37. How to make and use credit notes in Sleek Bill?

How to make a credit note in Sleek Bill?

There are situations when you have already issued an invoice but your client is not happy with the received products / services or there is a discordance in your invoice. In such cases, there will be a negative impact in your accounting balance so you will have to issue a credit note.

To do that in Sleek Bill, go to your Dashboard and click on + Credit Note to create a credit note. Just as you see in the picture:

Now, in the newly opened window you can create a credit note by doing the following:

Adding a client - at the top of the screen you can select the client for which you are making the credit note from the drop down list. After you added a client move on to

Selecting the invoice for which you are making the credit note - as mentioned at the beginning, you are creating a credit note against an already made invoice. Sleek Bill will show you a list of the invoices that were created for the client you selected. Select the appropriate invoice number and the Invoice date will be automatically filled in.

Add a reason - you need to add a reason for which you are making a credit note. If none of the ones you find in the drop down list match, select "Others"

So far, this is how your credit note will look like:

Now, you need to select an item (or more) that the client has sent back or that is part of the reason for the credit note (depending on the reason you chose above). In our case, we have chosen Sales return as our reason, so we are going to select the service that appeared in our original invoice.

Since for this example the client was not satisfied with one of the products received, we are issuing a credit note for the value of this item. Our credit note so far will look like this:

This was the only item on the initial invoice, so our credit note is done. Click on Preview & Save. After this, click on Save Document at the top left corner.

You will notice now that Sleek Bill will ask you if you Wish to restore the stock associated with this Credit Note?. In our case, since the client returned an item, we click on Restore items.

How can you use an open credit note?

An open credit note means that the client you issued the credit note for has credit that can be used against other invoices that you issued for them.

So, in Sleek Bill, you can go to Invoices and click on any unpaid invoice for the respective client, that has a total amount equal or greater than the total credit available on your credit note.
Once you selected an invoice, click on Add payment, just as shown below:

Click on Payment Type and select Credit Note. Underneath it, in Available, select the available Credit Note number. Then click on Pay, just as shown in the picture below:

Now your invoice will reflect the final balance and any amount due. You can save it again as PDF to send it to your client or send it straight from Sleek Bill.

If you go back to Credit Notes you'll now see that the credit note you issued now cannot be used anymore.

Do credit notes appear in GSTR1?
Yes, they are added to the CDNR tab in your GSTR1 if your client is registered and in the CDNUR tab if your client is not registered.

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