Sales Credit Notes in Cin7

A credit note is considered a negative invoice. In Cin7, there are 2 ways in which you can create the sales credit note.

I. Credit Note in a Sales Order

II. Standalone Credit Note

The discussion on these items is found below.

I. Creating the Credit Note in a Sales Order

1. Locate the sales order that you want to create the credit note for.
2. Go to the Credit Note tab, click on Copy from Restock / Invoices and Authorise.
3. At the bottom of the page, click on Customer Credit and fill in the details. This is to "banked" or record the credit so the system will be able to recognise that the customer has some unused credits. Click on Create and Save. 
   1. Note: If the customer opted to get a refund instead of being a issued a credit, this can be done by clicking on the +Refund button and entering the details. Once save and when the sync happens, this will show up in Xero as an open item for reconciliation.

4. Go back to the Invoice tab, at the bottom of the page in the Payment section, and click on Use Customer Credit.

5. Select the credit note that was created by putting a checkmark beside the date on the box. Click on Add & Save.

6. The invoice will now be marked as fully paid following the credit note application to the invoice.

Use of the Customer Credit button

1. This will ensure that Cin7 is able to recognise the unused credits that can be applied to any open invoices by the customer.
2. Information for any remaining credits can be found under Sale and then select on Customer / Credits. 
3. Another window will open; click on Customer Credits. This page will list all of the customers that have credits on them, in here, you can view what are the credit note numbers and how much is the amount of the credit.

II. Creating a Standalone Credit Note in Cin7

This is used when the credit note to be issued is not linked to a particular sales order, such as when the items are not returned, but the customer is requesting a refund due to price overcharge. You will need to create a Refund Service item in order to create a credit note related to refunds.

To create a standalone credit note, please follow the below procedure:

1. Go to Sale, select Sale Credit Note, and choose the customer you want to create a credit note for.

2. On the Credit Note tab, click on the plus sign and select the service item that's most appropriate for the situation.

Note: Since the credit note is not associated with a sales order, the list of products will not come up but it will instead show the service items that are currently in the system.

3. Enter the amount of the refund and click on Authorise.

4. Click on Customer Credit at the bottom of the page and fill in the details. Click on Save.

5. You can now apply the credit note to any open invoices of the customer.