What is a credit note

A credit note plays a crucial role in rectifying errors on invoices or purchase documents.

A credit note is generated when an issued invoice requires complete or partial reversal, typically due to errors in invoicing or purchasing processes. This document serves as evidence that the original invoice is no longer valid and is essential for maintaining accurate financial records.

When should I create a credit note?

If you have sent an invoice with an incorrect amount or product information, you need to send a credit note. It is also possible that you want to add a discount, and therefore need to send a new invoice, or that you have sent it to the wrong recipient.

For example, if you have invoiced in a way that exceeds the 50,000 kroner threshold, but before you were registered in the VAT register, you need to register in the register, send a credit note to the customer, and then send a new invoice with VAT. In general, you can send a credit note if you need to make changes or have sent an incorrect invoice.

When to create a credit note?

There are several occasions where it may be appropriate to credit all or parts of an invoice. Here are some examples:

• Incorrect amount or product information: If an invoice contains inaccuracies in the amount charged or product details, a credit note is necessary to rectify these errors.
• Addition of discounts: In cases where you wish to apply a discount retroactively, creating a credit note and issuing a new invoice becomes necessary.
• Sending to the wrong recipient: If an invoice is mistakenly sent to the wrong recipient, a credit note must be generated, followed by the correct invoice to the intended party.

How to create a credit note?

1. Look up the invoice you want to credit from the invoice list.
2. Go to the invoice details.
3. Click on CREATE CREDIT NOTE.