How to create a credit note

Sometimes things change after you’ve already sent an invoice – maybe you overcharged, a customer returned goods, or you agreed to give a partial refund. That’s where a credit note comes in. It reduces (or cancels) the amount a customer owes, while keeping your books accurate and compliant.

When you’ll need a credit note (and why it matters)

• Over-invoicing: You accidentally charged for 12 items instead of 10. A credit note fixes the extra R200 without touching the original invoice.
• Returns: A customer brings back stock. The credit note reduces what they owe (or records what you’ll refund).
• Post-invoice discounts: You agree to knock off 5% after sending the invoice – the credit note documents the adjustment.
• Cancelled work: The job falls through after invoicing. Instead of deleting the invoice (never do this), a credit note cancels it out properly.

In all these cases, the credit note keeps your customer happy, your accounts accurate, and your tax records clean.

How to create a credit note in stub

1. Go to Sales in the left menu.
2. Click the green Invoice button (top right).
3. From the dropdown, choose Credit Note.
4. Select the customer and add the details:
   • Original invoice reference (Add as note.)
   • Date
   • Products/services being credited
   • Amounts (full or partial)
   • Reason for the credit (optional but recommended)

5. Save and send to your customer.

What happens in your accounts

• The credit note reduces the balance of the original invoice or the customer account.
• If the invoice was already paid, it shows as an amount refundable to the customer.
• Your income and VAT reports adjust automatically, so you don’t overstate revenue or tax owed.

Tips for credit notes

• Never delete an invoice: Always issue a credit note to reverse or adjust.
• Add context: A short reason (e.g. “Returned goods” or “Agreed discount”) keeps records clear.
• Match VAT correctly: Credit notes must reflect the same VAT treatment as the original invoice.
• Send promptly: Customers appreciate quick, transparent corrections.

Credit notes aren’t just paperwork. They protect you, reassure your customers, and keep your accounts clean and compliant. With stub, they’re as easy to issue as an invoice.