🔍 What This Guide Covers
This guide covers the full CRUD lifecycle of a Credit Note in DaaiSuite — how to Create one from scratch, Edit it after saving, View the printable document, and Cancel it when needed. For a conceptual overview of what a Credit Note is and when to use it, see the Credit Note Overview.
🧾 Creating a Credit Note
📍 Screen: Billing → Credit Note → click Add (top-right green button). The Add Credit Note aside panel slides open on the right.
Creating a Credit Note is a two-stage process: fill in the header fields first, then select and adjust the billing items from the chosen Invoice.
🔹 Stage 1 — Header Fields
| Field | Required? | Description |
|---|---|---|
| Invoice Number | Required | Select the Invoice you want to credit from the dropdown. As soon as you pick one, the system loads the Invoice’s billing items into the table below and auto-fills the Client, Project, currency, and GST setup — you do not need to enter these separately. Only Invoices with outstanding or paid amounts appear in this list. |
| Date | Required | The date on which this Credit Note is issued. Cannot be a future date. It is good practice to keep Credit Note dates in chronological order relative to the parent Invoice. |
| Debit Note Number | Optional | If the client has raised a corresponding Debit Note on their end, capture the reference number here for cross-referencing. Leave blank if not applicable. |
| Reason | Required | Why this Credit Note is being raised. Choose one of: Overcharge, Cancellation, Discount, or Other. |
💡 Currency follows the Invoice. The Credit Note automatically inherits the parent Invoice’s currency (including the exchange rate that was frozen on it). You do not enter a fresh exchange rate — the original Invoice’s rate carries through, keeping the INR figures consistent across both documents. The currency code is displayed in all amount columns on both the form and the PDF.
📦 Stage 2 — Billing Items
Once you select an Invoice, the Billing Items table populates with every line item from that Invoice. Each row shows the original values read-only. You decide which lines to include in this Credit Note by ticking the Select checkbox on each row.
| Column | Description |
|---|---|
| # | Row reference number from the original Invoice. Preserved so you can match each Credit Note line back to the parent Invoice. |
| Select | Tick this checkbox to include the line in the Credit Note. Ticking it reveals a Corrected Values sub-row directly beneath — that is where you enter what the line should have been. Unticking hides the sub-row and excludes that line from the Credit Note. |
| Title | Read-only — the item name from the original Invoice line. |
| HSN Code | Read-only on the original row — editable in the Corrected Values sub-row if the HSN was recorded incorrectly. |
| Quantity | Read-only — original quantity from the Invoice line. |
| Unit/Price | Read-only — the original per-unit price. |
| Net Amount | Read-only — original net amount for the line (before tax). |
| CGST / SGST / IGST | Read-only on the original row. Displayed as the tax rate (%) with the calculated rupee amount shown underneath. Both are editable in the Corrected Values sub-row. |
| Total Amount | Read-only — the original line total including all applicable tax. |
✏️ Corrected Values Sub-Row
When you tick a line’s Select checkbox, a Corrected Values sub-row appears directly below it. Enter what that line should look like after the correction — the system calculates the credit as the difference between the original and the corrected figures.
| Field | Description & Rules |
|---|---|
| HSN Code | Enter the corrected HSN if the original was wrong. Otherwise leave as-is. |
| Quantity | The corrected final quantity. Must be less than or equal to the original — the system will not accept a value greater than the original quantity. |
| Unit Price | The corrected per-unit price. Must be less than or equal to the original unit price. |
| Net Amount | Auto-calculated from corrected Quantity × Unit Price. Read-only — you cannot type in it directly. |
| CGST / SGST / IGST | Enter each corrected tax as a percentage (%). Must be less than or equal to the original rate. The rupee amount and the Total Amount auto-update. Which fields are active depends on the intra-state vs inter-state rule — see the GST note below. |
| Total Amount | Auto-calculated — the corrected Total including tax. Read-only. The credit being issued equals (Original Total) minus (this Corrected Total). |
📍 GST — CGST + SGST vs IGST
- If the client’s state matches your company’s state (intra-state) → CGST and SGST apply; IGST is not applicable.
- If they differ (inter-state) → IGST applies; CGST and SGST are not applicable.
- This rule is inherited from the parent Invoice automatically the moment you select the Invoice Number. You do not need to configure it manually.
📌 Common adjustment patterns
- Quantity Reduction — keep Unit Price unchanged, reduce the Quantity. The system credits the price and GST for the dropped units.
- Price-Per-Unit Reduction — keep Quantity unchanged, lower the Unit Price. Use this for retroactive discounts or overbilling corrections.
- Tax Rate Change — keep Quantity and Unit Price unchanged, change the CGST / SGST / IGST percentage. Use this when the wrong GST slab was applied on the original Invoice.
- Full Line Reversal — set Quantity to 0 (or Unit Price to 0) to credit the entire line.
📊 Totals Summary
Below the Billing Items table, the form shows a running totals block:
| Row | What it Shows |
|---|---|
| Item Total | Sum of all corrected Net Amounts (before tax) across every ticked line. |
| Taxes | Total CGST + SGST + IGST being credited. |
| Grand Total | The final Credit Note value — Item Total plus all Taxes. This is the amount being credited against the Invoice. |
💾 Saving the Credit Note
When all fields are filled and at least one billing line is selected and corrected, click the Save button in the aside header. The button shows a spinner and the label changes to Saving… while the request is in flight — do not click again. On success the aside switches to VIEW mode showing the saved record.
⚠️ At least one line must be selected. You cannot save a Credit Note with no lines ticked. If you try, the form will flag the validation error.
✏️ Editing a Credit Note
📍 Screen: Billing → Credit Note → open any Credit Note row → the aside opens in VIEW mode → click the Edit button in the aside header (visible only on the Details tab).
How to Edit
- Navigate to Billing → Credit Note.
- Click any row to open the Credit Note in VIEW mode.
- In the aside header, click Edit (pencil icon). The mode badge changes from VIEW to EDIT.
- Make your changes in the editable fields (see restrictions below).
- Click Update in the aside header to save. The button shows Updating… while saving.
What Can and Cannot Be Edited
Editing a saved Credit Note has deliberate restrictions to protect the integrity of the document:
| Field | Editable in Edit Mode? | Notes |
|---|---|---|
| Reason | Yes | You can change the reason category. |
| Debit Note Number | Yes | You can add or correct the cross-reference. |
| Date | No — locked | The Credit Note date is frozen once saved to maintain the audit trail. |
| Invoice Number | No — locked | The parent Invoice cannot be changed after creation. Cancel and re-create if you picked the wrong Invoice. |
| Billing Items / Corrected Values | No — locked | The line-item adjustments are frozen. The adjustment summary remains visible for reference but all line controls are disabled in EDIT mode. |
⚠️ Edit is blocked entirely if the Credit Note is cancelled. The Edit button is hidden when
isCancel = true. You cannot edit a cancelled Credit Note.
💡 No changes detected? If you click Update without modifying anything, the system detects that no fields changed and shows an “No Changes Made” notification — the record is not re-saved unnecessarily.
Adjustment Summary (Edit Mode)
When you open a Credit Note in Edit mode, a read-only Credit Note — Adjustment Summary table appears below the Billing Items. This shows the stored credit note values (the amounts that were calculated when the Credit Note was originally created) so you have full context while editing the other fields.
👁️ Viewing a Credit Note
📍 Screen: Billing → Credit Note → click any row. The aside opens in VIEW mode with up to four tabs along the top.
The Details Tab (View Mode)
The Details tab is the default view when you open a Credit Note. It shows all the fields and related data in a structured read-only layout:
| Section | What it Shows |
|---|---|
| Credit Note Details | Credit Note No, Date, Invoice No, Debit Note No, Reason, Cancelled? status, Client name, Project name, Applied Amount, Refunded Amount. A status chip in the header shows Active (green) or Cancelled (red) at a glance. |
| Credit Note Values | The net credit being applied — columns: #, Title, HSN, Qty, Unit Price, Net Amount, CGST, SGST, IGST, Total. This is what was debited from the Invoice. |
| Corrected Invoice Values | The corrected version of each Invoice line — the same columns as Credit Note Values. Shows what the Invoice line was changed to. |
| Refund Items | List of any refunds processed against this Credit Note — Refund No, Date, Transaction ID, Mode, Amount. Only appears if at least one refund has been recorded. |
| Applied Invoices | List of any other Invoices this Credit Note’s balance has been applied to — Date, Invoice Number, Amount Applied. Only appears if the credit has been applied to other Invoices. |
List View Columns
In the Credit Note list grid, the default visible columns are:
| Column | Description |
|---|---|
| Cancelled? | Shows “Cancelled” badge (red) or “No” for active Credit Notes. |
| Credit Note No | The auto-generated Credit Note number. |
| Date | The Credit Note date (dd-MMM-yyyy format). |
| Invoice No | The parent Invoice number this Credit Note was raised against. |
| Amount | The total Credit Note value (including tax), displayed with the correct currency symbol. |
| Debit Note No. | The cross-reference Debit Note number if one was recorded. |
| Action | Three-dot context menu (only shown on non-cancelled rows) — contains Refund, Apply to Invoice, and Cancel options. |
💡 Navigating between records. When a Credit Note is open in VIEW mode on the Details tab, you can use the Previous (‹) and Next (›) arrow buttons in the aside header to move to the preceding or following Credit Note without closing the panel. These buttons are only visible when you have Read All permission.
The Tabs Available in View Mode
| Tab | What it Contains | Visibility Condition |
|---|---|---|
| Details | The full Credit Note record — all fields, billing item tables, refund history, applied invoices history. | Always visible in VIEW mode. |
| Logs | A complete change history — every field that was edited, when, and by whom (username). Dates shown as dd-MMM-yyyy HH:mm. | Visible only to roles with Changelog permission. |
| Credit Note View | The printable, branded PDF layout of the Credit Note — exactly what the client sees. Contains action buttons for Share via WhatsApp, Send Email, and Print. | Visible whenever the Credit Note has been saved (viewDetails is not null). |
| Refund | The Refund Payment screen for returning cash to the client. See the Refund Client Guide. | Visible only when the Credit Note has a positive cash balance (actualPaidInvoiceAmount > 0), is not cancelled, and the user has Update permission. |
📄 The Credit Note View Tab (Printable Document)
📍 Screen: Open any Credit Note → click the Credit Note View tab.
The Credit Note View tab shows the branded, print-ready version of the document — formatted exactly as the client will receive it. This is not the same as the Details tab (which shows the internal record). The Credit Note View is the outward-facing document.
What the Printable Document Contains
| Section | What it Shows |
|---|---|
| From (Your Company) | Company name, address, street, city, pincode, phone, CIN, GSTN — all pulled from the snapshot captured at the time the Credit Note was created. Editing your company profile later does not change this printed copy. |
| To (Client) | Client company name, street, city, state, email, phone, company number, tax ID. |
| Credit Note Metadata | Invoice No., Debit Note No., Credit Note No., Credit Note Date — the key reference identifiers for the document. |
| Credit Note Values table | The net credit amounts — Title/Description, HSN, Quantity, Unit/Price, Net Amount, CGST, SGST, IGST, Total Amount. Headings include the currency code in brackets. |
| Corrected Invoice Values table | The original Invoice lines alongside their corrected versions. For each line, the original row appears first, then a Corrected Values sub-row directly beneath, matching the pair for easy comparison. |
| Totals footer | Subtotal, CGST, SGST, IGST (each broken out), and a prominent TOTAL figure — the full Credit Note value. |
💡 Snapshot Company Details. The company name, address, GSTIN, and logo are stored at the moment the Credit Note is created from the parent Invoice record — not fetched live from the Company Settings. This means the printable document is permanently accurate to the point in time it was issued, even if you later update your company profile.
Action Buttons on the Credit Note View Tab
| Button | What it Does |
|---|---|
| Share via WhatsApp | Opens WhatsApp (web or app) with a pre-filled message containing the Credit Note summary, ready to send directly to the client. |
| Send Email | Emails the Credit Note (branded PDF attached) to the client’s email and the assigned owner. The button shows a spinner while sending. Email is delivered via Zepto Mail. |
| Generates a branded PDF of the Credit Note for download or printing directly from the browser. The button shows a spinner while the PDF is being generated. |
📌 Share / Send Email / Print are only available from the Credit Note View tab — they are not present on the Details tab or in the aside header. Switch to the Credit Note View tab to access these actions.
🔘 Action Buttons — Full Reference
📍 Screen: The aside header and the Details tab footer — action buttons appear and disappear based on the Credit Note’s state and your permissions.
| Button / Control | Location | When Visible | What it Does |
|---|---|---|---|
| Save | Aside header | ADD mode only | Creates the Credit Note. Shows “Saving…” spinner while in flight. |
| Edit | Aside header | VIEW mode, Details tab, not cancelled, Update permission | Switches the aside into EDIT mode so you can update the Reason or Debit Note Number. |
| Update | Aside header | EDIT mode, Update permission | Saves edits. Shows “Updating…” spinner while in flight. If no changes were made, shows “No Changes Made” and exits EDIT mode. |
| Apply to Invoice | Aside header | VIEW mode, not cancelled, Update permission, cash balance exists | Opens the Adjust Invoice dialog — lets you pick another open Invoice for the same client and apply the unused credit balance against it. See the Adjust Credit Against Client Invoice Guide. |
| Refund (tab) | Tab bar | VIEW mode, not cancelled, Update permission, cash balance exists | Opens the Refund Payment screen for processing a full or partial cash refund to the client. See the Refund Client Guide. |
| Cancel Credit Note | Details form footer | VIEW or EDIT mode, Delete permission | Cancels the Credit Note. Requires confirmation. See the full cancellation section below. |
| ‹ / › (Previous / Next) | Aside header | VIEW mode, Details tab, Read All permission | Navigates to the previous or next Credit Note record without closing the aside. |
| Close (✕) | Aside header | Always | Closes the aside. If unsaved changes exist (EDIT mode), a “You have unsaved changes!” confirmation dialog appears — you can save or discard before closing. |
💡 Row-level actions in the list. Non-cancelled Credit Notes also show a three-dot Action menu in the list grid. From there you can trigger Refund, Apply to Invoice, and Cancel without opening the full aside.
🚫 Cancelling a Credit Note
📍 Screen: Open any non-cancelled Credit Note → the Cancel Credit Note button appears at the bottom of the Details form (visible when you have Delete permission). Alternatively, use the three-dot Action menu in the list view.
How to Cancel
- Open the Credit Note from Billing → Credit Note.
- On the Details tab, scroll to the bottom of the form and click Cancel Credit Note (red button).
- A confirmation dialog appears: “Action: Delete Record” — confirm to proceed.
- The Credit Note is marked as cancelled. The status chip changes to Cancelled (red). The record remains in the list — it is never permanently deleted.
What Happens When a Credit Note is Cancelled
| Area | Effect of Cancellation |
|---|---|
| Parent Invoice Outstanding | The parent Invoice’s outstanding amount is restored — the credit that was reducing the Invoice’s balance is reversed. The Invoice goes back to reflecting the full (or original) unpaid amount. |
| Cash Balance on the Credit Note | The Credit Note’s remaining cash balance (Applied Amount / Refunded Amount) resets to zero. Any amounts that had been applied to other Invoices or refunded are reversed in the calculation. |
| Catalog / Stock | If the Credit Note covered Catalog items that count quantity (isCountableQty), the stock that was returned by the Credit Note is reversed — the inventory goes back to the level it was at before the Credit Note was created. (Note: Invoice cancellation does not trigger this stock reversal — only Credit Note cancellation does.) |
| GST Records | The Credit Note is excluded from GST reporting once cancelled. It no longer affects CGST / SGST / IGST output figures. |
| Edit / Apply / Refund | Once cancelled, the Edit button is hidden, the Apply to Invoice button is hidden, and the Refund tab disappears. The Credit Note becomes read-only in VIEW mode. |
| Audit Trail | The Credit Note remains permanently in the list with a “Cancelled” status. The Logs tab preserves the full change history, including the cancellation event. It is never deleted from the database. |
⚠️ Cancellation is irreversible. Once a Credit Note is cancelled, it cannot be un-cancelled. If you cancelled in error, you will need to create a new Credit Note. Do not cancel a Credit Note unless you are certain — especially if it has already been shared with the client or filed for GST.
📌 Cancel vs Delete. DaaiSuite does not permanently delete Credit Notes. “Cancel Credit Note” flags the record as cancelled (isCancel = true) and reverses its financial and stock effects, but the record stays in the system permanently for audit and compliance purposes. This is deliberate: a cancelled Credit Note that was already issued to a client or filed in GST must remain traceable.
⚙️ Permissions Reference
Each action on a Credit Note is controlled by the role permissions assigned in Settings → Roles:
| Permission | Controls |
|---|---|
| Create | The Add button in the list view and the Save button in the aside. |
| Update | The Edit button, the Update button, the Apply to Invoice button, and the Refund tab visibility. |
| Delete | The Cancel Credit Note button in the Details form footer and the Cancel option in the list’s Action menu. |
| Read All | The ability to view all Credit Notes (not just your own), and the Previous / Next navigation arrows in VIEW mode. |
| Changelog | The Logs tab visibility. |
| Print Record | The Export option in the list’s Actions dropdown. |
💡 Tips & Edge Cases
💡 Tips
- Always select the correct Invoice Number first — every other field (Client, Project, currency, GST type) is derived from it and cannot be changed after saving.
- Enter corrected values as what the line should have been, not the difference. The system works out the credit automatically.
- Tick only the lines that need correcting — lines you do not tick are unaffected by this Credit Note.
- Pick a specific Reason (Overcharge / Cancellation / Discount / Other) so your audit trail is meaningful months later.
- If the Credit Note value exceeds the Invoice’s outstanding, the excess sits as a cash balance on the Credit Note. Use Apply to Invoice to put it against another open Invoice, or use Refund to return it to the client.
- The Send Email button (on Credit Note View tab) mails both the client and the credit note owner — verify the client’s email is correct on their CRM/Client record before sending.
- To navigate quickly between Credit Notes without closing the aside, use the ‹ / › arrows in VIEW mode (requires Read All permission).
⚠️ Edge Cases
- No invoices in the dropdown? Only Invoices with an outstanding or paid balance appear. If you cannot find an Invoice, check whether it has already been fully credited or cancelled.
- Corrected value rejected? The system blocks Quantity greater than the original, Unit Price greater than the original, and tax rates greater than the original. Reset the field and enter a lower value.
- Apply to Invoice not visible? This button only appears when the Credit Note has a positive remaining cash balance (actualPaidInvoiceAmount greater than 0). If the balance has been fully refunded or applied, the button is hidden.
- Refund tab not visible? Same condition — requires a positive cash balance and the Credit Note must not be cancelled.
- Unsaved changes warning on close? If you click the ✕ button while in EDIT mode with changes, a “You have unsaved changes!” dialog asks whether to save or discard. Clicking the save option runs the Update flow; clicking discard discards all changes.