Giddh Docs
Invoice Management
How to Create Credit Note

How to Create Credit Note

A Credit Note is an official document issued to a customer to adjust or cancel a part of a previously issued invoice. It is commonly used in cases such as product returns, overbilling, or providing post-sale discounts. Giddh makes it easy to generate and manage credit notes efficiently.

Step 1: Search for “New Credit Note”

Giddh offers a powerful search shortcut to help you quickly locate any feature or module:

Press Ctrl + G on Windows or Cmd + G on Mac,

In the search bar, type “New Credit Note”.

Select the New Credit Note option that appears in the search results.

OR

Please refer to this link for the Credit Note page:

https://books.giddh.com/pages/vouchers/credit-note/create

Step 2: Select an Existing Customer or Add a New One

  • In the Customer field, choose the customer for whom you want to issue the credit note.

  • If the customer does not exist in your records, click “Add Customer”.

  • Enter all the required customer details, including:

  1. Customer Name – Full legal name of the customer or business

  2. Mobile Number and Email – For communication and delivery of the credit note

  3. Billing Address – For documentation and tax reporting

  4. GST – Required for GST-compliant credit notes

Enter Email id and Mobile Number.png

Step 3: Fill in Product or Service Information

Add the items or services that are being adjusted or returned through the credit note.

For each line item, fill out:

  1. Item Name – Select from your inventory/service list or type manually.

  2. Quantity – Specify how many units are being returned or adjusted.

  3. Rate/Price – The rate per unit (before tax).

  4. Applicable Tax (%) – Select GST based on your tax setup and the nature of the transaction.

  5. Discount – If applicable, enter any discount offered during this adjustment (fixed or percentage)

Select ProductService.png

Step 4: Generate the Credit Note

  • After carefully reviewing all customer and item details, scroll down to the bottom.

  • Click the “Generate Credit Note” button to save and issue the document.

Once generated:

  • The credit note will be stored in the Credit Notes section of your account.

  • You can download it as a PDF, email it to the customer, or link it with the original sales invoice.

  • The amount will reflect in the customer’s ledger as a reduction in receivables or as a balance available for future use.