Credit note

A credit note is the document that reverses all or part of a tax invoice when goods come back, a service is cancelled or the price was wrong. The original is never edited: a new document in its own series refers to it and reverses income and output VAT in proportion, reducing what the customer owes. The IRD treats it as a bill return, so it carries the original invoice number, appears in the return register and the VAT Return, and is sent to CBMS like an invoice. In BRAccount it is a Sales Invoice with Is Return ticked and Return Against set, created from the original with the Return button so items and rates copy across.

Credit note total = Returned taxable value + Returned taxable value x 13%; it reduces output VAT for the month.

1. 01Go to Invoicing > Sales Invoice and open the original, ACC-SINV-2026-00004.
2. 02Click Create > Return / Credit Note; a new invoice opens with Is Return ticked and negative quantities.
3. 03Reduce the lines to what actually came back, for example Rs 2,000 of goods.
4. 04Keep the posting date as the return date and the same VAT template.
5. 05Submit. The entry above posts, the credit note syncs to CBMS and lists in the IRD Credit Note Register.
6. 06Refund by Payment Entry or leave the credit to set off the customer's next invoice.

Make a Sales Invoice with Is Return ticked against the original; never edit the original.

Returning Rs 2,000 of the Rs 32,000 sale posts a credit note of Rs 2,260 including VAT.