Credit notes

A credit note corrects an invoice you have already issued: goods the customer returned, a price reduction agreed afterwards, or a service that was not delivered. An issued invoice is never changed or deleted in Verasol, so a credit note is how you correct it. It reduces what the customer owes, reverses the VAT in the VAT return of its date, and brings returned goods back into stock.

Find your credit notes#

Open Invoices › Credit Notes in the main menu. The totals at the top show the Total credited, the VAT reversed and the Credit still open with customers.

• 1 Issue credit note starts a new credit note.
• 2 Credit that customers still hold, to apply to another invoice or to refund.
• 3 Filter by Status: Open credit, Applied, Refunded or Draft. You can also search by number, customer or invoice, and choose the dates.

Each row shows the Original invoice the credit note belongs to, its Amount and the Open credit left on it.

Issue a credit note#

1. Open the issued invoice and click Issue credit note. You can also click Issue credit note in the list, and pick the invoice in the panel Which invoice is being credited? by its number or the customer's name.
2. Tick each line to credit, or click Credit the whole invoice to tick every line for all that is left on it.
3. For each ticked line, choose how it is credited:
   • Goods returned (for goods you keep in stock, also when they left on a delivery note) or Credit a quantity (for other lines): enter the Quantity to credit.
   • Price reduction: enter the Reduction before VAT. The VAT is reduced at the line's rate.
4. For returned goods, leave The goods come back into stock switched on: they go back into the warehouse they were sold from, at their original cost. Switch it off when only the sale is credited, for example when the goods were damaged or the customer keeps them.
5. Check the Credit note date. It can't be before the invoice date.
6. Check the Reason for the e-invoice. Verasol fills it in from what you credit; change it if another reason fits.
7. Type the Reason. It is printed on the credit note and kept with it for the auditors.
8. Check the summary on the right, then click Issue credit note and confirm.

1 Credit the whole invoice, 2 Goods returned, 3 Quantity to credit, 4 The goods come back into stock, 5 Reason, 6 Issue credit note.

The summary shows the Amount before VAT, the VAT to reverse and the Credit note total, and what the credit does: how much reduces what is still owed on the invoice, how much stays with the customer as open credit, and which goods come back into stock.

Credit notes are numbered in their own series, such as CN-2026-0009. A line that was credited before shows what is Left to credit, and a line that was credited in full can't be ticked again. Only issued invoices can be credited: a draft is simply changed or deleted, and an opening balance carried over from your previous books can't be credited.

What Verasol books#

When Coralbay Medical Centre returned one APC Smart-UPS 3000VA Rack sold for AED 5,200.00 plus VAT, credit note CN-2026-0008 posted this journal entry:

Because the UPS came back into stock, a second entry took it back at its original cost:

The sale is reversed on the revenue account of each line. The output VAT is reversed in the VAT return of the credit note's date.

How the credit is used#

The credit first settles the invoice it was issued against: that invoice's balance due goes down. When the invoice was already paid, or the credit is more than what is still owed, the rest stays with the customer as open credit. The credit note then shows Open credit, with a reminder of the amount still open.

• 1 What was credited: each line, its VAT, and the goods that came back into stock.
• 2 How the credit was used: the invoice it settled, the invoices it was applied to and the refunds.
• 3 Download PDF gives you the tax credit note to send to the customer.

Use the open credit in one of two ways:

• Apply to an invoice: choose another open invoice of the same customer, enter the Amount to apply and click Apply credit. Nothing new is booked, because the credit note already reduced the customer's balance; only the invoice's amount owed goes down. This works between invoices in AED. Take off next to an applied invoice undoes it.
• Refund to customer: enter the Amount to refund, the Date paid, the account it is Paid from, the Payment method and a Reference, then click Record refund. The refund is booked at once: the bank account is credited and the customer's credit is used.

When all the credit is used, the status becomes Applied, or Refunded when some of it was paid back. Applying credit and recording refunds needs the permission Payments (record and void).

Draft credit notes#

A credit note that Vera prepares is saved as a draft. Nothing in a draft is booked. The list shows how many drafts are waiting; click Show drafts, open the draft, check it, and click Issue credit note to book it, or Delete draft.

Related#

• Sales invoices
• Receive payments
• Customers
• How VAT works in Verasol
• The VAT return