGST 9% = 18%
- Inter-state: IGST 18%
Amount
Description: Line total credit amount
Type: Currency (calculated)
How It Works:
- Auto-calculated from other fields
- Includes discount, excludes tax
- Read-only field
Calculation: Amount = (Credit Qty × Unit Price) - Discount Amount
Example: ₹20,000.00
Address Fields
Billing Address
Description: Your company's billing location
Type: Text block (read-only)
Source: Company settings
Contains:
- Company name
- Complete address
- City, state, pincode
- GSTIN
Purpose:
- Legal billing entity
- GST compliance requirement
- Appears on credit note document
Shipping Address
Description: Customer's delivery location
Type: Text block (read-only)
Source: Original invoice
Contains:
- Customer company name
- Delivery address
- City, state, pincode
Purpose:
- Reference to original delivery
- GST determination (inter-state vs intra-state)
- Matches invoice for consistency
Summary Fields
Sub Total
Description: Total credit amount before tax
Type: Currency (calculated)
How It Works:
- Sum of all line item amounts
- Excludes GST
- Base amount for tax calculation
Calculation: Sub Total = Σ (Credit Qty × Unit Price - Discount) for all items
Example: ₹20,000.00
Tax Amount
Description: Total GST being credited
Type: Currency (calculated)
Components:
- CGST amount
- SGST amount (for intra-state)
- Or IGST amount (for inter-state)
How It Works:
- Calculated on sub total
- Proportional to credited quantities
- Broken down by tax type
Calculation: Tax Amount = Sub Total × (GST Rate ÷ 100)
Example: ₹3,600.00 (18% of ₹20,000)
Total Credit Amount
Description: Final credit note value
Type: Currency (calculated)
How It Works:
- Sub Total + Tax Amount
- This amount credited to customer
- Available for applying to invoices
Calculation: Total = Sub Total + Tax Amount
Example: ₹23,600.00
Impact:
- Reduces customer accounts receivable
- Creates credit balance for customer
- Can be applied to future invoices
Status Field
Credit Note Status
Description: Current state of credit note
Type: Badge (system-managed)
Possible Values:
Pending (Orange):
- Credit note created
- Not applied to any invoice
- Full amount available
- Action needed to apply
Partially Applied (Gray):
- Some credits used
- Balance still available
- Can apply to more invoices
- Track remaining balance
Applied (Green):
- Fully utilized
- No balance remaining
- All credits exhausted
- No action needed
How Status Changes:
- Created: Pending
- Apply partial credits: Partially Applied
- Apply remaining credits: Applied
Credits Field
Available Credits
Description: Remaining unused credit balance
Type: Currency (calculated)
How It Works:
- Starts at Total Credit Amount
- Reduces as credits applied to invoices
- Shows remaining balance
- Becomes ₹0.00 when fully applied
Calculation: Credits = Total Credit Amount - Σ Applied Amounts
Example:
- Total Credit: ₹23,600.00
- Applied: ₹5,555.00
- Remaining Credits: ₹18,045.00
Terms & Conditions
Terms & Conditions
Description: Credit note specific terms
Type: Text area (multi-line)
Required: No
Default Value: System default T&C (if configured)
How It Works:
- Add credit-specific terms
- Appears on credit note PDF
- Can override or supplement defaults
- Communicates credit usage rules
Common Terms:
- Credit validity period
- Usage restrictions
- Return conditions
- Refund policies
Example: "This credit note is valid for 90 days from issue date. Credits can be applied to future invoices only and are non-refundable."
Application Fields
Invoice Number (in Application)
Description: Invoice where credit is being applied
Type: Dropdown
How It Works:
- Shows customer's unpaid invoices
- Select invoice to apply credit
- Multiple invoices can be selected
- Each gets separate application entry
Applied Amount
Description: Credit amount applied to specific invoice
Type: Currency (input)
Required: Yes
How It Works:
- Enter amount to apply
- Cannot exceed invoice pending balance
- Cannot exceed available credits
- Multiple applications tracked separately
Validation:
- Amount > 0
- Amount ≤ Invoice Pending Balance
- Total applications ≤ Available Credits
Full Payment Checkbox
Description: Apply full invoice pending amount
Type: Checkbox
How It Works:
- Check to auto-fill full pending amount
- Validates sufficient credits available
- Quick way to fully settle invoice
- Unchecking allows manual entry
Document Attachments
Documents
Description: Supporting files attached to credit note
Type: File upload (multiple)
Supported Formats:
- PDF documents
- Excel spreadsheets (.xlsx, .xls)
- Word documents (.docx, .doc)
- Image files (.jpg, .png, .pdf)
Maximum Size: 10 MB per file
Common Attachments:
- Return delivery challan
- Quality inspection reports
- Customer email approval
- Photos of defective goods
- Return authorization forms
How to Attach:
- Click Documents tab
- Select file or drag-and-drop
- Files stored in Vault
- Accessible from detail view
Field Validation Rules
| Field | Validation Rule | Error Message |
|---|---|---|
| Customer Name | Must be selected | "Please select a customer" |
| Invoice# | Must be selected | "Please select an invoice" |
| Credit Note Date | Cannot be future date | "Date cannot be in future" |
| Credit Note# | Must be unique | "Credit note number already exists" |
| Credit Qty | Cannot exceed Original Qty | "Credit quantity cannot exceed invoiced quantity" |
| Credit Qty | Must be greater than 0 | "Quantity must be positive" |
| Applied Amount | Cannot exceed Available Credits | "Insufficient credits available" |
| Applied Amount | Cannot exceed Invoice Pending | "Amount exceeds invoice balance" |
Field Dependencies
Understanding how fields interact:
Customer → Invoice:
- Selecting customer filters available invoices
- Only that customer's invoices appear
Invoice → Items:
- Selecting invoice loads invoice line items
- Items cannot be added if not on invoice
Credit Type → Items Editability:
- Full Credit: Items auto-populated, quantities read-only
- Partial Credit: Select items and edit quantities
Credit Qty → Amount:
- Changing credit quantity recalculates line amount
- Also recalculates GST proportionally
All Line Items → Sub Total:
- Sum of all line amounts
- Updates automatically as items change
Sub Total → Tax Amount:
- Tax calculated on sub total
- Changes when sub total changes
Sub Total + Tax → Total Credit:
- Final credit note value
- Available for application
Total Credit - Applications → Available Credits:
- Remaining balance to apply
- Updates after each application
Need help? Contact support at support@bizconnekt.com