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Orbit Finance
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App guides · Credit Notes

How to issue a credit note in Orbit Finance

A credit note reduces what a customer owes you after you have sent an invoice. Use it when goods are returned or you overcharge. Do not edit the original invoice. Instead, create a new document with a CN number. This keeps a clear audit trail. Apply it to the specific invoice to reduce the balance.

Checked against Orbit Finance · 6 November 2026

What is a credit note for?

A credit note is a sales document that cancels or reduces an invoice you already sent. It is used when a customer returns goods, you overcharge, or a job is cancelled. It keeps the original invoice standing for audit purposes. Saving one changes what the customer owes you and shows on their statement; it only reaches your accounts when it is applied to an invoice whose sale was posted automatically.

How do I issue a credit note against an invoice?

  1. Press New credit note.
  2. Pick the Customer to load their outstanding invoices.
  3. Set the Date to the date you agreed to the credit.
  4. Type the Reason for the credit note.
  5. Choose the invoice under Apply to invoice.
  6. Add lines for each item being credited with description, quantity, and unit price.
  7. Check the Total and press Save.

Can I issue a credit note without an invoice?

  1. Follow the standard steps but leave Apply to invoice on None.
  2. Save the document.
  3. Note that it does not reduce any invoice balance.
  4. Note that it does not appear on the Customer Credits screen.

How do I check and send the credit note?

  1. Click any row to preview the document.
  2. Press Save PDF to keep a copy.
  3. Use the WhatsApp action to send it if enabled in Features & Integrations.
  4. Check the list to ensure the credit note is attached to an invoice.

How do I remove a credit note issued in error?

  1. Use the bin icon on the row and confirm. The credit note and its allocations are removed.
  2. The invoice it was applied to returns to its old balance, so the customer owes that amount again.
  3. Deleting a linked applied credit note reverses its automatic journal with it.
  4. A manually posted adjustment still needs its own controlled reversal.
  5. Think twice before deleting one the customer already received. A fresh invoice is usually the honest fix.

What this does to your books

When the credit note is applied to an invoice whose sale was posted automatically, saving it debits Sales (4000) for the net amount and credits Trade Debtors (1100) for the gross amount. The tax share debits SST Payable, using the credit note's own tax, or the invoice's tax ratio when it has none. An unapplied credit note posts nothing. For a manually posted sale, keep your manual entries consistent, and never add a second manual reversal for a credit note that already mirrors a linked sale, or Sales is reduced twice.
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Questions, answered

Why can't I just edit the original invoice?

Editing an invoice destroys the audit trail because the customer holds a copy of the original. A credit note leaves both documents standing. This ensures both parties have matching records and proves what was agreed.

Does a credit note show on the Customer Credits screen?

No, credit notes never appear on the Customer Credits screen. That screen only reads deposits and overpayments. If you want the customer to hold the amount for a future invoice, you must record it separately on Customer Credits.

What happens to my accounts when I save a credit note?

If it is applied to an automatically posted invoice, it reverses net Sales and any SST Payable share, and credits Trade Debtors for the gross amount. If it is not applied to an invoice, it posts nothing and only changes the customer statement.