A Credit Note is a GST-compliant document issued to reduce the value of an already issued invoice. It is typically used when there’s a need to adjust quantities, prices, or tax rates after an invoice has been generated. This article explains when and how to issue a credit note in DAAI Business Suite, including GST compliance rules and the correct method to enter data.
➕ Creating a Credit Note
Navigation Path:
Billing → Credit Note → + Add (Green Button)
- Select Invoice – Choose the invoice to which this credit note applies.
- Enable Corrected Values – Tick the checkbox “Enable Corrected Values Row” under the billing items table.
- A new row labeled “Corrected Values – Enter Revised Final Amounts (System will auto-calculate credit note)” will appear below each original invoice item.
- Enter Corrected Values – In the “Corrected Values” row for each item, enter the new final expected values for quantity, unit price, and tax rate.
- Only the Total is auto-calculated. Click Save to generate the Credit Note
⚠️ Important: Enter the final values, not the difference. The system calculates the difference automatically.
System Calculation – The system will auto-compute the amount to be credited based on differences between the original invoice and corrected values.
📋 Fields in Credit Note Form
| Field | Description |
|---|---|
| Credit Note No. | Auto-generated or manually entered unique number. |
| Invoice Number | Select the linked invoice from the dropdown list. |
| Date | Date of credit note creation. |
| Debit Note No. | Optional – enter if applicable. |
| Reason | Choose from predefined reasons (e.g., Quantity reduced, Price correction, Tax correction). |
| Billing Items Table | Shows original invoice items. Includes: • Original Values row (read-only) • Corrected Values row (editable after checkbox tick). |
| Corrected Quantity | New final quantity. |
| Corrected Unit Price | New final unit price. |
| Corrected Tax Rate | New final tax rate (CGST/SGST/IGST). |
| Total (₹) | Auto-calculated based on corrected values. |
- Go to Billing → Credit Note.
- Click the credit note you want to edit.
- Click Edit (Cyan Button).
- Update values → Click Update.
🔍 Viewing & Searching Credit Notes
From the list view, you can search/filter by:
- Credit Note No.
- Invoice No.
- Debit Note No.
- Date range
- Amount
- Cancel Status
📄 How to View the Generated Credit Note
Once you have created or updated a credit note:
- Go to:
Billing → Credit Note - Open the specific credit note record you want to view.
- Click on the “Credit Note View” button.
- This will open the GST-compliant, fully formatted credit note, which includes:
- Original Values Table – Displays the invoice’s original quantity, unit price, and tax rate.
- Corrected Values Table – Shows the revised/expected values you entered.
- Difference Summary Table – Lists the total changes in Quantity, Price, Tax, and any other adjustments.
💡 This view is ready for download, print, or direct submission for GST returns.
Sample Data of Generated Final Credit Note View
Credit Note — Adjustment Summary
| Sr. No. | Item Description | Original Qty | Revised Qty | Original Unit Price (₹) | Revised Unit Price (₹) | Original Tax Rate | Revised Tax Rate | Credit Reason | Amount Credited (₹) |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Machinery Part X | 2 | 1 | 50,000 | 25,000 | 10% CGST + 10% SGST | 9% CGST + 9% SGST | Qty reduced from 2→1 and unit price reduced for remaining qty | See Breakdown |
Breakdown of Credit Amount
| Adjustment Type | Qty | Unit Price (₹) | Tax Rate | Tax Amount (₹) | Total Credit (₹) | Notes |
|---|---|---|---|---|---|---|
| 1. Quantity Reduction | 1 | 50,000 | 10% CGST + 10% SGST | 10,000 + 10,000 | 70,000 | Eliminated 1 unit at original price & tax |
| 2. Price Reduction (Remaining Qty) | 1 | 25,000 reduction | 10% CGST + 10% SGST | 2,500 + 2,500 | 30,000 | Price drop from 50,000→25,000 for remaining qty |
| 3. Tax Rate Change (Remaining Qty) | 1 | 25,000 | 1% CGST + 1% SGST decrease | 250 + 250 | 500 | Tax rate reduced from 10%→9% |
Total Credit Amount: ₹70,000 + ₹30,000 + ₹500 = ₹1,00,500
✅ This format makes GST officers happy because:
- It clearly separates each reason for credit.
- Shows original vs revised values.
- Breaks down tax adjustments separately.
💡 Tip: When entering “Corrected Values,” think in terms of what the final invoice should look like after changes, not just the deduction amount. This ensures accuracy and compliance.