Smart Books
Handle a return or price change with a credit or debit note
When goods come back or a price was wrong, adjust the bill the right way so GST stays correct.
Before you start
Who this is for
Anyone handling customer returns, supplier returns or after-sale discounts.
Before you start
- The original sales invoice or purchase bill, or at least its number and date.
Steps
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Step 1: Pick the right note
Under Transactions → Notes & Adjustments: a Credit Note reduces what a customer owes you; a Debit Note reduces what you owe a supplier; a Debit Note (Sales) charges a customer more when an invoice was too low.
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Step 2: Choose with or without item
Choose With item when goods physically come back, so stock is adjusted. Choose Without item for a price change or discount.
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Step 3: Link the original bill
Pick the original sales invoice or purchase bill. This keeps your GST return and the bill’s balance correct.
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Step 4: Enter the amounts and post
Enter what is being returned or adjusted, check the GST, and choose Post.
What happens next
The party’s balance is adjusted, your sales or purchases and GST are corrected, and the note is reported in your GST return.
Questions
Can I just edit the original invoice instead?
For a change after the sale — a return or an agreed discount — a credit or debit note is the correct record, and it is what GST expects.
Ready? Try it now.
Open Smart Books in a new tab and follow along.