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About sales credit notes

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How to create, send and apply credit notes within Sage Accounting.


There will be times when you need to send a credit note to your customer. This may be because they've returned faulty goods, or to reduce the value of an invoice you've sent to them. You can create a credit note from the original invoice. This saves you time, as it populates some of the details using information from the invoice. It then automatically allocates (matches) the credit note to the invoice.

To cancel several invoices with a credit note, you'll need to create a credit note separately. You'll then match it to the relevant invoices later. This process of matching invoices and credit notes together is also known as 'allocating'.

Before sending your first invoice or credit note

You'll need to enter your business details and VAT settings before you create an invoice or credit note. You'll have entered your business address when you signed up. But it's good to take a moment to check your other business and financial settings now.

It is helpful if you set up records for your customers and create your products, and services if you use them. This saves you time when creating your invoices and credit notes. This is because customers, products and services you use are available to select from a list.

If you want to customise the appearance of your credit notes or other documents, now is a great time to do it. For example, add a business logo, or change the template and colour of the documents you send.

Create a sales credit note

Save and send a credit note

Apply a credit note to an invoice