# Sales returns and credit notes

> Issue a credit note against an invoice, confirm it to reverse revenue and tax, refund the customer or apply the credit to other invoices.

Canonical: https://docs.getonebooks.com/sales/sales-returns/
Language: en
Documentation index: https://docs.getonebooks.com/llms.txt

A sales return — printed as a **credit note** — reduces what a customer owes after an invoice was sent: goods came back, the price was too high, or a service was not delivered. Confirming it reverses the revenue and tax; paying the money back is a separate **refund** step, so the credit can instead be kept against future invoices.

![The Sales Returns list with statuses and pending refunds](https://docs.getonebooks.com/screenshots/en/sales-returns-list.webp)

## Create a return

1. Open **Sales → Sales Returns** and select **Create Return**.
2. Pick the **customer** and, if the return relates to a specific invoice, the **original invoice** — its lines are offered so you can pick what came back.
3. Add or adjust **lines**: item or description, quantity, unit price and tax.
4. Enter a **reason** (printed on the credit note) and notes.
5. Select **Save as Draft** to review later, or **Save & Confirm**.

![The Create Sales Return form linked to an original invoice](https://docs.getonebooks.com/screenshots/en/sales-return-new.webp)

Rules:
- The total of all confirmed returns against one invoice cannot exceed the invoice total.
- Returns cannot be created against **Void** or **Written Off** invoices.
- A return without an original invoice is allowed — for example a goodwill credit.

## Confirm

Confirming makes the credit note final and posts it. A confirmed return reduces the customer's balance immediately.

![A confirmed credit note with its lines, the original invoice link and the Refund action](https://docs.getonebooks.com/screenshots/en/sales-return-detail.webp)

> **Accounting effect**
> Debit **4000 Sales Revenue** (net) · Debit **2100 VAT Payable** (tax) · Credit **1100 Accounts Receivable** (total). If the original invoice carried a discount, the discount share is reversed with a credit to **4200 Discount Given**.

## Refund or keep the credit

- **Refund** — select **Refund** on the credit note, enter the amount, date, method and the cash or bank account. The status becomes **Partially Refunded** or **Refunded**.

![The refund dialog on a credit note](https://docs.getonebooks.com/screenshots/en/sales-return-refund.webp)

> **Accounting effect**
> Debit **1100 Accounts Receivable** · Credit **1200 Cash** or **1210 Bank** for the amount refunded.

- **Apply the credit** — leave it unrefunded. When you next record a payment for that customer, the unapplied credit is offered to net against open invoices; see [Payments received](https://docs.getonebooks.com/sales/payments/).

## Void a return

A confirmed return that was a mistake can be **voided** (permission **salesReturns.void**), which reverses its entry. A return that has been refunded must have the refund corrected first.

## Saudi Arabia

Credit notes are e-invoicing documents: they are signed and submitted to ZATCA when confirmed, and they must reference the original invoice. See [Saudi Arabia](https://docs.getonebooks.com/tax/saudi-arabia/).

## Statuses

**Draft** → **Confirmed** → **Partially Refunded** → **Refunded**; **Void** at any point after confirmation.

## Related

  - [Invoice statuses, void and write-off](https://docs.getonebooks.com/sales/invoice-statuses/)
  - [Purchase returns and debit notes](https://docs.getonebooks.com/purchases/purchase-returns/)