Issue and Apply Credit Notes for Invoice Adjustments

Create and manage Credit Notes in Kuvera Arc to handle returns, billing corrections, and post-invoice discounts while keeping receivables accurate.

A Credit Note reduces the amount a customer owes on an existing Sales Invoice. Use Credit Notes when customers return goods, billing errors need correction, or a post-invoice discount needs to be applied without deleting or voiding the original invoice.

A Credit Note must be linked to a specific Sales Invoice. Standalone Credit Notes are not supported.

Sales Invoice vs. Credit Note

Sales Invoice

A Sales Invoice represents the amount a customer owes for products or services delivered. It is the primary billing document and the financial record used for payment tracking.

Credit Note

A Credit Note reduces the value of a Sales Invoice after it has been issued. It is applied against the linked invoice’s outstanding balance.

Credit Note workflow

Credit Notes follow an approval process before any financial adjustment is applied.

1. Identify the invoice

   Locate the Sales Invoice that needs a return, correction, or credit adjustment.

2. Create a Credit Note

   Open the Credit Note module and start a new credit note. Select the customer and Sales Invoice ID.

   New Credit Note form

3. Review auto-loaded items

   Kuvera Arc automatically loads invoice line items from the selected Sales Invoice.

4. Adjust items

   Modify quantities for partial returns or remove line items that should not be included in the credit.

5. Enter a reason

   Provide a required reason, such as customer return, billing error, or agreed discount.

6. Save or submit

   Save as Draft to continue editing, or click Save Credit Note to submit for approval.

7. Approve the credit note

   An authorized user reviews and approves the credit note.

8. Apply the credit

   After approval, the linked invoice balance and customer receivable are reduced by the credit amount.

Approved Credit Note impact

When a Credit Note is approved, Kuvera Arc applies the financial adjustment automatically.

Invoice balance reduced

The linked Sales Invoice total or outstanding balance is adjusted downward by the credit amount.

Receivable reduced

The customer’s outstanding receivable balance is reduced accordingly.

Reports updated

Financial records and accounting reports reflect the approved credit.

Record becomes read-only

The approved Credit Note becomes read-only to preserve financial accuracy.

Credit Note statuses

Draft

The credit note has been created but not submitted. It remains editable and has no financial impact.

Pending

The credit note has been submitted for review. Invoice totals and customer balances remain unchanged until approval.

Approved

The credit note is finalized and applied. The linked invoice balance and customer receivable are reduced.

Void

The credit note has been cancelled. It is excluded from financial calculations and has no impact on the invoice or customer balance.

Only Approved Credit Notes reduce invoice balances and customer receivables. Draft, Pending, and Void Credit Notes have no financial impact.

Access Credit Notes

Credit Note in the Sales sidebar

1. Open Sales

   In the left navigation panel, click Sales.

2. Select Credit Note

   Click Credit Note. The Credit Note Listing Page opens.

Credit Note listing

The listing page includes status tabs, search, row-count controls, export tools, and a void Credit Notes view.

Credit Note Listing Page

Credit Number

Unique system-generated credit note identifier.

Customer Name

Customer linked to the Credit Note.

Status

Current workflow status.

Total Amount

Total value of the credit adjustment.

Created On

Date the Credit Note was created.

Action

Opens the Credit Note Details Page.

Create a Credit Note

1. Open Credit Note

   Go to Sales > Credit Note.

2. Click New Credit Note

   Click New Credit Note.

   New Credit Note button

3. Select customer and invoice

   Choose the customer and then select the Sales Invoice ID you need to adjust. Invoice items load automatically.

   Customer and invoice selection

4. Enter credit note details

   Fill in the date, optional reference number, and required reason for the credit.

5. Review and adjust invoice items

   Check the auto-loaded line items. Adjust quantities for partial returns or remove items that should not be credited.

6. Review calculated totals

   Confirm subtotal, discounts, VAT, and total credit amount.

7. Save or submit

   Click Save as Draft to continue editing, or Save Credit Note to submit for approval.

Credit Note fields

Header fields

Select Customer — Required customer whose invoice is being adjusted.

Sales Invoice ID — Required invoice linked to the Credit Note.

Date — Optional Credit Note date. Defaults to today if left blank.

Reference — Optional internal or external reference number.

Reason — Required reason for the credit adjustment, such as customer return, billing error, or agreed discount.

Item table fields

Product Name — Auto-loaded from the selected invoice and read-only.

Quantity — Editable quantity used for partial return or partial credit.

Rate per Item — Inherited from the original invoice and read-only.

Discount — Inherited from the original invoice line settings.

Total — Recalculates automatically when quantity changes.

Selecting a Sales Invoice ID automatically loads all invoice line items into the Credit Note item table.

Adjust credit note items

Use the item table to define which invoice items are being credited.

Credit Note item table

Adjust quantity

Reduce the quantity to reflect a partial return or partial credit.

Remove line items

Remove products that should not be included in the Credit Note.

Inherited pricing

Rates and item-level discounts come from the original Sales Invoice.

Automatic totals

Totals recalculate when quantities or included items change.

Item-level discount

Each line item inherits the discount applied on the original invoice. These discounts are calculated per line before totals are summed.

Overall discount

An additional adjustment-level discount can be applied to the Credit Note total, separate from item-level discounts.

Kuvera Arc calculates item-level and overall discounts independently and combines them in the final Credit Note total.

Credit Note totals

The summary section calculates credit values automatically.

Subtotal

Sum of adjusted line totals.

Discount

Total discount applied.

Taxable Total

Amount subject to VAT.

Non-Taxable Total

Amount exempt from tax.

VAT Total

Computed VAT on the credit.

Total Amount

Final credit value to be applied.

Invoice selection is mandatory. The financial impact only takes effect after the Credit Note is approved.

Credit Note details page

The Credit Note Details Page shows the full record, including the linked invoice, credited items, totals, current status, and available actions.

1. Open Credit Note

   Go to Sales > Credit Note.

2. Locate the credit note

   Find the record using the search bar, status tabs, or filters.

3. Open the record

   Click the Action field on the credit note row.

   Open Credit Note details

Credit Note Details Page

Credit Note Information

Credit note ID, creation date, creator, customer, linked Sales Invoice, original invoice amount, reason, and status.

Product & Summary Details

Credited items with product name, rate, quantity, discount, totals, subtotal, VAT, and total credit amount.

The Credit Note Details Page is audit-ready. It shows who created the adjustment, which invoice it applies to, why it was raised, and how much was credited.

Credit Note actions

Actions depend on Credit Note status and user permissions.

Edit Credit Note

Opens the credit note for modification. Usually available in Draft status and, depending on permissions, in Pending status.

Duplicate Credit Note

Creates a copy of the credit note as a new Draft, including customer, invoice reference, and line items.

Void Credit Note

Cancels the credit note and excludes it from financial calculations. A reason is required before voiding.

Approve Credit Note

Finalizes the credit note and applies the financial adjustment.

Upon approval:

• The linked invoice balance is reduced by the credit amount
• The customer’s receivable balance is reduced
• The Credit Note becomes read-only
• Related financial reports are updated

View Print Preview

Opens a print-ready version of the Credit Note for review, records, or sharing with the customer.

Financial adjustments happen only after Approve is executed. Void actions require a reason and cannot be undone.

Filter Credit Notes

Use Filter Data to search and narrow Credit Note records.

Credit Note filter panel

Credit Note Number

Find a specific Credit Note by its unique number.

Creation Date

Narrow results to a specific date or date range.

Amount Range

Filter by minimum and maximum credit note value.

Combine multiple filters if needed. Click Apply Filter to update the list, or Clear to reset conditions.

Export Credit Notes

Use Export Data to download Credit Note records. Exporting does not modify any records.

Export Credit Notes panel

Full Export

Downloads all Credit Note records, regardless of active filters or status tabs.

Current View Export

Downloads only records currently visible in the listing, including active filters, status tab selection, or search terms.

XLSX

Export Credit Notes for spreadsheet use.

PDF

Export Credit Notes for document sharing.

CSV

Export Credit Notes for data processing or integrations.

Exported files are generated as a snapshot of the current listing view.