Set up credit note reason accounts

Each line of a credit note has a Reason, such as Physical Return, Price Adjustment or Goodwill. Credit Note Reason Accounts lets you map each reason to a ledger account.

Check the mapping

1. Open Settings › Credit Note Reason Accounts

   In the menu on the left, select Settings, then Credit Note Reason Accounts.

   

   1. Credit Note Reason Accounts in the Settings menu.
   2. Reason: one row per credit reason.
   3. Posting Account: — Falls back to revenue account — means no account is mapped.
2. Clear any mapped account

   If a reason shows an account instead of — Falls back to revenue account —, open its list and choose — Falls back to revenue account —. Then select Save Changes at the bottom. You'll see Reason accounts updated successfully.

What each reason means on a credit note

Reason	Use it when
Physical Return	Goods come back to you. The returned quantity goes back into stock.
Damaged on Arrival	Goods arrived damaged and come back. The returned quantity goes back into stock.
Short Shipment	You billed for more than you delivered.
Over-billing	You charged too much.
Price Adjustment	You agreed a lower price after invoicing.
Retrospective Discount	A discount given after the invoice, for example for volume.
Rebate	A rebate agreed with the customer.
Billing Error	The invoice was wrong for another reason.
Cancellation	The sale is cancelled.
Goodwill	A gesture of goodwill.

The list also shows TaxCorrection. It can't be picked on a credit note, so leave it as it is.

If something goes wrong

Message	What to do
Failed to update reason accounts	Try again. Only people who can edit credit notes can save this screen.
A credit note fails to post, naming CreditReasonAccount	Set that reason back to — Falls back to revenue account — and save.