Professional credit notes for product returns, post-invoice discounts, damaged goods refunds, and invoice corrections with full GST compliance
Create Credit NoteCredit note must reference original invoice. Select invoice from list, automatically imports: Invoice number, Customer details, Original items & prices, GST details.
GST Rule: Credit note without original invoice reference is INVALID for GST purposes. Always link!
Customer returning only 10 of 100 items? Issue partial credit note for 10 items. Or issue full credit note canceling entire invoice.
Partial Credit:
Invoice: ₹1L (100 items). Return: 10 items. Credit note: ₹10k. Balance due: ₹90k
Full Credit:
Invoice: ₹1L. All items returned. Credit note: ₹1L. Balance: ₹0
Select reason: Product Return, Damaged Goods, Post-Sale Discount, Invoice Error, Quality Issue. Reason recorded for audit trail.
Examples: "10 units damaged in transit" | "5% loyalty discount given after invoice" | "Price overcharged by ₹5k"
Credit note automatically calculates reversed GST. If invoice had ₹10k GST, credit note for 50% items reverses ₹5k GST. No manual calculation!
Example: Invoice: ₹1L + ₹18k GST (18%). Return 10 items worth ₹10k. Credit: ₹10k + ₹1.8k GST reversed.
Credit note issued. Now what? Either: Refund customer immediately, OR Adjust credit against customer's next invoice as advance payment.
Immediate Refund:
Issue credit ₹10k. Transfer ₹10k back to customer. Settlement done.
Adjust Against Next Order:
Credit ₹10k carried forward. Next order ₹50k - ₹10k credit = ₹40k due.
Customer returning 20 different items from a large order? Use voice: "Item 1: 10 pieces damaged... Item 2: 5 pieces wrong size..." Save time!
Voice automatically selects items from original invoice, updates quantities, calculates credit amount!
Credit notes must be reported in GSTR-1 (GST return). Billmator automatically includes all credit notes in your GSTR-1 export. No manual entry!
Credit notes appear in GSTR-1 Table 9B (Credit/Debit Notes). Export data → Upload to GST portal. Done!
Which products get returned most? Which customers return frequently? Credit note analytics show trends: "Product X has 20% return rate - quality issue?"
Identify problem products, serial returners, common return reasons. Improve business!