How to create a sales credit in Xero

Annette Ferguson

Annette Ferguson

How to create a sales credit in Xero

Need to create a credit for a customer? There’s a couple of ways to achieve this. First, if the credit is for an unpaid invoice, you can create the credit note directly from the invoice. 

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Find the invoice in Sales and drill into it and on the Invoice Options menu, select “Add Credit note”.
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Here you’ll see how it immediately creates a credit note using the details of the original invoice. You will only need to change the date and click “Approve”.

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After approving, it will take you to the invoice showing the credit note applied.
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 If you want to send a copy of the credit note to your customer. Click in to the Credit Note.
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And then choose how you want to send it.
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What if the credit note is for an invoice that has already been paid or for something not related directly to an invoice? In Sales, select the dropdown menu by New and choose “Credit Note”.
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Fill out the details and select “Approve”.
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You’re now given the option to allocate this credit to an existing invoice. You can select “Cancel” if you don’t want to allocate it to any invoices and you want to show it separately on your customer’s statement.
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Next it will take you to the credit note and can now send a copy to the customer. 
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You can make changes by clicking the “Credit Note Options” on the right side.
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You can allocate the credit by selecting the “Credit Note Options” and select “Allocate Credit”.
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This will bring all the outstanding invoices from the customer up and allow you to allocate the credit.
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That’s how to create a sales credit in Xero.

Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!

I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!

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