Manager.io/Manager

Create credit notes for customers to refund them or allocate amounts to unpaid invoices

Use the Credit Notes plugin to issue credit notes to customers. Credit notes reduce or minus the full amount of sales invoices for errors, disputed charges, returns, damaged items and faulty items. 
 
To create a credit note, click New Credit Note, complete the required fields and click Create to save the credit note. The Account field is for the Income Account to be reduced by the credit note. 
 
Once the credit note is created it will show the status Unallocated. 
 
To allocate a credit note to an outstanding invoice, click the Journal Entries tab and create a New Journal Entry. Debit the account - Accounts Receivable and select the Credit Note; then credit the account - Accounts Receivable and select the Sales Invoice. 
 
To refund a customer for the credit note, click the Bank Accounts tab and select the bank account. Click on Actions and select Spend Money from the drop down menu. Enter as the account – Accounts Receivable and select the Credit Note. If the refund is paid from a cash account, follow the same procedure by clicking the Cash Accounts tab. 
 
When the credit note is allocated the status will be changed to Allocated.