> ## Documentation Index > Fetch the complete documentation index at: https://help.kuverbooks.com/llms.txt > Use this file to discover all available pages before exploring further. # 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 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. 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. Locate the Sales Invoice that needs a return, correction, or credit adjustment. Open the Credit Note module and start a new credit note. Select the customer and Sales Invoice ID. Kuvera Arc automatically loads invoice line items from the selected Sales Invoice. Modify quantities for partial returns or remove line items that should not be included in the credit. Provide a required reason, such as customer return, billing error, or agreed discount. Save as **Draft** to continue editing, or click **Save Credit Note** to submit for approval. An authorized user reviews and approves the credit note. 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. The linked Sales Invoice total or outstanding balance is adjusted downward by the credit amount. The customer's outstanding receivable balance is reduced accordingly. Financial records and accounting reports reflect the approved credit. The approved Credit Note becomes read-only to preserve financial accuracy. ## Credit Note statuses The credit note has been created but not submitted. It remains editable and has no financial impact. The credit note has been submitted for review. Invoice totals and customer balances remain unchanged until approval. The credit note is finalized and applied. The linked invoice balance and customer receivable are reduced. 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 In the left navigation panel, click **Sales**. 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. Unique system-generated credit note identifier. Customer linked to the Credit Note. Current workflow status. Total value of the credit adjustment. Date the Credit Note was created. Opens the Credit Note Details Page. ## Create a Credit Note Go to **Sales > Credit Note**. Click **New Credit Note**. Choose the customer and then select the **Sales Invoice ID** you need to adjust. Invoice items load automatically. Fill in the date, optional reference number, and required reason for the credit. Check the auto-loaded line items. Adjust quantities for partial returns or remove items that should not be credited. Confirm subtotal, discounts, VAT, and total credit amount. Click **Save as Draft** to continue editing, or **Save Credit Note** to submit for approval. ## Credit Note 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. **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. Reduce the quantity to reflect a partial return or partial credit. Remove products that should not be included in the Credit Note. Rates and item-level discounts come from the original Sales Invoice. Totals recalculate when quantities or included items change. Each line item inherits the discount applied on the original invoice. These discounts are calculated per line before totals are summed. 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. Sum of adjusted line totals. Total discount applied. Amount subject to VAT. Amount exempt from tax. Computed VAT on the credit. 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. Go to **Sales > Credit Note**. Find the record using the search bar, status tabs, or filters. Click the **Action** field on the credit note row. Credit note ID, creation date, creator, customer, linked Sales Invoice, original invoice amount, reason, and status. 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. Opens the credit note for modification. Usually available in **Draft** status and, depending on permissions, in **Pending** status. Creates a copy of the credit note as a new **Draft**, including customer, invoice reference, and line items. Cancels the credit note and excludes it from financial calculations. A reason is required before voiding. 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 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. Find a specific Credit Note by its unique number. Narrow results to a specific date or date 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. Downloads all Credit Note records, regardless of active filters or status tabs. Downloads only records currently visible in the listing, including active filters, status tab selection, or search terms. Export Credit Notes for spreadsheet use. Export Credit Notes for document sharing. Export Credit Notes for data processing or integrations. Exported files are generated as a snapshot of the current listing view.