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Credit Note
When should I create a credit note instead of editing the invoice?
Use a credit note whenever the customer has returned goods, you're giving a post-sale discount, or you need to correct an invoice that has already been shared or paid.
Never edit an invoice the customer has already received or paid. The copy they hold will no longer match your books, and your GST records won't reconcile. A credit note keeps both sides consistent.
How do I create a credit note?
Go to Credit Notes → Create. Select the original invoice, then select the items being returned or the amount being credited. mazu calculates the GST adjustment automatically.
Does a credit note update the customer's outstanding balance?
Yes, immediately. The credited amount is deducted from what the customer owes you.
For example, if a customer owed ₹10,000 and you raise a ₹2,000 credit note, their outstanding drops to ₹8,000 straight away.
Does a credit note adjust my GST liability?
Yes. The tax on the credited amount is reversed and reflected in your GST reports, so the return flows through to your filing without a manual adjustment.
Do I need to link a credit note to the original invoice?
Linking it to the original invoice is strongly recommended. It keeps a clean audit trail and ensures the credit is reported correctly against the original supply for GST.
Does a credit note add stock back to inventory?
Yes, when the credit note is for returned goods and you select the returned items on it. Stock updates automatically.
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