How to create a Credit note with a Return

Create a credit note through a bill

In Odoo, you can create credit notes from returns. A credit note is a document that records a reduction in the amount owed by a customer. You can create credit notes for customers and vendors, manage payments and refunds, and automate follow-ups for late or outstanding payments.

You can create a credit note from scratch by going to Accounting > Customers > Credit Notes, and by clicking on Create. Filling the Credit Note’s form works the same way as the Invoice’s form.

However, most of the time, credit notes are generated directly from the invoices they are related to.

1. To do so, open the Customer Bill, and click on Add Credit Note.

*Note

Credit Notes’ numbers start with “R” and are followed by the number of the document they are related to (e.g. RINV/2020/0004).

2. Fill in the following information.

• Reason: Add the reason for creating the credit note
• Specific: Means you can indicate any preferred reversal date
• Journal Entry Date: The date of reversal will be based on the journal entry date of the original bill/transaction.
• Refund Date 
  
  

Then click REVERSE.

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3. Odoo creates a draft credit note already prefilled with all the necessary information from the original invoice depending on the credit method used. 

4. To confirm the credit note, click on CONFIRM.

5. To make the refund to the customer, click on REGISTER PAYMENT.

6. Fill in the details and CREATE PAYMENT.