Posting Journal Entries for Credit Note in ERPNext

To record expenses and other deductions from sales such as discounts, sales returns, cancelled purchases and others, journal entry can be created as a credit note.

"Credit Note" is made for a Customer against a Sales Invoice when the company needs to adjust a payment for returned goods. When a Credit Note is made, the seller can either make a payment to the customer or adjust the amount in another invoice.

  1. Log into your ERPNext account.

  2. Click on Accounting .

  3. Under General Ledger, click on Journal Entry.

  4. Click on 'New'.

  5. Under Entry Type, choose Credit Note.

6. In the table, under Account,

      • Debit - Enter the Sales Return Account.

      • Credit - Enter the Customer Account.

7. In the next section, enter the appropriate User Remarks

8. Under Reference Section, enter the References.

9. Click or press CTRL+S to save the document. Note that this does not finalize the document yet. Instead, the journal entry in draft status

10. Review the journal entry. If everything is in order, click on or press CTRL+S to submit and finalize. You are done.